Family Office Services
The team at Accurate Advisory Group works to achieve the best outcome for our clients wealth. The concept of the family office is for structure, clarity, and a consistent level of review, which are integral components for achieving your financial goals. The team at Accurate Advisory Group is the team you can depend on to define objectives and goals which are essential when it comes to your economic matters.
The two types of financial advisory services that play a crucial role in today’s fast-growing economy are family office and wealth management. Unlike the common misconception, these services are not similar but have a thin line that separates them from each other. It is important to know their minute details before understanding the differences between the two services.
Familyoffices are considered the fastest-growing service designed to aid the ultra-high net worth families and individuals in controlling theirfamilyfinances, legal matters, tax issues, and other administrative issues. Simply, it is an entity that has been set up or engaged by afamilyor group of families to manage their wealth. Thefamilyoffice aims to manage, build, and preservefamilywealth for current and future generations.
AAG looks at a family office to build a multifaceted portfolio while our team ensures its proper management. One must note, a well-established family office provides the structure and accuracy needed to navigate the wealth management landscape because it does not face any conflict of interest.
While establishing afamilyoffice to meet the wealth preservation needs, it is necessary to have a clear definition of thefamilyoffice’s purpose and role. The common motivators for wealthy families to set upfamilyoffices include:
To preserve family wealth and support generational wealth management.
To improve prospects of successful wealth transfer while managing complexities to ensure the efficiency of wealth management.
To give strategies that enable excellence in investment management.
To pursue new family business ventures while supporting existing family businesses.
To furnish a forum uniting the family and developing talent within it.
To provide strategies to grow wealth and support entrepreneurship in the family.
A family office is often divided into two broadheads:
- Single-familyoffices that serve and support just one ultra-affluentfamily
- Multi-familyoffices that build their business by serving many clients.
What Is Wealth Management
Wealth management is an investment advisory process that combines and uses other disciplines like finance, investments, and accounting to develop strategies that address clients’ financial needs. A wealth manager gathers information regarding the client’s needs and financial situation and develops tailored strategies for asset and estate management, financial planning, taxation, etc.
Family Office vs Wealth Management:
Confused at the differences? Let AAG explain.
There is a fine line betweenfamilyoffices and wealth management. This line can be explained as follows:
1. Personal attention
A family office is different from wealth management and several other investment strategies by the level of personal attention it gives to its clients. The level of attention given to a client is important to AAG, as we feel it helps to establish trust and a positive relationship between your family and our firm.
2. Holistic approach
Wealth management services rarely provide the kind of holistic approach that family offices do. Besides financial assistance, family offices also advise the family on charity and other comprehensive services. On the other hand, wealth management works only towards traditional wealth management services such as tax planning, asset management, etc.
3. Private wealth management
Don’t be confused; a family office can manage wealth, and AAG will provide the right investment team to do so; in fact, wealth managers are assigned to you for the long haul. In comparison, a traditional wealth manager has lots of different clients. This fundamental difference is in the number of clients versus the financial services they provide.
4. Custom-made investment plans
Afamilyoffice is a full-service private wealth management team offering tailored plans to maximize your financial goals and objectives.AAG will help diversify investments to help the family office gain the benefits they wish to receive while experiencing limited risks.
5. Cost of services
Family offices often work for people whose financial needs are of more significant amounts of money. This is mainly because of the costs that are associated with running such services. In contrast, wealth management deals with clients having varied economic backgrounds.
6. Scope of investment
The scope of advisory functions of wealth managers is quite limited as compared to that of family offices. Wealth managers offer limited investment opportunities, whereas family offices not only offer a diversified list of investments but various duties to uphold, such as expense management, family governance, financial education of the family, etc.
7. Family offices are multidisciplinary.
Thefamilyoffice is established or engaged by the ultra-high net worth investor families because their assets are significant in number and complex to handle. Thus, they require a full-fledged professional team to manage their wealth according to their preferences and goals. It is beyond the capacities of a traditional wealth management plan to provide advice and services to such families. They require a collaborative, exclusive, and well-coordinated team of lawyers, insurance and investment experts, estate, business, tax consultants, etc. The scale of resources needed for such planning and advising is quite complex and requires complete focus, something AAG does every day.
The abovementioned points indicate the difference betweenfamilyoffices and wealth management. Accurate Advisory Group is focused on developing and implementing transparent and client-centric, financial solutions, backed by expertise. We understand the weight of our solutions and act with the utmost care, resilience, and, most importantly, integrity.
