3 ms·

I have seen reports of how things go in "old money" families. It doesn't look at all like the idea we make of families. They have access to vast amounts of res

by GuB-42 3y ago

I have seen reports of how things go in "old money" families. It doesn't look at all like the idea we make of families. They have access to vast amounts of resources, but family members don't have free access, far from it. There is council that decides how the funds are allocated, and when family members need some, they need to pitch how they are going to use it, and the expected returns. And if some family members are deemed unworthy, or don't follow some rules they can get expelled and lose access to the familial wealth. So maybe that's what companies mean by "we are family". Or more likely, it is a combination of the perspectives of the modest families with the warmth of the wealthy ones.

marklar423 3y ago
That sounds fascinating, a whole world I know nothing about. Would you mind pointing me at where I could read more?
- dwmbt 3y ago
  an heir to the Johnson & Johnson fortune filmed a documentary full of weird dynamics like this: https://www.youtube.com/watch?v=HmlX3fLQrEc https://www.youtube.com/watch?v=HmlX3fLQrEc
- daveguy 3y ago
  This isn't a way to actually read and learn about it, but if you want to see these dynamics taken to hilarious absurds, then you should watch Righteous Gemstones from HBO (Max).
e_i_pi_2 3y ago
At that point I'd think the general opinion is that they're operating as a company _instead of_ a family. Pitching investment ideas and getting cut off from support doesn't sound like a family. I think this is just something you kinda need to do with that much wealth, but I don't think it's an example of how any average family operates
yCombLinks 3y ago
I'll vouch for similar experiences. My girlfriend was an executive assistant for multiple extremely wealthy people and saw these types of dynamics.
Aurornis 3y ago
> when family members need some, they need to pitch how they are going to use it, and the expected returns. If we're talking about money for investment purposes (you mentioned expected returns) then this is what's know as a "family office" It's not really an old money thing. It's common for ultra high net worth families to establish a Family Office as a privately held company to manage their assets. The Family Office runs like a business with a goal of maintaining and growing the assets under management. They may have full-time employees who are not members of the family at all, such as a CFO. This isn't really related to family dynamics, though. Family members would have ownership stakes in the company and, therefore, proportional ownership of the Family Office's assets. If they wanted money they could sell some of their ownership to another family member (within the various stipulations, of course), but family members can't bypass the business and treat the family office like a piggy bank where they can ignore ownership structures and extract wealth for themselves. This isn't really related to the "we are family" concept that that companies talk about at all. It's just a business structure that happens to be used by families to manage their wealth like a business. Individual's wealth is still their own to deal with as they please.
- habitue 3y ago
  The OP might be talking about a family office, but they might also be talking about how the family decides how much each member gets. That's a separate issue from how the money is invested and grows
TacticalCoder 3y ago
> They have access to vast amounts of resources, but family members don't have free access, far from it. Well they're called "trust fund babies" for a reason. But the trust fund doesn't mean free money is flowing endlessly: it is set up so that they cannot blow it all up in a few years.
didntknowya 3y ago
most old money is locked into investment and guarded by professional wealth managers. you can't just ask daddy for cash- unless they've set up trust funds to freely dispense your allocation, you're gonna have to pitch for it.
HeavyStorm 3y ago
I think you may loose access to extreme wealth. Not to the family and, by extent, the good life it provides. People aren't expelled or disinherited when families are having profit issues.

by GuB-42 3y ago

marklar423 3y ago

That sounds fascinating, a whole world I know nothing about. Would you mind pointing me at where I could read more?

dwmbt 3y ago
an heir to the Johnson & Johnson fortune filmed a documentary full of weird dynamics like this: https://www.youtube.com/watch?v=HmlX3fLQrEc https://www.youtube.com/watch?v=HmlX3fLQrEc
daveguy 3y ago
This isn't a way to actually read and learn about it, but if you want to see these dynamics taken to hilarious absurds, then you should watch Righteous Gemstones from HBO (Max).

e_i_pi_2 3y ago

At that point I'd think the general opinion is that they're operating as a company _instead of_ a family. Pitching investment ideas and getting cut off from support doesn't sound like a family. I think this is just something you kinda need to do with that much wealth, but I don't think it's an example of how any average family operates

yCombLinks 3y ago

I'll vouch for similar experiences. My girlfriend was an executive assistant for multiple extremely wealthy people and saw these types of dynamics.

Aurornis 3y ago

> when family members need some, they need to pitch how they are going to use it, and the expected returns. If we're talking about money for investment purposes (you mentioned expected returns) then this is what's know as a "family office" It's not really an old money thing. It's common for ultra high net worth families to establish a Family Office as a privately held company to manage their assets. The Family Office runs like a business with a goal of maintaining and growing the assets under management. They may have full-time employees who are not members of the family at all, such as a CFO. This isn't really related to family dynamics, though. Family members would have ownership stakes in the company and, therefore, proportional ownership of the Family Office's assets. If they wanted money they could sell some of their ownership to another family member (within the various stipulations, of course), but family members can't bypass the business and treat the family office like a piggy bank where they can ignore ownership structures and extract wealth for themselves. This isn't really related to the "we are family" concept that that companies talk about at all. It's just a business structure that happens to be used by families to manage their wealth like a business. Individual's wealth is still their own to deal with as they please.

habitue 3y ago
The OP might be talking about a family office, but they might also be talking about how the family decides how much each member gets. That's a separate issue from how the money is invested and grows

TacticalCoder 3y ago

> They have access to vast amounts of resources, but family members don't have free access, far from it. Well they're called "trust fund babies" for a reason. But the trust fund doesn't mean free money is flowing endlessly: it is set up so that they cannot blow it all up in a few years.

didntknowya 3y ago

most old money is locked into investment and guarded by professional wealth managers. you can't just ask daddy for cash- unless they've set up trust funds to freely dispense your allocation, you're gonna have to pitch for it.

HeavyStorm 3y ago

I think you may loose access to extreme wealth. Not to the family and, by extent, the good life it provides. People aren't expelled or disinherited when families are having profit issues.