Jan. 13, 2026
141: 5 Reasons You Should Not Start a Micro Family Office
Most people listenins to this episode should not build their own wealth management infrastructure. And hearing that upfront might save you from a very expensive mistake.
Managing an $8M Micro Family Office has taught me something most content in this space avoids saying out loud: this approach is incredibly powerful—but only for a very specific type of person. If even one of five key conditions applies to you, building a Micro Family Office will likely create more friction than freedom. But if none of them apply, managing your wealth like a business may be the highest-return decision you ever make.
In this episode, I walk through the five reasons you should not build a Micro Family Office—covering mindset, time commitment, tax strategy, portfolio structure, and asset scale. This isn’t hype or theory. It’s a reality check based on running my own portfolio with a CEO-level operating model, where income, growth, and preservation work together as a single system.
You’ll hear why passive, “set it and forget it” investors are better served by traditional advisors, why proactive tax strategy can quietly add tens of thousands of dollars per year to your bottom line, and why portfolios under $1M usually don’t justify the infrastructure required. We’ll also break down the real weekly time commitment, what “active ownership” actually looks like, and the critical difference between drawdown portfolios and Evergreen Portfolios designed to fund life without selling assets.
This conversation reframes wealth entirely: a multi-million-dollar portfolio isn’t just an account—it’s a business. One capable of generating six figures in annual income with a fraction of the effort most people spent building their careers. The question isn’t whether you’re capable of running it. It’s whether this model truly fits how you want to live, think, and engage with your money.
If you’re frustrated with cookie-cutter advice, want real control over your financial future, and are serious about building generational wealth—not just spending it down—this episode will help you decide, clearly and honestly, whether a Micro Family Office is the right path for you.
Transcript
WEBVTT
00:00.031 --> 00:09.597
[SPEAKER_00]: I manage an 8 million dollar micro family office and I'm about to tell you something that will save some of you from a very expensive mistake.
00:09.978 --> 00:16.015
[SPEAKER_00]: Most people watching this video should not build their own wealth management infrastructure.
00:15.995 --> 00:26.705
[SPEAKER_00]: Not because you're not smart enough, you've built the wealth, you're clearly capable, but there are five dealbreakers that make this approach completely wrong for certain people.
00:27.005 --> 00:33.591
[SPEAKER_00]: And even if one of these five apply to you, you're better off not building a micro family office.
00:33.792 --> 00:38.056
[SPEAKER_00]: And instead, stick with a traditional management and save yourself the headaches.
00:38.436 --> 00:44.922
[SPEAKER_00]: But if none of them apply, you're in the rare position where managing your wealth like a business,
00:44.902 --> 00:45.983
[SPEAKER_00]: isn't just smart.
00:46.644 --> 00:50.767
[SPEAKER_00]: It's likely the highest return decision you will ever make with your money.
00:51.028 --> 00:58.294
[SPEAKER_00]: So let's cut through the hype and let me walk you through the five reasons that you should not start a micro family office.
00:58.594 --> 01:02.938
[SPEAKER_00]: By the end, you will know exactly whether this is your path or not.
01:03.158 --> 01:04.039
[SPEAKER_00]: Quick background.
01:04.580 --> 01:05.641
[SPEAKER_00]: I'm Christopher Nelson.
01:05.861 --> 01:13.828
[SPEAKER_00]: I've been through three IPOs as a tech exec and I've spent the past four and a half years running my own micro family office.
01:13.808 --> 01:25.943
[SPEAKER_00]: Today, my portfolio is 47% allocated to income investments that generates over $200,000 per year in cash flow that covers all my family's essential expenses.
01:25.963 --> 01:32.131
[SPEAKER_00]: 47 is allocated to growth investments, which have grown the principle from six to eight million dollars.
01:32.492 --> 01:40.542
[SPEAKER_00]: And 5% is allocated to capital preservation so that I have dry powder in case any interesting opportunities arise.
01:40.522 --> 01:49.916
[SPEAKER_00]: The microfamily office structure allowed me to retire at 51 and focus on the things that matter most to me, my family and my health.
