Startup Funding Espresso – Costs of Running a Family Office

Costs of Running a Family Office Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. There are costs to running a family office. Here's a list of cost categories to budget for: Professional costs including the services such as tax, accounting, and financial. Family expenses such as living expenses, travel, healthcare, and taxes. Facilities costs including communications, technology, and administrative overhead. Financial costs including advisory management fees, research, and reporting. Here are other factors to consider as well in estimating the cost: Complexity of portfolio -- the greater the number and variety of investments, the greater the cost to manage. Number of services -- the more services the family office provides, the greater the cost. Number of tax jurisdictions -- the more jurisdictions, the higher the cost. Number of legal entities -- the greater the number of legal entities, the higher the cost. A rule of thumb is that the cost of investments and family office costs should be no more than 1% to 2% of the family office assets. Check your family office to see how the costs compare to the assets. Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding. Let's go startup something today. _______________________________________________________ For more episodes from Investor Connect, please visit the site at: http://investorconnect.org Check out our other podcasts here: https://investorconnect.org/ For Investors check out: https://tencapital.group/investor-landing/ For Startups check out: https://tencapital.group/company-landing/ For eGuides check out: https://tencapital.group/education/ For upcoming Events, check out https://tencapital.group/events/ For Feedback please contact [email protected] Please follow, share, and leave a review. Music courtesy of Bensound.