At the Alchemia Group we are helping our clients think & act differently in regards to their wealth and its impact on thier family - because we know it is more than just numbers and plans, it's the Balance of Art & Science with Pragmatism and Vision.
With affluence/wealth comes the uncomfortable moment when a friend or relative approaches you at a social gathering (or elsewhere) with an investment ‘opportunity’. In a very thoughtful column Paul Sullivan offers the following ideas in his NYTimes article (attached) from August 2nd.
Parry the Pitch Ask “Why do you think I’m right fro this investment?” and “Do you have a business plan I can review with my advisors?”
Develop a Process Having a process for evaluating an opportunity can save friendships and family relations.
Make an Analysis What is the money for? How much of their own money is invested?
Consider the Other Investors Requiring third party investors moves the opportunity away from just family.
Be Respectful With a process you can have a discussion minimizing emotions.