Family Office Views on Governance and Generational Wealth
Richard C. Wilson hosts a panel of family office wealth managers discussing how they advise families on wealth and governance.
Richard C. Wilson's video features a panel of family office professionals discussing how families make decisions about wealth across generations. One panelist says their group expects a federally tax-free 10% return from a credit fund by year three. They consider how advisors can help families communicate, set expectations and understand the choices before them.
In this video: Richard C. Wilson (Host), Family office panelists (Family office wealth managers)
What they said
- Panelists on family investment decisions. One panelist says families need a process for who makes investment decisions and when. They warn that one poorly considered decision can put family wealth at risk.
- Family communications and long-term governance. A panelist says family communications should be established well before current decision makers are gone. In their view, those communications can carry on and support governance across generations.
- A panelist on voice and decision authority. One panelist distinguishes having a voice from having a say. They say families should understand each stakeholder's expectations and avoid promising more influence than they have.
- Panelists compare credit and real estate returns. A panelist says their group expects a federally tax-free 10% return from a credit fund by year three, describing it as a tax equivalent 16% return. They compare that with seeking a 15% return in a value-add real estate deal to discuss return per unit of risk.
- Panelists on moving from business to markets. One panelist says successful business builders may assume they know how to deploy capital because they excelled in their original business. Another describes the anxiety clients can feel when moving from a familiar business into markets they know less well.
In their words
"there's a difference between having a voice and having a say."
"family communications leads to effective governance"
Why it matters if you are building or preserving great wealth
One panelist imagines a future family decision maker putting everything into crypto, then needing to withdraw when it is worth half as much. That example connects governance to how a single choice can affect the family when it needs the money.
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
What example does a panelist give of teaching families about risk?
One panelist describes a credit fund with an expected federally tax-free 10% return by year three, which they call a tax equivalent 16% return. They compare it with seeking a 15% return in a value-add real estate deal and say the comparison helps families discuss return per unit of risk.
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.