How do I evaluate whether a family investment is actually right for us?

Kris Kluver, in The Dysfunctional Family Office, gives families three questions to ask before any major investment, internal or external. Does the investment align with the family's values. Does it serve the family's purpose. Will it produce a solid return. If any answer is no, the deal is dead. The framework looks simple. It eliminates the disasters that rip families apart. Most family investment failures don't come from bad numbers. They come from skipping the values question because the returns looked great. Kris tells the story of a fourth-generation $400 million family that invested in a logistics company with a 30 percent projected return and a hostile work environment. The numbers said yes. The values said no. They invested anyway, lost 90 percent over two years, and nearly tore the family apart. The three questions exist to prevent this exact outcome.