Many people confuse wealth management with wealth creation. While building wealth is the result of personal effort, the role of financial institutions lies in preserving that wealth and growing it through structured strategies. Greed is the investor's greatest enemy and is often the cause of failure, especially among those who inherit wealth and assume it will grow on its own without planning.
Trust accounts for about 70% of success in wealth management. It is not earned quickly. It requires patience, consistency, and transparency.
Those who spend less than 50% of their income are in a stronger financial position, while those who spend all their income, or rely on borrowing, are bound to face future difficulties. Compound returns are essential to building wealth. To double your capital in seven years, a 10% annual return is needed, or 7% per year to double it in ten years.
Debt is the greatest threat facing investors. Blindly copying Western models of investing or home ownership is not advisable. Instead, solutions tailored to our local reality must be developed, such as buying a smaller property and investing the remaining capital with reputable institutions that specialize in wealth management and growth.
Financial planning starts by asking three fundamental questions: What is my income? What are my expenses? And how much wealth do I aspire to build? These questions lay the foundation for a sound financial strategy. Often, clients come with a goal to achieve a retirement income that is double their current salary. The Family Office team then designs a long-term investment strategy to close the retirement gap based on each client's financial capacity and obligations.
There are five clear signs that indicate a person is headed for financial trouble: spending more than they earn, imitating others' spending habits, lacking basic financial literacy, failing to allocate funds for investment, and not having a long-term plan.
Financial planning remains the most effective way to face the future with confidence, especially amid challenges like inflation and the fact that family sizes often grow faster than wealth does. Sound investing is not about excessive saving or careless spending. It’s about thoughtful balance and disciplined habits that must be instilled across generations.
Since founding The Family Office, Abdulmohsin Al Omran has launched an annual initiative to hire and train 10 fresh university graduates. This year, the number exceeded 20. Mr. Al Omran sees those who began their careers at the firm and later joined competing institutions as ambassadors of its culture. After retirement, he plans to continue supporting young talent and helping them develop their projects through a structured framework that aligns with their aspirations.
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