Role of women in Family Office

It was Mel Gibson who first attempted to know “What Women Want” in this award winning Hollywood flick. While it required an electric shock to him to get to appreciate their viewpoint, I assure you that I did not have to undergo such a treatment. It just needed a bit of open mind, lowering a sense of superiority or male ego and a bit of empathy. 

I am also relying on my personal experience of dealing with women with their financial affairs. Most importantly the experience I gained in dealing with women in business families, where they are given a bigger role in managing financial affairs of the family.

Before looking at this aspect whether women are adept at handling financial affairs or not. Or whether women with similar financial education background will tip men at this job. Let us approach it from two aspects: Her financial behavioural framework and her general demeanour. 

Her financial behavioural framework:

Let us understand that perhaps this is the first generation of women who have gone out of homes and competing with men. One generation ago, women worked too but not in domains strictly considered of men’s. So let us say historically, men went out to work and women looked after home and raised children. She made jewellery and always tucked away some money from her savings to save for rainy days.

My own mother used to have 3 or 4 metal boxes, where she would throw some currency. One box denoted one goal and she never opened it till the right time. In other words, she never compromised one goal for another whether it was saving for education, marriage or medical exigencies. She only touched the right box and took out money at the right time. She possibly understood the concept of ‘Non-fungibility’ before Nobel laureate Richard Thaler published his work. It was a mere mental note for her. 

From very Indian outlook and some similar conservative societies, this was a prevalent practice and a common wisdom passed on from all mothers to all daughters. Women always focused on preservation. Whether, it was about the health of her family or their general well-being. 

Women of today also carry the same Phylogenetic signature, if you will. This is evolutionary concept. It is a sub-conscious response of the female brain.

Her general demeanour:

A Woman is generally known to be more creative in whatever she does. She is orderly, well behaved and largely in discipline. Yes, we may see many modern day examples of a spoil girl kid in schools and colleges but it is not her true nature. Many a times she is just playing equal to boys and may be venting out her anger towards her family or some frustration for lack of attention. Such girls too stabilise as they grow older.

She has grown up playing with dolls, spending hours decorating her dolls and later on herself in the mirror. She takes care that things are not messy. 

Things may be changing nowadays, but I could not spot more than 10% women in a casino. Aggressive risk taking and a mindless bravado is not in her innate nature. No wonder that in traditional Indian households, the so called Tijori ki chaabi or keys to the safe were handed over to the Female head of the family. She was seen as a figure of responsibility and respect. Her views on matters of land and investment were and still are respected. Overall, she lent a Balance and influenced the manner in which men in the family approached financial matters.

I have highlighted some key words above in my chain of thoughts. Let me enumerate them here once again:

1.      Savings mindset

2.      Goal orientation and Non-fungible financial planning

3.      Wealth Preservation mindset (special mention in concluding note on this)

4.      Creative thinking

5.      Orderly and Disciplinarian

6.      Never leaves a mess

7.      Low risk taking

8.      Responsible and accountable

If I were to write a job description of a chief investment officer of a family office, above qualities would be a Gold standard. Throw in the quality of ‘Trustworthy’ especially if the candidate is from within the family then it is a complete package.

Finally, my personal belief has always been that wealth creation always happens in business or trade that any business family is engaged in. For a Family office, wealth preservation is the top priority. And for the Patriarch of a family, preserving the values and cohesiveness of his family is also paramount. The answer lies in your daughter or daughter in law. Groom them to be the Family office in charge.

Love and Peace,

Nitin Patnia

Disclaimer: The author works as a financial advisor in India. The views expressed here are completely his own and are a collective wisdom of  numerous humans that co-exist or existed before the author. The author claims no right of originality of ideas but would like to assert the right to his style of writing. There is no intent to hurt anyone's sentiments with his opinions. It is just an honest expression by the author to help anyone who may be benefited from his writings. And a medium to express his gratitude to all who contributed to bless the author with wisdom.