The bottom-line reason the very wealthy are motivated to establish and manage single-family offices is that, when run well, they optimize their financial worlds. Moreover, these single-family offices are very often able to optimize all aspects of a wealthy family’s world.
However, like everyone else, the very wealthy have constraints, including the following:
• Significant health issues and concerns for themselves or loved ones.
• Dysfunctional family members who are disruptive to the family and business interests, but who are nevertheless deeply loved and protected.
• Obligations to multiple ex-spouses and current and former lovers, as well as children from these unions and assignations.
A great many of these constraints are self-imposed. It is within these restrictions or limitations that exceptional single-family offices are able to get the best possible outcomes. Simply put, high-performing single-family offices optimize the financial worlds of the families that establish them.
An honest evaluation of your single-family office will help you understand not only how well it is performing now, but give you an understanding of the potential of a high-performing single-family office to optimize your financial world.
The following questionnaire provides a good starting point for such a self-evaluation. Each statement should be marked with a numeral between 1 and 10, with 1 meaning the statement is not at all accurate, and 10 meaning the statement is extremely accurate.
_____ The senior executives in my single-family office really understand me as a person, including my hopes and dreams, concerns and anxieties.
_____ The senior executives in my single-family office are very good at explaining complex concepts, ideas, opportunities and solutions to me and to others.
_____ I have a sincere and trusting relationship with the senior executives of my single-family office.
_____ My single-family office is consistently able to access best-of-class expertise and solutions.