Goldman Sachs Teaches Wealthy Young Heirs About Money Management
Goldman Sachs has been offering crash courses to young heirs of affluent families, covering various topics from acquiring art and luxury watches to investing in sports franchises.
In July, approximately 50 Gen Z participants, aged 18 to 23, gathered in New York City for the bank’s two-week “NextGS Investment Intensive.” Most attendees were children of clients from Goldman Sachs Private Wealth Management.
The program caters to families with an average account size exceeding $90 million, with net worths that fluctuate between $10 million and over $1 billion.
This third annual event included a blend of lessons on fixed incomes and diversified portfolios, along with sessions dedicated to watches, jewelry, real estate, infrastructure, and the economics behind owning sports teams, as reported.
Participants also explored private markets, cryptocurrency, and the influence of artificial intelligence, which was a recurring topic in many sessions, according to Brittany Boals Moeller, a senior executive at Goldman private wealth.
Interestingly, the curriculum started with some foundational finance concepts.
Students were introduced to credit scores and budgeting and reportedly spent around an hour learning how to extract crucial market-moving information from Wall Street Journal articles.
They were given tours of Goldman’s trading floors and were educated on equity trading, hedge funds, and portfolio construction.
The program provided insights into the investment realms typically associated with the ultra-wealthy.
Specialists from Christie’s led sessions focusing on luxury items like watches and handbags, while other classes covered art, collectibles, real estate, infrastructure, and sports investments.
Participants seemed particularly keen on private markets and alternative investments, according to Boals Moeller.
However, the intensive extended beyond financial education.
Attendees engaged in an eight-hour session aimed at enhancing communication skills, executive presence, and leadership, facilitated by Bill Hoogterp, CEO of the coaching firm LifeHikes, which included role-playing exercises related to job interviews and collaborative projects.
While Goldman has kept details about the application process, participation fees, acceptance rates, and comprehensive agendas under wraps, the program potentially lays the groundwork for future relationships with individuals who could significantly influence their family’s wealth.
This advantage isn’t explicitly stated as a goal by Goldman, but the curriculum aligns closely with the wealth management services the bank offers, encompassing alternative investments and family legacy advice.
Other private banks have similarly established educational programs aimed at heirs and successors in family businesses. Comments from Goldman have been requested regarding their offering.
