Introducing Wealthesaurus: Demystifying Wealth Management Language
In an industry awash with jargon and marketing buzzwords, the Ultra High Net Worth Institute (UHNWI) has launched a pioneering tool aimed squarely at cutting through the noise: the Wealthesaurus. This online resource compiles and clarifies more than 80 commonly used terms in wealth management—many of which are too often misused or inflated to impress prospective clients.
With private banks, registered investment advisors, boutique firms, and private equity jockeying fiercely for the attention of ultra-wealthy investors and family offices, accuracy and transparency are more important than ever. The Wealthesaurus seeks to address these challenges by creating standardized definitions that serve both clients and advisors.
The Rising Need for Clear Wealth Terminology
In 2024, U.S. households with a net worth exceeding $5 million controlled an estimated $49 trillion in financial assets—more than half the nation’s wealth, according to Cerulli Associates. This massive concentration has intensified competition among firms catering to ultra-high net worth individuals (UHNWIs), those generally defined as having $30 million or more in assets, although some now consider $100 million the modern threshold given inflation and wealth growth.
With complex services and steep stakes, clients often find themselves overwhelmed by terms like “family office services,” “holistic advice,” or “assets under advisement.” These phrases are thrown around indiscriminately, making it difficult for non-experts to evaluate offerings or detect value.
When “Multifamily Office” Isn’t What It Seems
One of the most contentious terms is “multifamily office” (MFO). Traditionally, an MFO is a highly exclusive entity—a family office that has expanded to serve a limited number of additional ultra-wealthy families, offering bespoke, conflict-free services. However, the term has become diluted, with many Registered Investment Advisors (RIAs) and advisory firms branding themselves as MFOs regardless of scale or service quality.
The Wealthesaurus sets clear criteria: a true multifamily office typically serves at least 10 complex, multigenerational families, each with median net worths exceeding $30 million, provides specific services delivered without conflicts of interest, and possesses deep industry expertise. The lack of standardized usage leads to confusion and potentially impairs clients’ ability to make informed choices.
Decoding Asset Terms: AUM, AUA, and Beyond
Another key challenge Wealthesaurus addresses is the tangled web of asset-related terms. Wealth firms frequently cite assets under management (AUM), assets under advisement (AUA), or assets under administration (AUAdmin) to illustrate their scale. While these terms seem self-explanatory, definitions and reporting methods vary greatly, often blurring the lines between actual fiduciary control and more limited advisory roles.
For instance, some firms include AUM figures within AUA totals without transparent disclosure, inflating the perceived amount of assets they oversee. The Wealthesaurus encourages clients to ask firms for precise breakdowns to better understand the nature of services rendered.
The Origin Story: Building Consensus on Language
The idea for this lexicon emerged from the Ultra High Net Worth Institute’s own challenges. Founded in 2019 by Steve Prostano, a veteran advisor to wealthy families, the Institute’s mission is enhancing service quality in an opaque industry. While developing its Integrated Family Wealth Management Initiative, members frequently found themselves debating definitions of common terms.
As Jim Grubman, the Institute’s content chair, recalls, “It was amazing the differences people had, even around words like family enterprise.” This sparked the idea to crowdsource and curate clear, consistent definitions, leading to the creation of the Wealthesaurus website, complete with a distinctive dinosaur mascot to symbolize shedding obsolete jargon.
How Wealthesaurus Benefits Clients and Advisors Alike
- Empowers clients to navigate complex wealth management language with confidence.
- Promotes transparency by holding firms accountable for consistent terminology.
- Bridges diverse disciplines in wealth management, from estate planning to philanthropy and concierge services.
- Encourages ongoing dialogue by welcoming input from industry experts and clients.
A particular advantage is its focus on terms that significantly impact client understanding but lack accessible or jargon-heavy explanations elsewhere. Rather than rehashing technical investment products, the site links out to trusted resources like Charles Schwab’s Investing Glossary, Investopedia, and the SEC glossary for deeper dives.
An Evolving Resource for a Dynamic Industry
The Wealthesaurus is far from a static dictionary. As wealth management evolves with new products, technology, and client demands, so too will this living resource. Already, users are engaging deeply, averaging over seven minutes per session—a sign that demand for clarity runs high.
In an era when trust is paramount and billions hang in the balance, such a guide may prove indispensable. It shines a light into the complexities of managing extraordinary wealth, helping investors ask the right questions and advisors uphold transparent standards.
Editor’s Note
Wealth management jargon no longer just confuses clients; it shapes their perception and decision-making in a high-stakes environment. The Wealthesaurus initiative represents a much-needed step toward greater clarity and integrity in an exclusive industry that too often hides behind opaque terminology. As wealth concentrations grow and advisory services proliferate, this resource invites both clients and advisors to revisit the fundamentals of communication and trust.
For U.S. investors navigating this landscape, the questions remain: Are these new definitions widely adopted by firms? Will regulatory bodies recognize such standards? And how might clearer language reshape competition in wealth management? The answers will shape the future of financial advisory relationships.
