In the world of high-net-worth investing, words wield power—yet they are often wielded irresponsibly. The rise of marketing hype and the deliberate obfuscation of terms have created a landscape where even seasoned investors find themselves in a fog of confusion. This deception is not accidental; it’s a calculated tool used by firms eager to position themselves as innovative or bespoke, often at the expense of transparency. The ultra-wealthy deserve clarity, not clever lexicons that serve to mask what’s truly happening behind closed doors. The current landscape, rife with buzzwords like “holistic advice” or “assets under advisement,” elevates form over substance, ultimately undermining trust and enabling a select few to profit at the expense of clients’ understanding.
The newly formed “Wealthesaurus” initiative exposes these illusory terms and sets a standard for honest, precise language. It’s about time the industry begins to shed the veneer of sophistication that often serves as a smokescreen. For those who advocate for a fairer, more transparent wealth management system, these changes are overdue. The manipulation of language distorts true value, dilutes accountability, and fosters cynicism—particularly among the clients who entrust their fortunes to these firms under the illusion of bespoke service and impeccable expertise.
The real stakes behind “multifamily office” and “assets under advisement”
Perhaps no term better exemplifies the industry’s penchant for confusing marketing than “multifamily office.” Originally, this term was reserved for serious, highly exclusive operations serving a handful of ultra-wealthy families with complex, multigenerational needs. Now, the label has become a catch-all phrase used indiscriminately by firms eager to associate themselves with exclusivity. Such branding dilutes the significance of a true family office, which should adhere to rigorous standards—like a minimum of ten complex families, conflict-free services, and proven experience managing substantial wealth. When firms slap the “multifamily office” moniker on storefronts without meeting these standards, they deceive clients and tarnish the integrity of genuinely elite services.
Similarly, the use of “assets under advisement” reveals industry’s penchant for marketing language that disguises a lack of transparency. Firms often tout their AUA figures to inflate perceived scale, even when these assets are only being considered or administratively processed. A clear distinction between assets under management and assets under advisement is crucial for clients to understand where their money actually stands. When firms blur these lines, they obscure the true scope of their fiduciary responsibility, leaving clients vulnerable to inflated claims of success and influence. This plays directly into the broader problem—an industry obsessed with appearances rather than accountability, which often leaves the wealthy misinformed and ill-served.
Marketing hype as a barrier to meaningful advice
The proliferation of terms like “holistic advice,” “family office services,” or “assets under advisement” demonstrates how the industry prioritizes marketing over meaningful guidance. These phrases evoke an image of comprehensive, tailored service; yet, in reality, they often signify little more than surface-level assurances. Wealth management firms exploit these terms to differentiate themselves in a competitive market, but too often, they mask superficial offerings that fail to address the client’s real needs.
The consequence is a cycle where clients are sold vague promises rather than concrete, actionable advice grounded in expertise. This is particularly troubling given the stakes: managing hundreds of millions or billions of dollars requires clarity and rigor, not buzzwords designed to impress or distract. A more honest industry would eschew inflated claims for transparent, detailed explanations of what services truly entail and how they benefit clients—especially when dealing with such substantial assets. Industry players must recognize that substance beats hype: trust is built on honesty, not clever branding.
The case for a new language—one that restores trust
The creation of the Wealthesaurus signals a promising shift towards honest communication. By establishing clear definitions—like the specific client criteria for “multifamily offices” or precise methods of calculating “assets under advisement”—it aims to make industry jargon accountable and intelligible. This initiative could serve as a blueprint for reform, not only reducing confusion but also empowering clients to make informed decisions.
A truly competitive wealth management industry should be based on transparency and integrity, not smoke and mirrors. When clients understand the true meaning of terms, they can hold firms accountable and demand better service. This requires industry leaders to embrace clarity and to eschew the temptation of marketing hype. It also calls on clients to be more discerning—asking detailed questions rather than accepting vague promises. In a sense, the industry’s future hinges on the ability of firms to communicate with honesty, rather than resorting to jargon that masks deficiencies.
The core problem: language as a branding tool, not a service enabler
Ultimately, the pursuit of wealth today has morphed into a game of branding—where words are used more for marketing impact than genuine service delivery. This commodification of language dilutes the value of truly sophisticated offerings and fosters skepticism. Wealth managers who elevate their brands through buzzwords without substantive backing undermine their credibility and that of the entire industry.
For those seeking a fairer system, this scenario is unacceptable. Removing the haze around complex terms isn’t just about semantics; it’s about restoring integrity, restoring fairness, and ensuring that wealthy clients receive honest guidance. A healthier industry would prioritize clarity over cleverness, transparency over hype. Only then can we rebuild a landscape where trust is restored, and clients are truly empowered to preserve and grow their fortunes based on clear, accurate information—not inflated promises and deceptive language.