THE VIRTUAL FAMILY OFFICE

How to Manage Your Wealth Like the Rockefellers

For years the Rockefellers and other wealthy families have used family offices to assist them in managing their fortunes. These family offices consisted of talented professionals who provided a total financial plan for just one family. Today, wealthy families with between $25 million to $100 million are joining multi-family offices, highly exclusive firms which provide services similar to those offered by the traditional family office but to several families instead of one.

But what about millionaires with less than $25 million? For them, the exclusive multi-family office has remained out of their financial reach, much desired but prohibitively expensive. We believe that is about to change.

Today, wealthy families below $25 million in assets can establish their own “virtual family office” (VFO) to provide highly personalized advice on the protection, building and distribution of their wealth without the high overhead of a single or multiple family office.

Most wealthy people manage their fortunes without a governing plan. Typically, they go from one financial professional to another trying to determine the best course of action without a well-conceived overall strategy and the close relationship that an unbiased, trusted adviser can provide. This ad hoc approach is usually risky, costly and unsatisfying. The VFO concept gives families the opportunity to meet regularly with their selected counselors to discuss and implement their plans. This process increases the chances that their assets will be properly protected, built and distributed.

Unlike the separately staffed offices better suited for wealthier families, the VFO is organized by and for you. You, in concert with your most trusted adviser, can draft the legacy plan defining the goals and guidelines for the management of your assets, then add other professionals, as needed, to implement the plan. The initial focus is on risk and asset management, estate planning and taxes.

The virtual family office has many benefits. By coordinating the efforts of multiple financial advisers, the VFO often reduces duplication of effort and errors due to lack of coordination, often minimizing taxes and expenses. Because they are working in coordination, the VFO allows your advisers to make important decisions in a more timely manner. Through open dialogue between professionals, the VFO can uncover previously unknown preferences as well as replace professionals not meeting clients’ expectations. Finally, the VFO provides a way for you to monitor the ongoing activities of your team, and to add both professionals and adult family members to your wealth management team as desired.

It all starts when you learn more about the VFO concept. We can show you how wealth should be managed by following a financial plan and assembling a team of qualified professionals to implement it. You can also learn how to use your trusted adviser to guide and monitor the progress for you. Once most individuals learn about the many benefits of establishing a VFO, most are eager to get started.

Many people are overwhelmed by the complexity of managing and distributing their wealth. The VFO is an ideal solution for these wealthy families looking for a personal approach that remains firmly under their control. We look forward to discussing the benefits of the Virtual Family Office with you.

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