Building alliances with other wealthy families
The concept of the family alliance, or a unifying bond between two wealthy families, is one that has been allowed to fade away. It’s important for wealthy families to reclaim the power of these friendships for the preservation of its values across generations.
What is a family alliance?
If you typed the word “family alliance” into Google, you’d likely get a bunch of sociopolitical entries, probably about counseling support services for victims of crimes, infertility, children’s advocacy, etc. These are contrived to defend society from threats.
Strange as it may sound, alliances between wealthy families share this purpose. By fostering close ties with another family that you share your values and mission with, you aim to protect your family’s:
- Social status
- Business success
- Mental and/or physical health
Why they’re important for the ultrawealthy
Family alliances between the wealthy are becoming an old-fashioned concept more and more. But they should be more of a focus, especially for the ultrawealthy. Like any friendship, being part of a close-knit circle may allow you to:
- Support each other as parents in critical aspects such as marriage, education, preservation of values, culture, etc.
- Provide social opportunities for your next generation such friendships, business partnerships, or marriage
- Share resources and knowledge critical for bringing up your kids
- Identify useful resources and keep out the scammers who are just after your money
- Be given access to business opportunities such as succession and strategic partnerships
- Overall, feel more secure that there is an ally, someone who has your best interests in mind as an objective third party, and who is not looking to profit from your wealth but rather enrich and protect your family
The allure of money and status can attract predatory individuals who disguise themselves as friends. This can lead to emotional, social, and financial ruin. It’s imperative that as an ultrawealthy family you foster alliances with true friends who share the same values as you because of the threats that exist.
How to develop family alliances
Friendships can be hard to maintain, especially as adults, as the demands of work and raising a family is given more priority than social agendas. Lifestyle changes, changes of location, etc. – even more common in today’s migrant age – don’t make it any easier to maintain lasting, close bonds. You would think that social media would facilitate friendships, and often it does, but the focus of these platforms is rarely community building and sharing of values.
Perhaps there are families that you know but have not endeavored to formally align with. Or maybe you intend to make it a priority to meet new families for the purpose of developing these alliances. Here are some guidelines to follow.
- Be patient. Anytime there are multiple personalities involved, there is likely to be lack of alignment. Don’t expect to match in every single way. Respect those differences, listen, and proceed slowly when developing these alliances.
- Set some guardrails. While they don’t have to be a written set of hard and fast rules, setting up guidelines will help manage any potential clashes. Any healthy relationship must have boundaries set from the beginning, and all parties must agree to respect them.
- Create traditions. This may be the blending of your family’s rituals with another family’s or they can be new routines that you come up with together.
- Have fun. This isn’t a chore; it should be something that rejuvenates your spirit. The more you can make it as enjoyable as possible for everyone involved, the higher the chance of strengthening the bond.
Did we convince you to give it a try?
As you can tell, we think family alliances are positive for our clients and we encourage you to devote some thought into developing new ones or improving those you may already have. If we’ve said anything you wish to discuss, please reach out.
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