Having a lot of money can make you feel isolated.
I can tell you personally that after I inherited my father’s $28 million estate, I had more friends than before. But that did not last long. I eventually figured out that they were more interested in asking for loans or to get on my payroll than in me as a person.
On a bigger scale, take Markus Persson who sold the company Mojang (a video game company) to Microsoft for $2.5 billion. After the sale, he is reported to have never felt so isolated.
He posted on Twitter:
“The problem with getting everything is you run out of reasons to keep trying, and human interaction becomes impossible due to imbalance.”
“Hanging out in Ibiza with a bunch of friends and partying with famous people, able to do whatever I want, and I’ve never felt more isolated.”
His tweets expressed feelings of “isolation, a lack of purpose and a sense of drift”.
This idea that money is linked to unhappiness is imbued in our culture.
The Beatles sang, “Money can’t buy me, love.”
If you grew up Christian, you probably heard Jesus’ quote:
“It is easier for a camel to pass through the eye of a needle than for a rich man to enter the kingdom of God.” (Matthew 19:23-24.)
The tabloids commonly have stories about the problems of rich and famous people. A famous actress puts on 60 pounds and gets photographed at the beach. A famous singer has a nervous breakdown.
Somehow, seeing famous or rich people be miserable makes the rest of us feel better. But how do you think it makes the person in the tabloid feel?
Being part of a genuine multi-family office could be a solution.
A multi-family office is not an investment company that calls themselves a multi-family office.
It’s a group of friends who all happen to have money getting together to invest together.
Done right, the people in this group form a bond and a friendship. They are no longer alone. They watch each other’s backs. And they support each other emotionally while also gradually learning how to better manage their money.
The key is for them to form the MFO themselves. They need to be in charge, not the investment advisor.