By Jacoline Loewen
February 25, 2025

“It’s different this time.” Those five words are the most dangerous in investing—a siren call that’s lured many to ruin. They whisper that history’s lessons and the bedrock principles of wealth-building—discipline, diversification, patience—can be tossed aside. But here’s the twist: in the world of family wealth management, it is different this time. Not because the rules don’t apply—they do—but because the societal and economic landscape has shifted so dramatically that families must think and act differently to secure their long-term goals.

For years, I’ve been a "Family First" advocate—practically a cheerleader—helping clients build not just wealth, but legacies. Yet today, the pressures facing families are of a magnitude I never anticipated. Inflation bites harder, technology disrupts faster, and the modern family itself is fraying at the edges. Marriages dissolve, children move far away and drift, global cousins barely know each other. The old certainties—stable unions, tight-knit clans, shared values—are eroding. And with them, the assumptions underpinning family wealth management are being tested like never before.

The Past Still Matters—But the Future Demands More

Success in this new world isn’t about abandoning the best of the past; it’s about preserving it while embracing what I call the "next practice." Compounding still works miracles. Diversification still shields against storms. But clinging to yesterday’s playbook without adapting to today’s realities is a recipe for stagnation—or worse. The families I work with know this: wealth isn’t just numbers on a balance sheet. It’s the family itself—the heart of every decision, the engine of every aspiration.

My role? Helping families articulate and achieve their broader vision—lifestyle, business, education, financial security, philanthropy—while navigating a louder, messier, and more fragmented landscape than ever. I used to believe divorce was rare, drug issues were outliers, and marriages were forever. I was wrong. Changes in the modern family aren’t just possible—they’re inevitable. Children increasingly carve their paths, separate from the family core. Global families stretched across continents, have less time together and fewer shared touchstones with their cousins. Community—the root of happiness—is harder to create and sustain.

The Non-Financial Key to Multigenerational Wealth

Here’s the issue: the most critical part of family wealth management isn’t financial—it’s non-financial. It’s the education and engagement of the family across generations, bridging divides of age, geography, and values. This may be the wisest investment a family can make—not in stocks or real estate, but in itself. Why? Because wealth is an advantage only if the family stays cohesive enough to wield it. Risk management, succession planning, and long-term preservation all hinge on this.

Picture a family enterprise spanning decades. The portfolio might be stellar—low fees, high returns—but if the kids don’t understand the "why" behind the wealth, if the cousins don’t trust each other if the next generation isn’t engaged, it’s all for naught. I’ve seen it: families fractured by divorce, addiction, or sheer distance, watching their wealth dissipate not from bad investments, but from bad relationships.

Adapting to Thrive

So, what does "next practice" look like? It’s doubling down on the principles that endure—rigorous planning, prudent diversification—while facing the new realities head-on. It’s investing in family retreats to rebuild bonds, in education to align values, in communication to span the generational chasm. It’s recognizing that wealth’s true power lies in giving families freedom and resilience—advantages that shine brightest when the world gets tough.

"It’s different this time" isn’t an excuse to ignore history; it’s a call to adapt with courage. But today, that means leading families through a world where the stakes are higher, the pressures are fiercer, and the rewards—for those who get it right—are greater than ever. Let’s build legacies that last—not just for now, but for generations.