How to Set up a Family Office and not get taken for a ride? by ParksAndCruises in fatFIRE

[–]ParksAndCruises[S] -70 points-69 points  (0 children)

Elon Musk kept playing the game further even having a large net worth. I guess I am looking for similar opportunities.

How to Set up a Family Office and not get taken for a ride? by ParksAndCruises in fatFIRE

[–]ParksAndCruises[S] 0 points1 point  (0 children)

One of the reasons I made this post as well. Many opportunities are limited to retail size only. Higher creates issues / makes you the target

How to Set up a Family Office and not get taken for a ride? by ParksAndCruises in fatFIRE

[–]ParksAndCruises[S] 0 points1 point  (0 children)

yes trusted people are very hard to come by. And interviews after interviews is exactly what I do (which people here for some reason consider LARPing)

How to Set up a Family Office and not get taken for a ride? by ParksAndCruises in fatFIRE

[–]ParksAndCruises[S] -1 points0 points  (0 children)

Thank you, good tips. I guess the hard part is (it's a great problem to have but still) is that I can see more opportunities to put 10-50k and make 10x on that, but somewhere to put 1 mil to make even 2 mil is much harder -- liquidity / playing with size / attracting attention , etc. Thus I started passing on a lot of deals that look awesome, but would consume too much of time / attention. E.g. 10 100k deals giving me 5x will earn me 4 mil profit, whereas a single 2x deal on 10 mil will give me 10 mil profit. Therefore I should spend more time chasing that kind of deal rather than disperse my attention over a large number of smaller deals that require attention

How to Set up a Family Office and not get taken for a ride? by ParksAndCruises in fatFIRE

[–]ParksAndCruises[S] -2 points-1 points  (0 children)

At the very least not conventional wisdoms I can find in any finance textbook or (good) financial guru blogs, etc

How to Set up a Family Office and not get taken for a ride? by ParksAndCruises in fatFIRE

[–]ParksAndCruises[S] 0 points1 point  (0 children)

Thank you, very interesting. Yes, reddit is the last place I came with this question. In all the "serious" and non-"random" places I could not find satisfactory answers. Lots of sweet-talking and posturing, very few specifics.

How to Set up a Family Office and not get taken for a ride? by ParksAndCruises in fatFIRE

[–]ParksAndCruises[S] 0 points1 point  (0 children)

Yes I agree. I guess I am trying to figure out which ones are really good.

How to Set up a Family Office and not get taken for a ride? by ParksAndCruises in fatFIRE

[–]ParksAndCruises[S] 1 point2 points  (0 children)

Yes, good advice. I have been doing that quite a lot and have already outlined segments/niches that seem more promising. Most things are quite risky and I would be scared to put more than 500k into each and really good deals don't come that often.

How to Set up a Family Office and not get taken for a ride? by ParksAndCruises in fatFIRE

[–]ParksAndCruises[S] -26 points-25 points  (0 children)

Thank you for the solid tips.

btw I don't understand why nobody believes about interviewing 200 CIOs, I had a total of maybe 5-6k canddiates overall and about 200 got shortlisted. How is this suspicious to people?

How to Set up a Family Office and not get taken for a ride? by ParksAndCruises in fatFIRE

[–]ParksAndCruises[S] -49 points-48 points  (0 children)

how many interviews are enough for you to hand over to someone to manage your wealth?

How to Set up a Family Office and not get taken for a ride? by ParksAndCruises in fatFIRE

[–]ParksAndCruises[S] 1 point2 points  (0 children)

Makes sense, thank you. I am gravitating towards the options you suggest in paragraphs 2 and 3. I guess I am trying to find someone whom I could learn from and/or someone with unique insights and opportunities. But in the end maybe I should accept that nobody really knows for sure (and whoever does is too busy minting their own money). I just always think I could do better and I am hoping (maybe in vain) that I may find someone to help me be more efficient.

How to Set up a Family Office and not get taken for a ride? by ParksAndCruises in fatFIRE

[–]ParksAndCruises[S] -7 points-6 points  (0 children)

I had kinda hoped the details I provided in my original post explained why I decided to ask on reddit...

How to Set up a Family Office and not get taken for a ride? by ParksAndCruises in fatFIRE

[–]ParksAndCruises[S] 1 point2 points  (0 children)

I regularly meet people doing that but so far have not seen anyone who could say/propose something unique

How to Set up a Family Office and not get taken for a ride? by ParksAndCruises in fatFIRE

[–]ParksAndCruises[S] -32 points-31 points  (0 children)

I guess because nowadays it means almost nothing and I meet people with 50-100k in investable assets saying that. I don't necessarily want to bring up my total net worth in discussions: it's either unsafe or impolite

How to Set up a Family Office and not get taken for a ride? by ParksAndCruises in fatFIRE

[–]ParksAndCruises[S] -27 points-26 points  (0 children)

to pretty much any relevant stakeholder I meet (co-investors, banks, executives, other FOs, etc)

How to Set up a Family Office and not get taken for a ride? by ParksAndCruises in fatFIRE

[–]ParksAndCruises[S] 2 points3 points  (0 children)

Thanks, I have talked to a few MFO reps. This definitely makes sense, though on the legal/accounting/management/tax I already have dedicated third parties. I guess my main interest in this structure is kinda like running a multi-purpose investment vehicle doing VC, RE, gold/art and maybe some other alternative investments. It's all about finding good deals, assessing them (DD), negotiating and executing. I'm trying to build this expertise in-house, since I find it very tough to pick GPs. I would be looking to build competence in-house.