While there is no universally accepted definition, a family office can generally be described as an entity that supports the complex financial needs of a specific family—or group of families—and acts as their "chief advisor." Family offices typically provide personalized services, technical expertise, creative business leadership and day-to-day management of financial affairs. Some liken the family office to a family's "quarterback" for all product and service providers and professional advisors, providing advocacy for the family's best interests while serving to strengthen the family mission and legacy.
As your family's assets continue to grow, either gradually or as the result of a significant liquidity event, and your life becomes more complex, you may find it beneficial to consolidate your needs with a family office. A family office can also provide invaluable support and assistance in such areas as educating next-generation members on the responsibilities of wealth, facilitating better communication among family members and between generations, developing family governance structures, and clarifying and fulfilling your family's mission and values. |
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While the family office model is highly attractive, the costs and time commitment associated with establishing and maintaining a single-family office can be extraordinarily high. There is, however, an alternative—the multifamily office. According to Sara Hamilton, founder and chief executive officer of Family Office Exchange, "[T]he multifamily office model is rapidly becoming the most sought-after platform for serving the ultra-affluent." The multifamily office takes the concept of service integration to its highest level, ensuring that all the components of your wealth strategy are closely coordinated and working in tandem and sparing you the need to spend time overseeing a disparate group of advisors.
| Single Family Office (SFO) |
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- Serves the needs of an individual family
- Requires extensive start-up, administrative and operational costs
- Exclusively suited to the specific needs of your family
- Clients enjoy the dedicated services and undivided attention of wealth management and investment advisors
- May routinely need to outsource specialized functions
- The departure of a family office director or other key staff members could be disruptive
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| Multifamily Office (MFO) |
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- Serves the needs of multiple families
- Combines resources and shares costs for efficiency and economies of scale
- Exceptionally well suited to needs of most families with substantial assets
- Clients share family office functions, with access to a single point of contact for planning and implementation
- Has deep in-house bench strength and experience across a wide range of financial situations
- Can help ensure continuity and maintain high levels of service quality even if a family's Client Service Director leaves
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We stress the importance of using an integrated approach to planning because it is the best way to view the entirety of your financial situation and to provide advice that will empower you to achieve the full potential of your wealth. We ensure that seasoned professionals in each of the key disciplines participate as a team and communicate with each other on how these elements of wealth planning can work together to achieve better results than planning them individually.
True integration also incorporates other trusted advisors who are critical to your wealth management, including CPAs and estate planning attorneys—all working together as a single, unified team. Harris myCFO's unique approach affords you a range of compelling benefits not typically available from most family offices, including:
- Improved cost efficiencies
- A clear, single-minded strategic vision across all your advisors
- The opportunity to work with best-of-class providers for every aspect of your wealth management strategy
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