SFO Creation: The Ultimate Wealth & Legacy Protector
Understanding SFO Creation: Given growing global financial risks, families of exceptional wealth with their own dedicated, properly structured single family office stand the best chance of preserving and expanding their wealth over generations.
The vast majority of the more than 56,500 families around the world with net worth of $100 million and up and more than 16,500 with upwards of $250 million1 have yet to create a single family office (SFO). Many families understand that SFOs provide the ultimate in privacy, control and customization. Their resistance to creating one often stems from a mistaken belief that SFOs are exorbitantly expensive to operate than outsourced investing and other services. In fact, the costs of starting and running a family office—especially one that primarily retains its own dedicated direct investment staff—can be much lower than outsourcing to investment professionals/managers. The risks and opportunity costs of not having a single family office, which could be devastating to a family’s future wealth, dictate reconsideration of creating an SFO. This White Paper ascertains risks that today’s tumultuous global financial markets pose for families of exceptional wealth and identifies the many ways a properly structured SFO can best manage, if not mitigate, those risks.
SFO Creation Topics Covered
- Risks to Riches
- SFO Solutions for Potential Risks
- Costs: SFOs vs Allocations