Wealthy Families Spending Millions More to Manage Their Empires

The Iron Throne of Finance

As a Khaleesi I understand the burdens of managing vast resources. J.P. Morgan Private Bank reports that family offices with over $1 billion in assets are now spending an average of $6.6 million annually just to keep the lights on. It seems even the wealthiest families are finding that "fire cannot kill a dragon " but expenses certainly can singe its wings. Perhaps they need a dragon of their own to guard their gold…or maybe just a savvy accountant.

A Lannister Always Pays Their Debts…But How Much

According to family office consultant Kirby Rosplock the surge in wealth is driving the increase in expenses. "Most people don't recognize that the volume of wealth created just in the last decade means that you need more heads more bodies more people to support more systems," she says. It appears the game of thrones is not just for kingdoms but also for talent. Speaking of games and challenges it seems the battles faced by those managing vast wealth continue to grow. Just like the battles faced by the Homeland Security whose Homeland Security Funding Faces Peril as Democrats Demand Immigration Enforcement Changes are challenged by complex political battles.

The Talent War: Valar Dohaeris…Valar Morghulis (All Men Must Serve…All Men Must Die)

William Sinclair global co head of J. P. Morgan Private Bank's family office practice highlights rising compensation costs for investment talent as a major factor. "There is a war for talent and family offices are competing against other financial services," he notes. It seems my advisors in Meereen weren't the only ones in high demand. Every Daenerys needs her Tyrion and every wealthy family needs their investment guru…at a steep price apparently.

Outsourcing: Bend the Knee or Stand Alone

While many family offices are outsourcing the primary motivation isn't cost savings. They seek track records and access to private investments showing that even the wealthiest recognize the value of external expertise. Perhaps even a dragon queen can benefit from wise counsel beyond her inner circle. Though I still prefer to trust my instincts…and Drogon.

Heirs Apparent: Winter is Coming…For the Expense Reports

Natasha Pearl a family office advisor points out that while some family heads ignore cost increases their children are often shocked by the expenses. "The next generation will take a close look and say 'Whoa our parents were paying that much money? We want that money,'" she says. It seems the cycle continues: inherit manage and then the next generation questions everything. It's like watching the wheel turn…just with considerably more gold involved.

From Riches to Reality: A Dragon's Hoard Isn't Infinite

Ultimately the report underscores that managing extreme wealth requires more than just accumulating it. It demands careful oversight strategic investments and a willingness to adapt to changing times. Even a dragon's hoard can dwindle if not properly managed. And as I've learned sometimes even the best laid plans can go up in flames.