A study by the Family Office Exchange, an industry member organization, shows that the total cost for a family to look after its wealth management is reduced as the family's wealth level increases. It would not be uncommon for a family with a net worth of $100 million to pay approximately 60 basis points (six tenths of one percent) annually for all the family's wealth management (including family office costs and external professional fees, but excluding money manager fees). The table below shows the average total cost of wealth management, based on level of assets.
AVERAGE TOTAL COST OF WEALTH MANAGEMENT (EXCLUDES INVESTMENT MANAGEMENT FEES)
Source: Family Office Exchange, Sarah Hamilton, Issues in Family Office.
As a general guideline, most families should expect to pay a Multi Family Office™ advisory firm between 25 and 85 basis points of assets annually, depending on the level of the family's net worth. Again, this can vary significantly depending on what the Multi Family Office™ advisory firm will be doing for the family.