If you're worth 100 million dollars, one mistake can cost you 1 million dollars.

[01:19]

"If you're worth a hundred million dollars, you might make a mistake that cost you a million dollars, and you could have hired a full-time team and had four to six professionals working for you just to avoid mistakes."

[00:28]

"There are really three types of family offices: a virtual family office for families that are worth, let's say, 10 to 50 million dollars, a single family office for those who want a dedicated full-time team, and then a multi-family office is really a wealth management firm that's focused on the needs of the ultra wealthy."

[01:46]

"If you're like me, you have dozens and dozens of LLCs and equity stakes. Just tracking those and making sure that your LLCs, your trust documents and everything stays updated and accurate is a part-time job in itself."

Full transcript

This is uh, video two in our series on how to create a family office here in Las Vegas, speaking at a conference on the same topic, and I wanted to Define what is a family office and why would you want one. Uh, first off, a family office is a ultra wealthy investment solution for families or individuals who are worth 10, 15, 20 million dollars, several hundred million dollars or several billion dollars. And there are really three types of family offices: a virtual family office for families that are worth, let's say, 10 to 50 million dollars. A single family office for those who want a dedicated full-time team.

And then a multi-family office is really a wealth management firm that's focused on the needs of the ultra wealthy and often serve 5, 10, 20 or several hundred clients that are are all ultra wealthy. So why would you want to have your own family office? There's many different reasons. One is that your problems become much more expensive and you're more likely to have complications and problems the wealthier you get.

If you're worth a million dollars and you make a small mistake on tax filing or structuring the deal. Well then, the cost of that might just be a hundred thousand dollars. You made a hundred thousand dollar mistake might be the worst mistake you could possibly make. Um, quite likely mistakes you make might cost you a thousand dollars or three thousand dollars.

If you're worth a hundred million dollars, you might make a mistake that cost you a million dollars and you could have hired a full-time team and had four to six professionals working for you just to avoid mistakes. Even if it didn't make you go faster or move with more conviction or due diligence deals or plan out things the Next Generation more, it would help to avoid those mistakes and just plain defense for you would have been worth it to have your own family office. Other reasons to have your own family office is that, if you're like me, you have dozens and dozens of llc's and Equity Stakes. Just tracking those and making sure that your LLCs, your trust documents and everything stays updated and accurate is a part-time job in itself.

Tracking deal closings, wire transfers, deadlines, regulatory letters, that are coming in every single day, probably, like me, you're getting letters from different states and different um government divisions about how this tax notice is due. Or here's your quarterly tax estimates from your CPA. Or here's the state of Colorado asking for workers compensation information now that you have an employee in Colorado, Etc. You also might have a lot of k1s that you get every year, a lot of k1s you need to put out every year.

You also also probably have a lot of travel going on, and the main point here is that when you have 30, 50 employees, 400 employees, thousands of employees, there's a lot going on with all the llc's equity Stakes you have, you're much more likely to make a mistake, and one mistake is very likely to cost you fifty thousand, three hundred thousand, a million dollars. And so you want to make less mistakes but also be better at playing offense. You want to figure out what's the best use of your energy. What are you passionate about?

Where do you make the most money? Where's the best Roi on your time and money? And that might be spending time with your family, and maximize that time. If you have a family office in place, then you can maximize the time of what makes you the most money or is going to be the most rewarding, personally or monetarily or philanthropically, best use of your time.

So those are the main reasons why you would want to have a family office and a little bit about what it is. Essentially, you're trying to holistically manage everything that touches your balance sheet, everything that you do financially, think about tax implications, about charitable giving, about next Generation planning, about your values, which we're going to talk about in the next video, and we have some free tools we're going to give you to use. Besides our book how to start a family office, we have our dashboard, and other tools are going to make this all relatively simple and straightforward, to at least get the very basics of a family office in place. By doing so, you'll be able to sleep better at night, knowing your planning's done well.

You'll be able to communicate what your plans and goals and values and vision is to others in your own family or key advisors like your CPA, or a wealth advisor or multi-family office you might hire to supplement your single-family office or virtual family office, and by focusing your energy to play a more very specific offensive game for your Investment Portfolio, you can also Shore up your defensive strategies and protect your wealth. So hope you enjoyed this video. Please move on now to watch our third video, which is on our family office dashboard tool and other things to consider when you're just getting started and creating your family office.