01:49.936 --> 01:52.641
[SPEAKER_00]: But like I said, it's not the path for everyone.
01:52.981 --> 01:57.047
[SPEAKER_00]: Reason number one, that you should not start a microfamily office.
01:57.067 --> 02:02.215
[SPEAKER_00]: And that's if you prefer a passive, set it and forget it, approach to managing your wealth.
02:02.416 --> 02:03.377
[SPEAKER_00]: Look, I get it.
02:03.678 --> 02:05.280
[SPEAKER_00]: You worked hard to build a wealth.
02:05.260 --> 02:08.444
[SPEAKER_00]: The last thing that you want is more work.
02:08.724 --> 02:16.974
[SPEAKER_00]: So if you can't see yourself allocating time every week to running your microfamily office, then stick with the traditional financial advisor.
02:17.415 --> 02:18.777
[SPEAKER_00]: There is no shame in that.
02:18.977 --> 02:22.641
[SPEAKER_00]: Here's what most people don't understand about running a microfamily office.
02:22.882 --> 02:23.983
[SPEAKER_00]: You are the CEO.
02:24.504 --> 02:32.213
[SPEAKER_00]: You're making strategic decisions about asset allocation, evaluating investments, coordinating with tax strategists,
02:32.193 --> 02:34.036
[SPEAKER_00]: you're not doing everything yourself.
02:34.677 --> 02:39.505
[SPEAKER_00]: You build a team of fractional advisors, but you are driving the strategy.
02:39.685 --> 02:43.311
[SPEAKER_00]: I had a friend, a successful doctor with $5 million in asset.
02:43.912 --> 02:48.480
[SPEAKER_00]: When I told him about this approach, he said, I just want somebody to handle this for me.
02:49.021 --> 02:50.083
[SPEAKER_00]: I don't want to think about it.
02:50.203 --> 02:52.767
[SPEAKER_00]: And that was the right answer for him.
02:52.747 --> 03:00.058
[SPEAKER_00]: if you're not willing to be actively involved in the big strategic decisions, then you're better off with traditional wealth management.
03:00.278 --> 03:06.808
[SPEAKER_00]: The microfamily office is for people who want control, who see their portfolio as a business to be run.
03:07.069 --> 03:09.372
[SPEAKER_00]: If that's not you, this is not your path.
03:09.652 --> 03:19.047
[SPEAKER_00]: So reason number two, you're not interested in optimizing your wealth to save an additional 20,000 to $50,000 per year in taxes.
03:19.467 --> 03:22.011
[SPEAKER_00]: Let me give you a real example.
03:21.991 --> 03:27.943
[SPEAKER_00]: Last year, I had an investment exit that put $250,000 back in my pocket.
03:28.404 --> 03:30.929
[SPEAKER_00]: Now, normally, that's a taxable event.
03:31.250 --> 03:35.519
[SPEAKER_00]: 20% capital gains means $50,000 to the IRS.
03:35.759 --> 03:39.527
[SPEAKER_00]: But because I've been working with a tax strategist for years,
03:39.507 --> 03:42.392
[SPEAKER_00]: I had tax assets already in place.
03:42.973 --> 03:48.381
[SPEAKER_00]: In this case, depreciation that I'd been accruing that I could deploy against that gain.
03:48.962 --> 03:53.149
[SPEAKER_00]: So the result, $250,000 tax free.
03:53.169 --> 03:56.615
[SPEAKER_00]: That $50,000 did not go to the IRS.
03:56.995 --> 03:59.299
[SPEAKER_00]: It stayed in my portfolio compounding.
03:59.519 --> 04:00.721
[SPEAKER_00]: And here's what most people miss.
04:01.422 --> 04:05.008
[SPEAKER_00]: I didn't scramble to figure this out when the exit happened.
04:04.988 --> 04:10.236
[SPEAKER_00]: The strategy was already built, so when the opportunity came, I just executed.
04:10.276 --> 04:14.622
[SPEAKER_00]: That's the difference between a tax filing and a tax strategy.
04:15.424 --> 04:16.545
[SPEAKER_00]: Filing is reactive.
04:17.166 --> 04:20.431
[SPEAKER_00]: Strategy means you're ready before the moment arrives.
