Not every family will have the same needs. Our family offices can tailor offerings to fit your familial needs.
In our previous post we introduced Family Office Services and identified six specific services they provide. It’s important to note that not every family will have the same needs and family offices tailor their offerings to fit the familial needs. Today we’re going to dig a little deeper into some of these areas of expertise.
Strategic Wealth and Cash Flow Planning
A family’s long-term goals form the framework for the decision making. Formulating the goals is a critical foundational step in the wealth management process. Each family member can reflect on what is important, and then all of the members can discuss and refine the goals together. It is important for the family to establish a clear purpose for their wealth and manage it with a long-term strategy. Determining those goals, confirming the current status of financial holdings, and developing the investment management plan, also allows for cash flow planning. This helps the family understand whether their spending is within the “guardrails” established by their long-term plan.
Family offices vary in the way the investment team is organized. In some cases, all investment professionals may be hired internally. However, many Family Offices have specialist teams that search throughout the world for the best investment managers for specific asset classes and strategies. They then integrate these strategies into comprehensive portfolios specifically designed for the family. For the good of their clients, these offices negotiate terms with financial institutions, top investment managers, and other service providers. They also reconcile each transaction via financial statements and perform numerous quality control checks. Multi-family offices are generally organized as specialist teams and structured as Registered Investment Advisors. The key is that their investment management teams are built to focus on the needs of their clients and create solutions tailored specifically for them.
This category includes a focus on ensuring timely and accurate tax reporting, mitigating tax obligations, and developing strategies to help with income taxes, capital gains taxes, estate taxes, and the tax efficiency of portfolios. It is important to work in coordination with the client’s tax professionals as part of the overall investment strategy.
After assets are accumulated, it is critical to protect them from unjust lawsuits, creditors, litigants, and other financial predators. Unfortunately, when people become wealthy, they also become targets. Families must be adequately protected from losses that may result from accidents, errors in judgment, predatory activity, and opportunistic lawsuits.
When wealth is generated and likely to be passed along, thoughtful planning is very important. Planning how to pass along wealth to others may seem daunting, but such planning helps others and brings peace of mind in knowing that the wealth is passed along according to one’s wishes.
Administrative Services and Consolidated Reporting
Family Offices provide consolidated reporting and administration of all of these services. This simplifies complexity, provides context for decision making, and clearly shows in one place the financial information that is most important to individuals and their families.
Properly planned for and managed, your work can make a lasting positive impact on your family, your community, and the greater world. Family Office Services can perform the management and administration of your family’s wealth in a way that lets you optimize your time, focus and wealth.
At Cornerstone, our Multi-Family Office can help you and your family create and execute cohesive plans to make sure your family’s wealth is protected. This includes services such as tax planning, investment management, estate planning and philanthropy. We can also help with the administrative elements of wealth management by taking control of bill payment and collection services.
If you’re interested discussing Family Office Services and Cornerstone, please contact Bryce McDonald at email@example.com or calling 425-646-7600.