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Why Hire a Family Office?

The traditional broker/dealer client relationship has changed over the years. Once the business model primary brought individuals and brokers together for the purpose of selling stocks and bonds, distribution of intellectual property such as research reports on companies, financial planning. Today, the business model is primarily a distribution network where broker/dealers sale products through their sales force. The evolution of this business model caused some to point out possible conflicts of interest, for example, proprietary trading. At the same time the business model was changing the client was also changing. They net worths and needs were getting bigger and more complicated. Forbes reported on about 1600 billionaires in 2013 and families with net worths in excess of $25 million also find their needs are growing.

The Family Office addresses those needs and more.  Families are investing in emerging markets, alternative investments, real estate, direct energy, venture capital, numerous other asset classes and will also address many of the softer issues including taxes and regulation, asset protection, philanthropy, Trust Will & Estates, insurance planning, succession plans, edgers and Acquisitions and many more.

With today’s changing landscape in the wealth industry, family offices are becoming more and more prevalent. A multi family office or single family office is a private company, separate from the family business that manages investments and trusts for a single family. The company’s financial capital is the family’s own wealth, often accumulated over many family generations. A traditional family office is a business run by and for a single family. Its sole function is to centralize the management of a significant family fortune. Typically, these organizations employ staff to manage investments, taxes, philanthropic activities, trusts, and legal matters. The purpose of the family office is to effectively transfer established wealth across generations. The family office invests the family’s money, manages all of the family’s assets, and disburses payments to family members as required.