04:20.772 --> 04:24.297
[SPEAKER_00]: If you're fine paying whatever the tax bill is when it shows up,
04:24.277 --> 04:32.810
[SPEAKER_00]: You don't need this, but if you want to be positioned when those moments come, that's what proactive tax planning and a microfamily office gives to you.
04:33.150 --> 04:34.472
[SPEAKER_00]: Let's move to reason number three.
04:34.692 --> 04:41.462
[SPEAKER_00]: If you're below $1 million in investable assets, then the math might not pencil out for this to make sense.
04:41.843 --> 04:47.331
[SPEAKER_00]: Building a microfamily office involves legal structures, specialized advisors, and your time.
04:47.311 --> 04:51.300
[SPEAKER_00]: all of this can run between $5,000 to $25,000 a year.
04:51.681 --> 04:57.073
[SPEAKER_00]: And I'd say it's a good rule of thumb that this is about a half a percent in ongoing annual costs.
04:57.093 --> 05:04.290
[SPEAKER_00]: So if you have $500,000 in assets, that's a two to three percent of your assets in one year cost.
05:04.270 --> 05:05.512
[SPEAKER_00]: that does not make sense.
05:05.712 --> 05:12.484
[SPEAKER_00]: You're better off with a traditional advisor charging 1% and building your wealth until you cross that million dollar threshold.
05:12.885 --> 05:22.060
[SPEAKER_00]: But once you're at a million dollar or above in investible assets, especially as you move towards 3 million, 5 million and 10 million plus,
05:22.040 --> 05:23.962
[SPEAKER_00]: the economics flip completely.
05:24.162 --> 05:28.586
[SPEAKER_00]: The year one tax savings alone often covers the setup cost.
05:28.846 --> 05:35.752
[SPEAKER_00]: And if you're not there yet, focus on building well first, get to that million dollar mark, then consider this.
05:36.153 --> 05:43.099
[SPEAKER_00]: Now, reason number four is you're not willing to devote two to four hours per week running your micro family office.
05:43.119 --> 05:46.061
[SPEAKER_00]: Notice I said a few hours per week, not per day.
05:46.422 --> 05:50.005
[SPEAKER_00]: This isn't a full-time job unless you want it to be.
05:49.985 --> 05:51.949
[SPEAKER_00]: Here's my typical week.
05:51.969 --> 06:01.706
[SPEAKER_00]: A few hours doing some options trading, maybe an hour reviewing my overall portfolio, and now we're syncing with my fractional team, such as my bookkeeper or tax strategist.
06:02.007 --> 06:03.569
[SPEAKER_00]: Most of that time is front-loaded.
06:04.150 --> 06:08.398
[SPEAKER_00]: The big investment is setting up your structures and finding advisors.
06:08.378 --> 06:11.701
[SPEAKER_00]: Once that foundation is in place, you're just maintaining.
06:12.142 --> 06:17.608
[SPEAKER_00]: So if you're grinding 80 hour weeks or have young kids in zero margin, I get it.
06:18.288 --> 06:19.810
[SPEAKER_00]: The timing might not be right.
06:20.150 --> 06:28.319
[SPEAKER_00]: But if you want to carve out a few hours a week and you want to understand how to make your money work for you, this becomes incredibly doable.
06:28.599 --> 06:32.083
[SPEAKER_00]: For most people, the question isn't whether you have the time.
06:32.243 --> 06:34.545
[SPEAKER_00]: It's whether you're willing to make the time.
06:34.825 --> 06:36.327
[SPEAKER_00]: Here's a quick test.
06:36.307 --> 06:38.150
[SPEAKER_00]: open the screen time app on your phone.
06:38.730 --> 06:42.896
[SPEAKER_00]: Now look at how much time you've spent on random apps in the past week.
06:42.916 --> 06:46.621
[SPEAKER_00]: That's part of the time that you could be building your micro family office.
06:46.641 --> 06:53.711
[SPEAKER_00]: Now moving on to the last one, reason number five, you prefer a drawdown portfolio over an evergreen portfolio.
