By Sponsored Post
As a member of a wealthy family, an idea of creating a family office might have come to your mind. And, it’s pretty natural as well. After all, with it, you can manage your wealth without making too much of an investment or something as such.
But, is establishing such an organization right for your purpose?
In this article, we have shared our raw thoughts on the prospect of choosing the family office services for wealth management. There’ll be some additional information available regarding the same as well. So, stay tuned till the end!
What’s A Family Office - A Brief Introduction
As per a report, there are more than 10,000 family office services operating throughout the globe. And, amongst them, almost 6,000 are situated in the USA. Even Bill Gates and his wife had Cascade Investment who used to take care of their wealth management program.
But, what is it, really?
In essence, a family office is a private management firm that can take care of the investment and financial side of an individual. Usually, they can offer services like -
Usually, the prospect of a family office can be categorized into three different aspects. Here’s what you need to know about them.
1.The Multifamily Office
A multifamily office usually focuses on working with more than one aspect of financial management. For example, it’ll be their job to work on an investment strategy, make a private investment, and assist with tax planning.
Besides, they can also advise you on family governance. Considering how much their overall services pan out, this type of family office model tends to be much more affordable.
However, as you’re sharing your resources with another family or two, they’ll lack a little bit of control than a conventional family office service.
2. The Traditional Family Office
The concept of a conventional family office is quite straightforward. In this aspect, you, as a wealthy individual, will form a legal entity first. And, then, you will need to hire a staff who will manage, protect, and invest the wealth closely.
As they are an in-house product, a traditional family office will also have to assist with the lifestyle of the family. However, this would be the least important amongst all of their tasks.
3. The Outsourced Office
Unlike the aforementioned, an outsourced office isn’t a single organization or an office at all. Instead, it’s a collaborative effort made by more than one supporting player.
For example, the financial advisor will handle the person's investment portfolio while the attorney will take care of their estate plan. Also, there will be a CPA involved in this aspect who will work on paying bills and curate tax strategy.
Aside from this, you’ll also need to hire a -
… to get some assistance with your education and family planning.
Why Should You Avail A Family Office Service?
Having a substantial amount of wealth can definitely be useful for almost any family. It’s almost a dream for some people, you might say. But, with a lot of money comes a lot of headaches too. And, managing or investing the same is one of them.
Hence, if you need any assistance regarding the same, opting for a family office service will be ideal for you. Here’s how they can help you out.
The Final Say
When it comes to wealth management, only having an idea about the investment procedures will not be enough. Aside from that, you’ll also need to focus on improving your financial literacy and more.
However, until you become proficient in that regard, we’ll suggest you opt for a family office service. They can take care of all your wealth management-related issues and ensure that you’re doing well in the fiscal department.