This summer, we are revisiting the Mercer Advisors Investment Philosophy and its five core principles. The first principle, , is foundational to everything that we do.
When Cornelius Vanderbilt died in 1877, he was the wealthiest man in the world, leaving more than $100 million to his son, Billy. But he left no plan for how that extraordinary wealth should be managed, preserved, or transferred. Within 70 years, the Vanderbilt fortune had largely disappeared. Today, none of the descendants can trace their wealth to the fortune Vanderbilt left behind. As the 2023 book The Missing Billionaires explains, each living Vanderbilt descendant could have a personal fortune of roughly $5 billion today if the family had simply invested in a diversified portfolio of U.S. stocks, spent prudently, and paid applicable taxes.
The disappearance of the Vanderbilt fortune was, at its core, a failure of financial planning. It illustrates why a financial plan — not markets, the economy, or investment selection — is the starting point for everything we do at Mercer Advisors.
Investing is not financial planning
Investing is not financial planning, and an investment portfolio is not a financial plan. A portfolio is only one tool in a broader plan. Without clearly defined goals, asset allocation becomes a bridge to nowhere — that is, capital put at risk without a clear destination.
Financial planning is an ongoing process through which a family and its team of advisors can define success, set measurable goals, and determine whether the family’s resources can support those goals over time. It incorporates income, taxes, longevity, education, family governance, asset protection, and other factors that shape long-term financial security.
The result is a documented financial plan: a practical blueprint for pursuing the family’s goals and achieving Economic Freedom™, a state in which families no longer worry about money. Because life changes, the plan should evolve as circumstances and information change. For Mercer Advisors, this planning process provides the essential context for comprehensive advice, including investment guidance.
The fortress balance sheet
Building and sustaining wealth requires more than a portfolio. It depends on returns, taxes, spending, liquidity, risk management, family governance, public policy, behavioral discipline, and the ability to adapt as circumstances change. Comprehensive wealth management takes these factors into account when designing financial plans and managing family balance sheets.
The fortress balance sheet framework focuses on building and sustaining inflation-adjusted, after-tax wealth over time while preserving flexibility and resilience. A well-constructed financial plan and balance sheet should address several key objectives:
- Growth — capture the inflation-adjusted, after-tax returns needed to meet long-term goals
- Income — sustain current spending with reliable, after-tax cash flows
- Liquidity — ensure access to capital for planned needs, unexpected liabilities, and new opportunities
- Protection — manage economic, natural, and health-related risks that could threaten a family’s financial security
- Flexibility — preserve the ability to adjust as circumstances change
This framework also reinforces why investment strategy should be derived from the financial plan, not the other way around. Asset allocation, risk tolerance, and return expectations should align with the family’s broader objectives, time horizons, and constraints.
Even the wealthiest families need financial planning
The Vanderbilt story is not unique. As “The Missing Billionaires” documents, the U.S. had roughly 4,000 millionaires in 1900. If just a fraction of those families had remained broadly invested, spent prudently, and maintained discipline across generations, their descendants would include thousands more billionaires today. Instead, Forbes counted 989 U.S. billionaires in 2026, and virtually none can trace their fortunes to one of those millionaire families from 1900.
A skeptic might argue that such failures emerge only over very long periods. The evidence suggests otherwise. Fewer than 10% of today’s billionaires are descended from inaugural members of The Forbes 400: The Richest People in America list, published in 1982. Even the member of that original list with the lowest net worth (worth $100 million at the time) could reasonably have produced at least four billionaire families today. The Forbes 400 of 1982 should have generated at least 1,600 U.S. billionaire families.1,2
The lesson is clear
Mercer Advisors is purpose-built for this
Mercer Advisors is built for families whose financial lives are too important, and too complex, to be managed through disconnected advice. Our model integrates financial planning, investment management, tax planning and preparation, estate planning, insurance solutions, trustee services, and family office capabilities into one coordinated advisory experience.
The objective is not simply to grow assets. It is to preserve flexibility, manage taxes, protect against risk, support thoughtful spending, prepare the next generation, and transition wealth with purpose. That requires a unified team, a shared understanding of the family’s goals, and a living financial plan that guides every major decision.
Mercer Advisors is purpose-built for exactly this work: helping families simplify complexity, make better decisions, and pursue lasting Economic FreedomTM across generations.
1 “World’s Billionaires List: The Richest in 2026,” Forbes.com. Retrieved August 6, 2026.
2 “The Missing Billionaires,” Wiley, 2023.
All expressions of opinion reflect the judgment of the author as of the date of publication and are subject to change. Some of the research and ratings shown in this presentation come from third parties that are not affiliated with Mercer Advisors. The information is believed to be accurate but is not guaranteed or warranted by Mercer Advisors. Content, research, tools and stock or option symbols are for educational and illustrative purposes only and do not imply a recommendation or solicitation to buy or sell a particular security or to engage in any particular investment strategy. These links are being provided as a convenience and for informational purposes only; they do not constitute an endorsement or an approval by Mercer Advisors of any of the products, services or opinions of the corporations or organizations or individuals represented in the links. Mercer Advisors bears no responsibility for the accuracy, legality or content of the external sites or for that of subsequent links. Contact the external site for answers to questions regarding its content.
Mercer Advisors is not a law firm and does not provide legal advice to clients. All Estate planning document preparation and other legal advice are provided through select third parties, with which Mercer Advisors has a contractual relationship. Mercer Advisors Tax Services, LLC, does not provide financial audit, assurance, compilations, or forensic accounting services. Insurance products are provided by Mercer Advisors Insurance Services, LLC (MAIS), which places individual life, disability, long term care coverage, and property and casualty coverage through select insurance companies. Trustee services are offered through select third parties with which a client would sign an additional agreement, and additional fees may apply.
Tax preparation and filing services are provided by Mercer Advisors Tax Services, LLC. Clients will sign a separate agreement when engaging Mercer Advisors Tax Services that defines the services provided and any additional fees that may apply.
