In the latest Family Office Sherpa Podcast, I dig into one of the greatest challenges faced by the family - how to overcome decision making paralysis
When am I seeing this:
* There is a need to make wholesale changes to the operation of the family office
* The decision making family member is stepping away or looking to bring in the next generation.
* Uncertainty over the Future - how do families have a proper conversation about their legacy, purpose, values and goals in a way that is sensitive to all members.
What are the risks of doing nothing (across Family, Investments & Counterparties)
* Conflict and friction.
* Loss of continuity when moving to new wealth stewards.
* Wealth dilution
* Tax leakage and inefficiency
* Missed opportunities
* Liquidity issues
* Misalignment
* Higher costs
* Compliance issues
How do I see these risks mitigated:
* Have an Investment Policy with specific processes and guidelines for making decision.
* Clear mandates to advisers and internal staff.
* Warm hand vs cold hand
* Making it fun
* Utilise trusted advice
* Bring people into the tent now
* Have the hard conversations
* Aim for outcomes, not "nice chats" that go nowhere.
Above all – talk to each other, get a conversation going when the stakes are low, not when the proverbial has hit the fan.
For more insights into family offices and their investments, operations and technology, subscribe to the Sherpa newsletter at: hallroad.com.au.
Cheers
Shaun.
“Hall Road Investments Pty Ltd is a Corporate Authorised Representative (CAR No. 001279456) of Non Correlated Capital Pty Ltd (AFSL No. 499882). Shaun Parkin is an Authorised Representative (AR No 001279458) of Hall Road Investments Pty Ltd (CAR No. 001279456) and is authorised to provide general advice to wholesale investors”
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