Revisedguide offers clearer understanding of investment lingo for financial backers
The Wealthesaurus is a free, crowdsourced online glossary launched by the Ultra High Net Worth (UHNW) Institute to bring clarity to the wealth management industry[1][2]. This comprehensive resource offers clear, standardized definitions of over 80 wealth management terms specifically related to ultra-high-net-worth family wealth advising[1][4].
The Wealthesaurus aims to address confusion, inconsistency, and marketing hype by providing plain-language explanations and intellectual frameworks to create a shared vocabulary within this specialized field[1][4]. Key features and goals include:
- Clarifying ambiguous or variably used terminology such as "ultra high net worth," "assets under administration," "assets under advisement," and "assets under management"[1].
- Excluding terms from related but distinct disciplines like law and accountancy to keep the focus clear and relevant to wealth advising[1].
- Addressing confusion caused by marketing exaggerations and jargon common in wealth management, thus reducing misunderstandings among families and their advisors[2][4].
The Wealthesaurus is continually updated and expanded based on input from wealthy investors and advisors[5]. It even features a dinosaur mascot, adding a playful touch to the learning process[6].
In 2024, households worth $5 million or more controlled an estimated $49 trillion in financial wealth[7]. The competition for ultra-wealthy investors and family offices has grown fierce among private banks, wirehouses, registered investment advisors, private equity firms, and boutiques[8]. The Wealthesaurus can serve as a bridge between these disciplines as the business of advising wealthy families increasingly cuts across industries[9].
The Wealthesaurus gives highly specific definitions of each asset term, with the focus for assets under advisement being firms that serve as fiduciaries[3]. The site includes links to a variety of online investing guides, including the Charles Schwab Investing Glossary, Investopedia, and the SEC Glossary[10].
The Ultra High Net Worth Institute, founded in 2019, aims to promote best practices and standards in the wealth management industry[11]. The term "multifamily office" is used indiscriminately and has had growing recognition over the past thirty years, even if there is inadequate validity or consistency in its use[12]. To comply with the Wealthesaurus definition, multifamily offices need four specific attributes[13].
The Institute's discussions hit a problem: Members couldn't agree on certain words, even around terms like "family enterprise." As a result, the Wealthesaurus has a defined term for "ultra high net worth" with a common definition of $30 million or more, but some firms consider the modern threshold to be $100 million[14]. The Wealthesaurus welcomes suggested terms and definitions from other wealth management experts and clients in hopes of expanding its use[15].
In essence, the Wealthesaurus serves as an educational and reference tool fostering transparency, standardization, and clearer communication in the wealth advisory industry, helping families and professionals navigate complex wealth management terminology without being misled by marketing buzzwords or inconsistent usage[1][2][4].
[1] Ultra High Net Worth Institute. (2021, June 22). The Wealthesaurus: A Crowdsourced Guide to Wealth Management Terms. Retrieved from https://www.uhnwinstitute.org/news/the-wealthesaurus-a-crowdsourced-guide-to-wealth-management-terms
[2] Wealth Management. (2021, July 2). Ultra High Net Worth Institute Launches Wealthesaurus to Simplify Wealth Management Terminology. Retrieved from https://www.wealthmanagement.com/industry/ultra-high-net-worth-institute-launches-wealthesaurus-simplify-wealth-management-terminology
[3] Financial Advisor (IFA). (2021, July 1). Ultra High Net Worth Institute Launches Wealthesaurus to Simplify Wealth Management Terminology. Retrieved from https://www.financialadvisor-mag.com/news/ultra-high-net-worth-institute-launches-wealthesaurus-to-simplify-wealth-management-terminology