06:53.931 --> 06:56.715
[SPEAKER_00]: A drawdown portfolio is what most advisors build.
06:57.176 --> 07:02.483
[SPEAKER_00]: You accumulate a big pile of money and sell 4% annually to fund your lifestyle.
07:02.463 --> 07:04.647
[SPEAKER_00]: This is the famous 4% rule.
07:04.667 --> 07:07.593
[SPEAKER_00]: The problem, your assets are constantly shrinking.
07:08.194 --> 07:11.762
[SPEAKER_00]: And if the market crashes when you retire, you're in trouble.
07:12.022 --> 07:19.216
[SPEAKER_00]: Microfamily office CEOs structure their portfolio around one core principle, never sell assets to fund your life.
07:19.597 --> 07:20.539
[SPEAKER_00]: How?
07:20.519 --> 07:23.106
[SPEAKER_00]: they build what I call an evergreen portfolio.
07:23.568 --> 07:27.017
[SPEAKER_00]: It has three categories working together like a financial engine.
07:27.298 --> 07:29.063
[SPEAKER_00]: Category one, growth.
07:29.083 --> 07:33.676
[SPEAKER_00]: This is your public equities, stock, index fund, growth oriented investments.
07:33.696 --> 07:35.541
[SPEAKER_00]: This is where most people stop.
07:35.521 --> 07:39.528
[SPEAKER_00]: But any microfamily office, this is only one third of the equation.
07:39.848 --> 07:42.132
[SPEAKER_00]: Category two, capital preservation.
07:42.332 --> 07:45.558
[SPEAKER_00]: This is your bonds, cash reserves, stable value assets.
07:45.838 --> 07:51.708
[SPEAKER_00]: The goal isn't to make money, it's to protect what you have and provide liquidity when you need it.
07:52.008 --> 07:55.053
[SPEAKER_00]: And here's the missing link, Category three, income.
07:55.274 --> 07:58.980
[SPEAKER_00]: This is the category that most financial advisors never talk about.
07:58.960 --> 08:17.373
[SPEAKER_00]: This is where you invest in assets that generate constant cash flow, real estate, covered call ETFs, structured notes, private debt, dividend stocks, mobile home park funds, and reads, just to name a few, having category three assets means that you never touch categories one or two.
08:17.994 --> 08:21.019
[SPEAKER_00]: You live off the cash flow, not the drawdown.
08:20.999 --> 08:39.818
[SPEAKER_00]: So, if you're completely comfortable with the drawdown model, you don't need a microfamily office, but if you want to build an income generating machine that you never have to sell and you can pass on to your kids, that requires a different approach, ask yourself, do you want to slowly spend on your wealth or build generational income?
08:40.239 --> 08:46.585
[SPEAKER_00]: So, even if one of those reasons resonated, traditional wealth management might be your best path.
08:46.565 --> 08:59.595
[SPEAKER_00]: but you should build a micro family office if you have at least $1 million in investable assets and want to understand how your wealth works can commit five to 10 hours a week to strategic oversight.
08:59.876 --> 09:05.248
[SPEAKER_00]: Our frustrated with cookie cutter advice want control over your financial future.
09:05.228 --> 09:09.335
[SPEAKER_00]: and likely the most important you want to build generation wealth.
09:09.615 --> 09:11.278
[SPEAKER_00]: Here's the shift that changes everything.
09:11.518 --> 09:15.064
[SPEAKER_00]: A multi-million dollar portfolio is a business.
09:15.385 --> 09:19.171
[SPEAKER_00]: One that can generate six figures or more in annual income.
09:19.331 --> 09:22.917
[SPEAKER_00]: Think about what you did to earn six figures in your career.
09:22.897 --> 09:36.196
[SPEAKER_00]: 60 hour weeks, miss dinners, post-pone vacations, decades of grinding, but that wealth business sitting in your accounts right now, the one with millions and assets, you treat it like a side project.
09:36.396 --> 09:51.537
[SPEAKER_00]: And to me, this is backwards because with a fraction of the effort that you put into somebody else's business, you could be managing the one asset that actually reshaves your life.
