Whether youâre a newly minted tech billionaire in Silicon Valley or the owner of a family business in Asia experiencing exponential growth, youâre likely to face challenges in coming to terms with financial success. First-generation wealth owners are often ill prepared for the changes that come with new levels of wealth and their corresponding responsibilities, including how they might spend and invest their newly earned fortunes.
Many business owners come to realize that their interests are best served when management of the familyâs wealth is handled separately from the business. Management of family wealth is often eclipsed by the needs of the company, or improperly delegated to business executives who are not equipped to manage personal assets (a comical yet important lesson learned in the CBC Television series Schittâs Creek). Many families establish a family office to address their unique wealth and investment needs. This article will discuss investment management through the lens of a family office, but the information can also be applied more generally to individuals or families who choose not to establish a formal structure.