The $50M Conundrum (Full Article)

Well done - you’ve got $50 million coming your way. A liquidity event or inheritance that could set your family up for life.

But there are still tough decisions ahead.

And the choices you make early on can shape returns, risks, and even family dynamics for decades.

So how do you manage $50 million?

There are three ways to play it:

We asked the question on X… hundreds of comments followed. 

Social media always provides both logical thoughts, and of course amusing ones.

Private banks can offer global reach, balance sheet strength, and access to products not available to individuals.

Multi-family offices emphasize independent advice, fee alignment, and a more tailored approach.

And for those who value control and flexibility, self-management is the only solution, typically supported by external specialists in areas such as tax and estate planning.

We spoke to a multinational investment bank with $5 trillion AUM, an independently owned multi-family office with $26 billion AUM, and an individual who self-manages the family’s $50 million in assets.

Here’s what they had to say….

The process

“This is an important client for us. This client would be coming in through a financial advisor. The financial advisor would then reach out to our family office specialists that I work with to understand how we can help. If the client is going through a liquidity event or the sale of a business, they would be connected to our Advanced Planning team.

This team engages in a Strategic Wealth Assessment that maps, outlines, flowcharts and summarizes their wealth ownership. Think overlaying the balance sheet with their trusts, partnerships and other important documents such as powers of attorney, health care proxy, etc.”   

Core services 

Wealth assessment and ownership structuring, investment portfolio advisory, tax advisory, estate planning, family advisory and philanthropy. 

Back-office accounting and bookkeeping are outsourced: “If a client needs or wants these services we have a handful of firms that are pure-plays here that have to be good at it.”

Clients with a hands-on style will also get direct investment opportunities. Tepsich says that clients “can certainly get into many alt products through our platform, as we use our scale with managers to provide access to clients.” 

Advisor relationships

Clients receive the same personalized service as those investing multiples more, with Tepsich highlighting the central role of UBS advisors.

“The financial advisor team has the closest relationship to the client and helps them navigate all of their complexity, including of course building an investment portfolio which is based on knowing everything about their client and family - risk tolerance, financial goals and objectives, etc.”

He points out that clients need to be engaged, but never at a self-management level.

“So, the client doesn't have to and should not self-manage here, as the domains can be complex - portfolio advising, tax and estate planning, and of course family advisory has professionals skilled in bringing families together to have discussions. What the client must be, however, is engaged and must spend the time to understand his or her complexity.”

Competitive advantage

“We are the private wealth management bank - most of our revenue comes from private wealth - not investment banking, asset management or consumer banking.  Because of this, we invest in resources for the private client. 

Advanced Planning is probably the most robust team compared to any of the other competitors - income tax team and wealth transfer and estate planning. The same goes for the Family Advisory and Philanthropy team, and of course myself.”  

Fee structure

Fees are asset-based and include advisory services. Tepsich argues they are competitively priced. 

“We aren't driven by selling products, as we are committed to an open architecture platform, unlike many of our competitors. Again, UBS's core business is the private client segment and it doesn't exist to feed asset management.”    

Client community

Tepsich says that UBS hosts regular events that allow clients to connect and engage with each other, including next-generation engagement opportunities. 

He also makes an interesting point that organic, informal groups often provide the best value.

“The best networks are often small, intimate and peer-to-peer that are driven by a small cohort of members and is more or less volunteer - which means the members drive it and get together on a monthly or quarterly basis - these groups don't advertise and aren't necessarily formal groups - just a group of like-minded folks.” 

The process

Whittier Trust starts with a series of in-depth conversations to understand the client’s unique situation, including source of liquidity, family dynamics, risk tolerance and a full review of their balance sheet.

“Whittier builds a customized allocation that reflects each client’s unique full balance sheet - not just the assets managed by Whittier. The outcome is a personalized roadmap that integrates investment management with family office services, designed to align wealth with purpose across generations.”

Core services 

Treut says the MFO organizes their service offering around five integrated pillars: Investment Management, Trust Services, Family Office Services, Philanthropy & Family Continuity, and Real Estate. 

From an investment side, Treut says that they do offer direct investment access to private companies through VC relationships, and “If a client has an interest in a particular private company, we leverage our extensive network to source privately traded shares.”

He adds that Real Estate includes both fiduciary oversight and direct investment opportunities, while Family Office Services encompasses an extensive offering:

“Customized concierge services, managing bill pay and capital calls, tax strategies and estate planning, document retention, insurance and risk management analyses, coordinating with outside advisors, facilitating family meetings, negotiating advantageous lending rates with multiple providers, and evaluating outside private investment opportunities.”