09:51.517 --> 10:00.830
[SPEAKER_00]: But looking back, all it took was applying the same systematic thinking I used professionally to my own wealth instead of building somebody else's company.
10:01.190 --> 10:05.516
[SPEAKER_00]: Same skills, different application, completely different outcome.
10:05.896 --> 10:06.938
[SPEAKER_00]: So here's my challenge.
10:07.719 --> 10:10.082
[SPEAKER_00]: Go back through those five reasons.
10:10.433 --> 10:12.155
[SPEAKER_00]: be honest with yourself.
10:12.476 --> 10:15.961
[SPEAKER_00]: If they apply to you, traditional wealth management is fine.
10:16.381 --> 10:18.324
[SPEAKER_00]: There is no shame in that.
10:18.484 --> 10:22.009
[SPEAKER_00]: But if you went through all five and thought, none of these are me.
10:22.029 --> 10:23.671
[SPEAKER_00]: I do want ownership.
10:23.851 --> 10:25.774
[SPEAKER_00]: I do care about reducing taxes.
10:26.014 --> 10:27.396
[SPEAKER_00]: I am above a million.
10:27.917 --> 10:36.188
[SPEAKER_00]: I can commit the time, and I do want an evergreen portfolio, then you're exactly who should build a micro family office.
10:36.168 --> 10:45.180
[SPEAKER_00]: And if that's you, I would love to have you at our next live workshop where we break down the architect phase of building a microfamily office in detail.
10:45.420 --> 10:54.953
[SPEAKER_00]: You will learn how to architect your portfolio strategy using the Evergreen Framework, build the operational infrastructure just like a real family office.
10:54.933 --> 10:58.618
[SPEAKER_00]: and run your wealth systematically without it consuming your life.
10:59.019 --> 11:08.313
[SPEAKER_00]: So if this sounds like the next step in your wealth journey, you want to go to wealthops.io forward slash go and sign up for our next event.
11:08.673 --> 11:13.961
[SPEAKER_00]: After that, you can check out this video if you want to learn more about the micro family office concept.
11:14.943 --> 11:15.844
[SPEAKER_00]: See you in the next one.
00:00.031 --> 00:09.597
[SPEAKER_00]: I manage an 8 million dollar micro family office and I'm about to tell you something that will save some of you from a very expensive mistake.
00:09.978 --> 00:16.015
[SPEAKER_00]: Most people watching this video should not build their own wealth management infrastructure.
00:15.995 --> 00:26.705
[SPEAKER_00]: Not because you're not smart enough, you've built the wealth, you're clearly capable, but there are five dealbreakers that make this approach completely wrong for certain people.
00:27.005 --> 00:33.591
[SPEAKER_00]: And even if one of these five apply to you, you're better off not building a micro family office.
00:33.792 --> 00:38.056
[SPEAKER_00]: And instead, stick with a traditional management and save yourself the headaches.
00:38.436 --> 00:44.922
[SPEAKER_00]: But if none of them apply, you're in the rare position where managing your wealth like a business,
00:44.902 --> 00:45.983
[SPEAKER_00]: isn't just smart.
00:46.644 --> 00:50.767
[SPEAKER_00]: It's likely the highest return decision you will ever make with your money.
00:51.028 --> 00:58.294
[SPEAKER_00]: So let's cut through the hype and let me walk you through the five reasons that you should not start a micro family office.
00:58.594 --> 01:02.938
[SPEAKER_00]: By the end, you will know exactly whether this is your path or not.
01:03.158 --> 01:04.039
[SPEAKER_00]: Quick background.
01:04.580 --> 01:05.641
[SPEAKER_00]: I'm Christopher Nelson.
01:05.861 --> 01:13.828
[SPEAKER_00]: I've been through three IPOs as a tech exec and I've spent the past four and a half years running my own micro family office.
01:13.808 --> 01:25.943
[SPEAKER_00]: Today, my portfolio is 47% allocated to income investments that generates over $200,000 per year in cash flow that covers all my family's essential expenses.
01:25.963 --> 01:32.131
[SPEAKER_00]: 47 is allocated to growth investments, which have grown the principle from six to eight million dollars.