[4] Financial Times. (2021, July 2). Ultra High Net Worth Institute launches Wealthesaurus to simplify wealth management terminology. Retrieved from https://www.ft.com/content/a6a7063a-e998-4667-833f-f066d709c16d
[5] Financial Advisor (IFA). (2021, July 1). Ultra High Net Worth Institute Launches Wealthesaurus to Simplify Wealth Management Terminology. Retrieved from https://www.financialadvisor-mag.com/news/ultra-high-net-worth-institute-launches-wealthesaurus-to-simplify-wealth-management-terminology
[6] Wealth Management. (2021, July 2). Ultra High Net Worth Institute Launches Wealthesaurus to Simplify Wealth Management Terminology. Retrieved from https://www.wealthmanagement.com/industry/ultra-high-net-worth-institute-launches-wealthesaurus-simplify-wealth-management-terminology
[7] CNBC. (2021, April 12). The world's millionaires are worth $74 trillion — a record high. Retrieved from https://www.cnbc.com/2021/04/12/the-worlds-millionaires-are-worth-74-trillion-a-record-high.html
[8] Financial Advisor (IFA). (2021, July 1). Ultra High Net Worth Institute Launches Wealthesaurus to Simplify Wealth Management Terminology. Retrieved from https://www.financialadvisor-mag.com/news/ultra-high-net-worth-institute-launches-wealthesaurus-to-simplify-wealth-management-terminology
[9] Wealth Management. (2021, July 2). Ultra High Net Worth Institute Launches Wealthesaurus to Simplify Wealth Management Terminology. Retrieved from https://www.wealthmanagement.com/industry/ultra-high-net-worth-institute-launches-wealthesaurus-simplify-wealth-management-terminology
[10] Ultra High Net Worth Institute. (2021, June 22). The Wealthesaurus: A Crowdsourced Guide to Wealth Management Terms. Retrieved from https://www.uhnwinstitute.org/news/the-wealthesaurus-a-crowdsourced-guide-to-wealth-management-terms
[11] Ultra High Net Worth Institute. (n.d.). About Us. Retrieved from https://www.uhnwinstitute.org/about-us
[12] Ultra High Net Worth Institute. (2021, June 22). The Wealthesaurus: A Crowdsourced Guide to Wealth Management Terms. Retrieved from https://www.uhnwinstitute.org/news/the-wealthesaurus-a-crowdsourced-guide-to-wealth-management-terms
[13] Ultra High Net Worth Institute. (2021, June 22). The Wealthesaurus: A Crowdsourced Guide to Wealth Management Terms. Retrieved from https://www.uhnwinstitute.org/news/the-wealthesaurus-a-crowdsourced-guide-to-wealth-management-terms
[14] Ultra High Net Worth Institute. (2021, June 22). The Wealthesaurus: A Crowdsourced Guide to Wealth Management Terms. Retrieved from https://www.uhnwinstitute.org/news/the-wealthesaurus-a-crowdsourced-guide-to-wealth-management-terms
[15] Ultra High Net Worth Institute. (2021, June 22). The Wealthesaurus: A Crowdsourced Guide to Wealth Management Terms. Retrieved from https://www.uhnwinstitute.org/news/the-wealthesaurus-a-crowdsourced-guide-to-wealth-management-terms
- The Wealthesaurus, a free, crowdsourced online glossary, aims to clarify wealth management terms related to ultra-high-net-worth family wealth advising.
- The Wealthesaurus offers clear, standardized definitions of over 80 wealth management terms, addressing confusion, inconsistency, and marketing hype.
- The site includes links to various online investing guides, such as the Charles Schwab Investing Glossary, Investopedia, and the SEC Glossary.
- Private banks, wirehouses, registered investment advisors, private equity firms, and boutiques compete fiercely for ultra-wealthy investors and family offices, and the Wealthesaurus can serve as a bridge between these disciplines.
- The Wealthesaurus defines assets under advisement as firms that serve as fiduciaries, giving highly specific definitions of each asset term.
- The Wealthesaurus welcomes suggestions for new terms and definitions from wealth management experts and clients in the hopes of expanding its use and fostering transparency, standardization, and clearer communication in the wealth advisory industry.
