Simplifying Family Investment Portfolios

A dynamic portfolio can help address a number of investment challenges that families of wealth face, including varying multigenerational preferences, unique tax considerations, domicile requirements, and specific beneficiary needs. Yet there is also such a thing as overcomplexity, which can waste time, cause confusion, decrease potential returns, and increase risk. This paper reviews three indicators of an overly complex portfolio and discusses best practices for addressing them. Meeting multiple needs while protecting against overcomplication can help families maintain a prudent investment strategy and remain on track to accomplish their long-term investment objectives.