01:32.492 --> 01:40.542
[SPEAKER_00]: And 5% is allocated to capital preservation so that I have dry powder in case any interesting opportunities arise.
01:40.522 --> 01:49.916
[SPEAKER_00]: The microfamily office structure allowed me to retire at 51 and focus on the things that matter most to me, my family and my health.
01:49.936 --> 01:52.641
[SPEAKER_00]: But like I said, it's not the path for everyone.
01:52.981 --> 01:57.047
[SPEAKER_00]: Reason number one, that you should not start a microfamily office.
01:57.067 --> 02:02.215
[SPEAKER_00]: And that's if you prefer a passive, set it and forget it, approach to managing your wealth.
02:02.416 --> 02:03.377
[SPEAKER_00]: Look, I get it.
02:03.678 --> 02:05.280
[SPEAKER_00]: You worked hard to build a wealth.
02:05.260 --> 02:08.444
[SPEAKER_00]: The last thing that you want is more work.
02:08.724 --> 02:16.974
[SPEAKER_00]: So if you can't see yourself allocating time every week to running your microfamily office, then stick with the traditional financial advisor.
02:17.415 --> 02:18.777
[SPEAKER_00]: There is no shame in that.
02:18.977 --> 02:22.641
[SPEAKER_00]: Here's what most people don't understand about running a microfamily office.
02:22.882 --> 02:23.983
[SPEAKER_00]: You are the CEO.
02:24.504 --> 02:32.213
[SPEAKER_00]: You're making strategic decisions about asset allocation, evaluating investments, coordinating with tax strategists,
02:32.193 --> 02:34.036
[SPEAKER_00]: you're not doing everything yourself.
02:34.677 --> 02:39.505
[SPEAKER_00]: You build a team of fractional advisors, but you are driving the strategy.
02:39.685 --> 02:43.311
[SPEAKER_00]: I had a friend, a successful doctor with $5 million in asset.
02:43.912 --> 02:48.480
[SPEAKER_00]: When I told him about this approach, he said, I just want somebody to handle this for me.
02:49.021 --> 02:50.083
[SPEAKER_00]: I don't want to think about it.
02:50.203 --> 02:52.767
[SPEAKER_00]: And that was the right answer for him.
02:52.747 --> 03:00.058
[SPEAKER_00]: if you're not willing to be actively involved in the big strategic decisions, then you're better off with traditional wealth management.
03:00.278 --> 03:06.808
[SPEAKER_00]: The microfamily office is for people who want control, who see their portfolio as a business to be run.
03:07.069 --> 03:09.372
[SPEAKER_00]: If that's not you, this is not your path.
03:09.652 --> 03:19.047
[SPEAKER_00]: So reason number two, you're not interested in optimizing your wealth to save an additional 20,000 to $50,000 per year in taxes.
03:19.467 --> 03:22.011
[SPEAKER_00]: Let me give you a real example.
03:21.991 --> 03:27.943
[SPEAKER_00]: Last year, I had an investment exit that put $250,000 back in my pocket.
03:28.404 --> 03:30.929
[SPEAKER_00]: Now, normally, that's a taxable event.
03:31.250 --> 03:35.519
[SPEAKER_00]: 20% capital gains means $50,000 to the IRS.
03:35.759 --> 03:39.527
[SPEAKER_00]: But because I've been working with a tax strategist for years,
03:39.507 --> 03:42.392
[SPEAKER_00]: I had tax assets already in place.
03:42.973 --> 03:48.381
[SPEAKER_00]: In this case, depreciation that I'd been accruing that I could deploy against that gain.
03:48.962 --> 03:53.149
[SPEAKER_00]: So the result, $250,000 tax free.
03:53.169 --> 03:56.615
[SPEAKER_00]: That $50,000 did not go to the IRS.
03:56.995 --> 03:59.299
[SPEAKER_00]: It stayed in my portfolio compounding.
03:59.519 --> 04:00.721
[SPEAKER_00]: And here's what most people miss.
04:01.422 --> 04:05.008
[SPEAKER_00]: I didn't scramble to figure this out when the exit happened.