Advisor relationships

Treut emphasizes their dedicated, high-touch team that knows the family personally: “We have an industry-leading 30:1 client-to-advisor ratio, ensuring individualized attention and accessibility.”

He also notes they engage with family members across generations, which includes education, governance, and succession planning, and that clients also have direct access to portfolio managers and senior leadership. 

Competitive advantage

“Unlike publicly traded firms whose primary obligation is to shareholders, Whittier’s priority is our clients. As a trust company, we provide comprehensive, white-glove fiduciary services. We can also analyze outside private deals on behalf of clients—something banks are unable to do.”

Compared with self-management, Treut says Whittier provides access to high-quality funds on more favourable terms, and enables a more effective multigenerational structure.

“By serving as a corporate trustee, Whittier helps reduce litigation risk while alleviating both the administrative and emotional burdens often placed on family members. This allows clients to enjoy peace of mind, reduced complexity, and professional coordination across generations.” 

Fee structure

Whittier Trust charges an annual fee based on the market value of assets, starting at 1% for the first $10 million and decreasing at $10 million intervals upwards of there.

Client community

Whittier facilitates family-to-family engagements through client events and legacy forums, with regular peer discussions on key themes.

Treut highlights that Whittier started in 1935 as a single family office, and still operates with that same family-first mindset. 

“Families benefit from a trusted environment where they can share strategies for preserving values, continuity, and purpose across generations.”

Why self-manage

“I'm currently in a senior role at a commercial bank, but my career spans wholesale banking, RIA custody, wirehouse, and traditional private banking. After over 15 years watching ‘how the sausage gets made’, from custody operations to fee structures to actual portfolio construction, I knew I had to build something different for my own family capital.”

“The breaking point wasn't philosophical; it was mathematical. When you've collateralized over $10 billion in securities portfolios and structured over $5 billion in various loan facilities, you see exactly where fees go for the value that actually gets delivered. The math does not always work for the clients.” 

Investment approach

“I don't have $50mm personally, but I manage family funds and understand the dynamics at that scale from the institutional side. The principles are the same whether it's $5mm or $50mm.

Markets are driven by liquidity flows and credit dynamics. Everything else is noise wrapped in expensive presentations.

I built a quantitative framework that measures these forces directly rather than guessing at them through proxies. No hard pie chart asset allocation models.  I'm systematic but also opportunistic.

Private placement deal flow comes from 15 years of relationships. No brokers, no cold pitches, no middle-man markup. Direct access only.”

Setup and structure

“Custom-built systems and algos integrating everything from credit mkt data, to cross-asset volatility surfaces along with a slew of other proprietary shit I have built off my career learnings. 

Think institutional risk management meets family office style execution. Takes a few hours weekly once systems are dialed in. 

Hardest operational challenge? Deprogramming myself from industry orthodoxy. When you've spent years inside the machine, learning to trust data over consensus is harder than building the systems.”

Industry perspective

“I track everything because I know what good looks like from the institutional side. My framework delivers consistent risk-adjusted returns with controlled drawdowns and quick recovery times but my north star is long term outperformance to a given opportunity set. 

I am big on future proofing and the innovation sector - I am in the Peter Theil/Tim Draper philosophical camp in that I believe the whole point of risk taking and investing is to participate in building things that did not exist before.

Investing should not be a volume suppression game. You can always allocate sufficient non risk capital to cash, so don't half-ass your risk capital.”  

Scale will also have a major effect on your choice of structure:

“For families at scale, my advice is different: in-house the talent at the threshold where annual fees are in line with the payroll cost of dedicated staff. Instead of paying 150bps to outsiders, hire full-time professionals who work only for you.”

Lessons learned

“My biggest mistake was overdoing it early on. Thought I needed to reinvent everything when the edge was just measuring obvious things more precisely.  Also, the game cannot be cheated, risk is only transferred, not eliminated. 

What nobody tells you about self-managing: Your biggest risk isn't market volatility, it's letting complexity creep back in where it may not need to. The same principles that work at smaller scales still work at larger ones. Don't add sophistication just because you can afford the fees. Looking at you, structured products.”

Reality check

“Here's what I need to be clear about: What works for me might not work for others. This is literally my career - I've spent 15+ years building the expertise, systems, and relationships that make self-managing viable. Most people haven't and shouldn't try to replicate this path.” 

So what’s your take?
Hit reply to let us know, or join the conversation on 𝕏.