Answer: The truth is, you could set up your own custom family office with just $1 million to manage. However, the costs incurred in setting up such a family office would likely outweigh the benefits of having one and eat into your investment returns.
Family offices require significant costs to launch and then there are other expenses that will have to be paid every year, perhaps most importantly, the compensation of your family office staff. Even if you only hire one person to manage your family office, you will have to pay a yearly salary and even a bonus to that person and most family offices also keep an assistant or additional financial professionals to help manage the family office.
Thus, you may be better off with a wealth management firm or as a client to a multi-family office that serves individuals and families in your asset range, rather than developing a custom family office.
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