Managing billions in client assets does not insulate even the wealthiest families from making preventable mistakes. Wes Karger, co-founder and managing partner of TwinFocus, told InvestmentNews that ultra-high-net-worth clients often stumble in familiar ways—particularly when liquidity, real estate, lifestyle spending, and estate planning intersect.

One of the most frequent errors involves overcommitting to private investments without properly accounting for liquidity needs. Karger advises clients to approach early-stage and illiquid opportunities with rigorous due diligence. According to InvestmentNews, his team focuses on fundamentals such as growth projections, market size, exit assumptions, sponsor track records, and alignment of incentives.

Real estate also presents risks of overconcentration. Families often tie up massive amounts of capital in personal luxury properties that generate no income but carry steep ongoing costs. Another corrosive risk is lifestyle inflation. Karger told InvestmentNews that it is "one of the most subtle but corrosive risks to wealth," noting its potential to erode liquidity and foster entitlement in younger generations.

InvestmentNews reports that estate planning also presents recurring issues. Families frequently delay planning until a regulatory change or personal event forces their hand, often resulting in suboptimal outcomes. Other common mistakes include ignoring generation-skipping transfer opportunities, failing to coordinate across jurisdictions, and underestimating liquidity needs for estate taxes. Illiquid estates, he warns, may be forced into distressed sales simply to cover tax obligations.

Financial Advisor Transitions consults advisors nationwide to explore employment transition options and to preserve and protect their practice in any transition that they make.