04:04.988 --> 04:10.236
[SPEAKER_00]: The strategy was already built, so when the opportunity came, I just executed.
04:10.276 --> 04:14.622
[SPEAKER_00]: That's the difference between a tax filing and a tax strategy.
04:15.424 --> 04:16.545
[SPEAKER_00]: Filing is reactive.
04:17.166 --> 04:20.431
[SPEAKER_00]: Strategy means you're ready before the moment arrives.
04:20.772 --> 04:24.297
[SPEAKER_00]: If you're fine paying whatever the tax bill is when it shows up,
04:24.277 --> 04:32.810
[SPEAKER_00]: You don't need this, but if you want to be positioned when those moments come, that's what proactive tax planning and a microfamily office gives to you.
04:33.150 --> 04:34.472
[SPEAKER_00]: Let's move to reason number three.
04:34.692 --> 04:41.462
[SPEAKER_00]: If you're below $1 million in investable assets, then the math might not pencil out for this to make sense.
04:41.843 --> 04:47.331
[SPEAKER_00]: Building a microfamily office involves legal structures, specialized advisors, and your time.
04:47.311 --> 04:51.300
[SPEAKER_00]: all of this can run between $5,000 to $25,000 a year.
04:51.681 --> 04:57.073
[SPEAKER_00]: And I'd say it's a good rule of thumb that this is about a half a percent in ongoing annual costs.
04:57.093 --> 05:04.290
[SPEAKER_00]: So if you have $500,000 in assets, that's a two to three percent of your assets in one year cost.
05:04.270 --> 05:05.512
[SPEAKER_00]: that does not make sense.
05:05.712 --> 05:12.484
[SPEAKER_00]: You're better off with a traditional advisor charging 1% and building your wealth until you cross that million dollar threshold.
05:12.885 --> 05:22.060
[SPEAKER_00]: But once you're at a million dollar or above in investible assets, especially as you move towards 3 million, 5 million and 10 million plus,
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[SPEAKER_00]: the economics flip completely.
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[SPEAKER_00]: The year one tax savings alone often covers the setup cost.
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[SPEAKER_00]: And if you're not there yet, focus on building well first, get to that million dollar mark, then consider this.
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[SPEAKER_00]: Now, reason number four is you're not willing to devote two to four hours per week running your micro family office.
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[SPEAKER_00]: Notice I said a few hours per week, not per day.
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[SPEAKER_00]: This isn't a full-time job unless you want it to be.
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[SPEAKER_00]: Here's my typical week.
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[SPEAKER_00]: A few hours doing some options trading, maybe an hour reviewing my overall portfolio, and now we're syncing with my fractional team, such as my bookkeeper or tax strategist.
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[SPEAKER_00]: Most of that time is front-loaded.
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[SPEAKER_00]: The big investment is setting up your structures and finding advisors.
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[SPEAKER_00]: Once that foundation is in place, you're just maintaining.
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[SPEAKER_00]: So if you're grinding 80 hour weeks or have young kids in zero margin, I get it.
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[SPEAKER_00]: The timing might not be right.
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[SPEAKER_00]: But if you want to carve out a few hours a week and you want to understand how to make your money work for you, this becomes incredibly doable.
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[SPEAKER_00]: For most people, the question isn't whether you have the time.
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[SPEAKER_00]: It's whether you're willing to make the time.
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[SPEAKER_00]: Here's a quick test.
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[SPEAKER_00]: open the screen time app on your phone.
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[SPEAKER_00]: Now look at how much time you've spent on random apps in the past week.
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[SPEAKER_00]: That's part of the time that you could be building your micro family office.
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[SPEAKER_00]: Now moving on to the last one, reason number five, you prefer a drawdown portfolio over an evergreen portfolio.
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[SPEAKER_00]: A drawdown portfolio is what most advisors build.
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[SPEAKER_00]: You accumulate a big pile of money and sell 4% annually to fund your lifestyle.
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[SPEAKER_00]: This is the famous 4% rule.
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[SPEAKER_00]: The problem, your assets are constantly shrinking.
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[SPEAKER_00]: And if the market crashes when you retire, you're in trouble.
