How the largest fortunes disappear

No matter how much money you have, if you do nothing with them, there will be fewer of them. How much? If you count only inflation, approximately on 40% behind 10 years. And if you add costs? The more a person has, the more he spends. We rarely spend less than 2% his condition, more often the current expenses of a wealthy family are equal to 3-4% of the capital. Including costs for 20 years of your money will remain ... 16%. And the losses from failed projects, debts not returned by friends, charity, presents? While the main business brings super profits, you don't have to think about it. But the moment comes, when investment management becomes central. Solving it, usually, starts with the creation of a family office - a company, who should successfully invest the funds of a billionaire thinking about the future. Many family offices are built as "subsistence farming": they are designed to perform all functions from concierge service to portfolio management (the habit of controlling everything comes from the main business). As a result, a narrow range of products, poor results, «странные»

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