The Need for Family Offices

Are you familiar with family offices? They are, essentially, financial planners and investors that work for a single family and can provide a plethora of services ranging from private banking to booking travel for the family they work for. Does that sound crazy to you? Why would one family require a financial planning office and team of investors just for themselves?

Richard Cayne of Meyer International explained it best when he said, “Some family fortunes are so vast that it takes an entire team of people working full-time to manage them.”

What Are Family Offices

Bearing some resemblance to private bankers, family offices are wealth management firms that cater to ultra-high net worth families. So, instead of having accountants, bankers, financial planners and brokers; family offices offer a one-stop solution for complete asset management.

Though they are called “family offices,” you don’t have to have a family to use such a solution. Family offices are happy to serve individuals as well for their full planning needs; as long as they have the right net worth.

How Family Offices Can Differ

Every family office may function differently. Because they are focused on serving the specific, unique needs of one particular person or family, they basically remake themselves to be whatever that family wants and needs at any stage in their lives.

One family office might offer investment and tax planning only. Another might include estate planning and philanthropic endeavors. Family offices are also known to handle bookkeeping, expense management, bill payment, education trusts and payment and more.

Whatever the family needs and however the family changes, grows and evolves; the family office will alter itself to meet those needs by taking on more staff, consulting with specialists and learning about new aspects of the financial world.

“Lifestyle Management:” the Ultimate in Family Office Service

Some family offices offer even more deluxe service for their ultra-wealthy clientele. They can screen and hire domestic help and pay their salaries, work with managed care if a family member suffers health problems, offer research on family needs, book holidays for family members and more.

Think About It

While these services may still sound over-the top, it makes sense if you think of it this way: Think about a small-sized investment firm dealing with middle- to upper-class clients. When you add up the assets of all of the clients they deal with, you might be dealing with the same kind of sum that a single family employing a family office might hold in their portfolio.

What Richard Cayne of Meyer International says is this: “A portfolio is a business. Some portfolios are so big they need a whole team to run them effectively – that’s what a family office is.

For further information about family offices and other investment topics, Richard Cayne and Meyer International can be reached at (+66) 02 611 2561.