Centimillionaires.com

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Common Mistakes of Newly Wealthy Families

The most expensive mistakes after a liquidity event tend to happen in the first two years, before the family has a plan.

Mistakes we see often

  • Investing the proceeds quickly because cash feels idle.
  • Saying yes to friends' and relatives' deals without a screen.
  • Hiring a chief investment officer before the strategy is clear.
  • Running everything informally, with no written rules for spending or approvals.
  • Keeping advisers in separate silos so no one sees the full picture.

A better first year

Take time to set goals, map assets and decide how decisions will be made. Then build the office. See the biggest mistakes centimillionaires make, Part 1 and the 50 kick-off questions.

Educational only. Nothing on this site is investment, tax, legal, accounting or other professional advice, or a recommendation on any security, manager, structure or allocation. Speak with qualified professionals before acting.