Don’t make the same mistake this guy with $50M is making

Very wealthy people - especially those who’ve been burned before, often have a hard time turning over their finances to one person.

This week, someone told me he manages part of his money himself, has another money manager handle another portion, and wanted to see if I could become a third leg of the stool.

I said no. For two reasons 👇

1️⃣ That’s a terrible way to manage money.

Investment returns come from taking risk.

When you silo your portfolios across multiple advisors, you end up with overlapping and inefficient risk exposure.

When I build a portfolio, I model the risk, return, tax characteristics, and correlations of each asset class to every other.

Good luck doing that across three disconnected pools of money.

2️⃣ That’s a terrible way to set up your spouse and kids.

A good financial advisor is so much more than a “money manager.”

You want someone who knows your family - someone who’ll be there as dynamics change and wealth starts to shift hands.

That doesn’t work when your assets are split across three firms.

And honestly, it just sounds exhausting.

There’s a reason people put up with the big private banks despite all their conflicts - having everything in one place is simpler, less stressful, and easier to manage.

The notion that having one advisor is “putting all your eggs in one basket” is nonsense.

Unless, of course, your advisor thinks their job is to pick stocks - in which case I’d 100% agree.

But the best advisors aren’t stock pickers.

They’re allocators - people who select and blend the right managers, funds, and strategies to build a portfolio that’s optimized for your unique tax, liquidity, and risk profile.