The talents required for family wealth management differ significantly from those needed to create riches in the first place. Thus, many families entrust financial capital control to accounting professionals and wealth managers.
Setting up a multi family office in Singapore has advantages similar to outsourcing to a group of consultants or using a multifamily agency. Here are five things to think about before establishing a family office.
1. Recognise Your Assets
The company is the only glue that holds an expanding, dispersed family together without an organised, autonomous approach to managing family assets. While legal and emotional stakeholders may want to retain their identity and closeness, they risk missing out on ways to grow, develop, or acquire. Setting up a family office can help with this problem, but it comes at a high cost.
2. Distribute Responsibilities
Aside from the significant fixed annual expense of establishing a family office, finding the proper personnel to administer it might be difficult.
A well-run family office can do far more than assessing your financial assets; it can also assist you in taking a global view of your best practices, facilitating autonomous family communication, and improving decision-making.
3. Seek the advice of an independent family expert, business advisor, or wealth consultant.
It's critical to assess how your office is operated frequently; try to approach it as if you're creating a successful and flexible process instead of a set of strict rules. The family's long-term wellness and commercial interests should be a key concern in each operating decision.
Look for ultra high net worth wealth management experts that look after your priorities and not on their interests.
Finally, Clarify Your Investment Goals
Examine how your money is divided between long-term and short-term investments, and make sure you have processes in place to facilitate quick transfers (liquidity) when your family needs it.
Generate reports that spell out the family's goals, objectives, priorities, values, mission, and background. These will serve as a model for any future investment initiatives. They should be written with future generations in mind.
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