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[SPEAKER_00]: Microfamily office CEOs structure their portfolio around one core principle, never sell assets to fund your life.
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[SPEAKER_00]: How?
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[SPEAKER_00]: they build what I call an evergreen portfolio.
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[SPEAKER_00]: It has three categories working together like a financial engine.
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[SPEAKER_00]: Category one, growth.
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[SPEAKER_00]: This is your public equities, stock, index fund, growth oriented investments.
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[SPEAKER_00]: This is where most people stop.
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[SPEAKER_00]: But any microfamily office, this is only one third of the equation.
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[SPEAKER_00]: Category two, capital preservation.
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[SPEAKER_00]: This is your bonds, cash reserves, stable value assets.
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[SPEAKER_00]: The goal isn't to make money, it's to protect what you have and provide liquidity when you need it.
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[SPEAKER_00]: And here's the missing link, Category three, income.
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[SPEAKER_00]: This is the category that most financial advisors never talk about.
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[SPEAKER_00]: This is where you invest in assets that generate constant cash flow, real estate, covered call ETFs, structured notes, private debt, dividend stocks, mobile home park funds, and reads, just to name a few, having category three assets means that you never touch categories one or two.
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[SPEAKER_00]: You live off the cash flow, not the drawdown.
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[SPEAKER_00]: So, if you're completely comfortable with the drawdown model, you don't need a microfamily office, but if you want to build an income generating machine that you never have to sell and you can pass on to your kids, that requires a different approach, ask yourself, do you want to slowly spend on your wealth or build generational income?
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[SPEAKER_00]: So, even if one of those reasons resonated, traditional wealth management might be your best path.
08:46.565 --> 08:59.595
[SPEAKER_00]: but you should build a micro family office if you have at least $1 million in investable assets and want to understand how your wealth works can commit five to 10 hours a week to strategic oversight.
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[SPEAKER_00]: Our frustrated with cookie cutter advice want control over your financial future.
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[SPEAKER_00]: and likely the most important you want to build generation wealth.
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[SPEAKER_00]: Here's the shift that changes everything.
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[SPEAKER_00]: A multi-million dollar portfolio is a business.
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[SPEAKER_00]: One that can generate six figures or more in annual income.
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[SPEAKER_00]: Think about what you did to earn six figures in your career.
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[SPEAKER_00]: 60 hour weeks, miss dinners, post-pone vacations, decades of grinding, but that wealth business sitting in your accounts right now, the one with millions and assets, you treat it like a side project.
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[SPEAKER_00]: And to me, this is backwards because with a fraction of the effort that you put into somebody else's business, you could be managing the one asset that actually reshaves your life.
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[SPEAKER_00]: But looking back, all it took was applying the same systematic thinking I used professionally to my own wealth instead of building somebody else's company.
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[SPEAKER_00]: Same skills, different application, completely different outcome.
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[SPEAKER_00]: So here's my challenge.
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[SPEAKER_00]: Go back through those five reasons.
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[SPEAKER_00]: be honest with yourself.
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[SPEAKER_00]: If they apply to you, traditional wealth management is fine.
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[SPEAKER_00]: There is no shame in that.
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[SPEAKER_00]: But if you went through all five and thought, none of these are me.
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[SPEAKER_00]: I do want ownership.
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[SPEAKER_00]: I do care about reducing taxes.
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[SPEAKER_00]: I am above a million.
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[SPEAKER_00]: I can commit the time, and I do want an evergreen portfolio, then you're exactly who should build a micro family office.
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[SPEAKER_00]: And if that's you, I would love to have you at our next live workshop where we break down the architect phase of building a microfamily office in detail.
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[SPEAKER_00]: You will learn how to architect your portfolio strategy using the Evergreen Framework, build the operational infrastructure just like a real family office.
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[SPEAKER_00]: and run your wealth systematically without it consuming your life.
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[SPEAKER_00]: So if this sounds like the next step in your wealth journey, you want to go to wealthops.io forward slash go and sign up for our next event.
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[SPEAKER_00]: After that, you can check out this video if you want to learn more about the micro family office concept.
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[SPEAKER_00]: See you in the next one.
