In a world increasingly shaped by volatility, fragmentation, and rapid transformation, the rules for preserving wealth are being rewritten. For family offices and ultra-high-net-worth individuals (UHNWIs), the traditional playbook—rooted in static asset allocation and jurisdictional loyalty—has begun to erode under the weight of geopolitical risk, inflation uncertainty, and intergenerational transition.
Amid this global realignment, one voice has emerged from South Africa with clear, actionable insights: Felix Honigwachs. A seasoned financial strategist and advisor to family offices, Honigwachs draws from years of experience navigating complex environments where adaptability, resilience, and foresight are not optional—they are essential.
In this blog, we explore Felix Honigwachs’ perspective on the “new rules” of wealth preservation, with a focus on how South African and global families alike can evolve their strategies to endure and grow in the decade ahead.
Rule #1: Wealth Architecture Is as Important as Wealth Accumulation
According to Honigwachs, the first fundamental shift in mindset is recognizing that how wealth is structured is as important as how it is earned or grown. “Too many families focus solely on asset performance, while ignoring the skeleton that holds those assets together,” he says.
In today’s world, where capital can be frozen, taxed aggressively, or exposed to unpredictable legal jurisdictions, robust wealth architecture is a form of risk management. This includes:
- Establishing multi-jurisdictional trust and holding structures
- Separating operating entities from legacy capital
- Building in flexibility to respond to tax and regulatory changes
For South African families—long familiar with currency controls and shifting tax frameworks—this approach is already second nature. As Felix Honigwachs points out, “South Africans have learned to build for the long-term by thinking globally and structuring locally. That discipline is now relevant everywhere.”
Rule #2: Preserve Optionality Across Jurisdictions
In the past, geographic loyalty often defined family wealth strategies. But today, preserving optionality—the ability to move, protect, or access capital across multiple legal systems—is paramount.
Honigwachs emphasizes the growing trend of jurisdictional diversification, particularly for families in politically or economically unstable regions. “Wealth preservation today is not just about investing in multiple asset classes, but anchoring wealth in jurisdictions that are legally stable and internationally respected,” he explains.
Some of the key jurisdictions now favored by forward-thinking family offices include:
- Mauritius – as a gateway between Africa and Asia
- Singapore – for legal stability and financial infrastructure
- The Channel Islands – offering strong trust law and confidentiality
- Cayman Islands – for flexible structuring of private investment vehicles
These locations serve not just as tax havens, but as wealth preservation hubs, offering legal protections that reduce exposure to domestic political or fiscal shifts.
Rule #3: Family Governance Is Non-Negotiable
As much as the external world is changing, so too are internal family dynamics. With a historic transfer of wealth now underway—from Baby Boomers to Millennials and Gen Z—Honigwachs warns that governance failures can destroy value faster than market volatility ever could.
“Every successful family office I work with has some form of documented governance structure,” he notes. “This includes how decisions are made, how disputes are resolved, and how the next generation is prepared.”
Key components of a strong governance framework include:
- A family charter or constitution
- Defined roles and responsibilities
- Intergenerational education and mentorship
- Regular family councils and decision forums
For South African families, where wealth is often intertwined with legacy businesses and philanthropic missions, the clarity provided by governance is not just protective—it’s empowering.
Rule #4: Reassess Safe-Haven Assets
The global rise in inflation, interest rate shifts, and sovereign debt instability has forced a re-evaluation of what “safe” really means. According to Honigwachs, traditional safe-haven assets—like long-term government bonds—are no longer delivering the hedge they once promised.
Instead, he sees family offices increasing allocations to:
- Short-duration fixed income to manage rate risk
- Precious metals like gold, particularly as a hedge against currency depreciation
- Real assets such as farmland, timber, and infrastructure
- Hedge funds to access uncorrelated returns
“These are not speculative plays,” says Honigwachs. “They are strategic reconfigurations designed to reduce portfolio fragility.”
Rule #5: Contingency Planning Is a Strategic Imperative
The final, and perhaps most underrated, pillar of wealth preservation is disaster and contingency planning. Honigwachs argues that too many family offices are unprepared for real-world disruptions—from sanctions and bank closures to cyberattacks and succession disputes.
“Contingency planning is no longer about what happens when the family patriarch dies—it’s about how the entire structure responds to external threats,” he explains.
Key strategies include:
- Having multiple banking relationships across regions
- Holding emergency liquidity in accessible vehicles
- Defining crisis response protocols within governance frameworks
- Ensuring digital infrastructure security for family and investment data
In South Africa, where economic shocks and political changes are frequent, such planning is standard practice—and increasingly, it’s being adopted by global family offices that want to ensure operational continuity no matter the scenario.
Conclusion: A Global Strategy with South African Wisdom
Felix Honigwachs’ insights serve as a powerful reminder that wealth preservation is no longer about staying the course—it’s about building the course strategically, globally, and purposefully. From South Africa to Europe, the U.S. to the Middle East, families are waking up to a new reality: wealth that is unprotected is wealth at risk.
With a focus on jurisdictional flexibility, legal architecture, governance, and resilience, Honigwachs offers a roadmap that blends South African pragmatism with global sophistication. In a time where change is the only constant, these new rules of wealth preservation are not just optional—they are essential.
