How do family offices guide clients through a market crisis?
Short answer: Paul said families should plan for risk before a crisis and stick to the plan. Another panelist said to hold existing cash and watch economic indicators. Forrest said his firm was considering Roth conversions for some clients with tax-deferred accounts while markets were down 20 or 30 percent.
At a Family Office Club virtual investor discussion panel, Richard C. Wilson speaks with multi-family office managers about guiding clients through a market crisis.
Paul on planning before a crisis
Paul, who runs a firm based between Boston, London and Miami, said wealthy families should think intergenerationally and about charitable objectives. He said they should work through risks before a crisis, then stick to the plan. (at 5:23)
A panelist on holding cash
A panelist said his firm was not raising cash or selling in that market. It was holding the cash it already had and waiting for economic indicators. (at 6:49)
Forrest on cash and portfolio positioning
Forrest said his firm's portfolios were not contingent on public markets, and most of its clients had no dip in net worth during the crisis. He said clients had cash and access to capital. (at 7:46)
Forrest on Roth conversions
Forrest said his firm was looking at Roth conversions for some clients with tax deferred accounts while markets were down 20 or 30 percent. (at 8:13)
"these are the types of discussions and things you want to think through before a crisis not kind of in the middle of the crisis"
From Richard's exclusive Billionaires.com interviews
Lessons from Richard C. Wilson's one-on-one interviews, as published on each interview page.
- Anu Aga: Focus on one main cause. Her family found its giving more satisfying and impactful once it chose primary education for the underprivileged in India.
- Binod K. Chaudhary: Never chase a deal out of desperation. Stay cool and look at every part of the deal. Have your advisers and your finance team review it critically. Your counsel should review it too.
- Larry Connor: Learn from every mistake. Larry's team owns its failures and makes no excuses. They learn, change quickly, and keep getting better.
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Frequently asked questions
How do family offices guide clients through a market crisis?
Paul said families should plan for risk before a crisis and stick to the plan. Another panelist said to hold existing cash and watch economic indicators. Forrest said his firm was considering Roth conversions for some clients with tax-deferred accounts while markets were down 20 or 30 percent.
What did Forrest's firm handle beyond investing?
Forrest said his firm helped clients scale and exit businesses, and worked across different real estate asset types.
How did John say his team invested?
John said his team used public investments in the stock market and alternative investments, both direct and through syndications.
Sources
Quotes are copied from the video captions and checked against the transcript. Timestamps link to the moment in the video. General information only, not legal, tax or investment advice.