There are many misconceptions about family offices, which can lead to misunderstanding and even mistrust. In this blog post, Tim Enneking debunks some of the most common myths about family offices so that you can better understand what they are and how they operate.
Tim Enneking Lists And Debunks The Myths About Family Offices
Myth 1: Family Offices are only for the ultra-wealthy.
Contrary to popular belief, family offices are not solely for those with extraordinary wealth, says Tim Enneking. A family office can be established for families or individuals who have a net worth of at least $5 million, though there is no hard and fast rule in terms of asset thresholds. It is true that most family offices manage significantly more money than lower threshold investors because their clients do tend to be wealthier, but this does not mean that they are inaccessible to those with smaller portfolios.
In fact, many financial advisors now offer family office services to clients who don’t meet traditional asset thresholds while still providing the same comprehensive benefits of a larger family office set-up. These “mini” family offices are tailored to their client’s specific needs, covering the same areas as a traditional family office while providing access to advice and services that aren’t typically available in standard wealth management.
The point here is not that having more money opens up exclusive doors or allows one to demand special services but rather that having access to a family office of any variety can provide helpful personal guidance and support regardless of wealth. By taking the time to find an advisor who specializes in mini-family office services, individuals can find more comprehensive financial advice than ever before. Ultimately, this type of service may be accessible for those with smaller portfolios and even allow them to achieve goals they never thought possible.
Myth 2: Family Offices only provide financial services.
Family offices are often associated with wealth management and investments, but this overlooks the range of services they provide. While financial advice and asset management can be a large part of what family offices offer, it’s important to understand that they provide much more than just this.
Family offices are often responsible for managing not only financial concerns but also legal matters, tax planning, estate planning, healthcare decisions, education services, and more. They take into account the unique needs of each family or individual in order to create plans that are tailored specifically to them. According to Tim Enneking, from selecting the best school for their children to providing guidance on how to manage their philanthropic endeavors, family offices can handle nearly any personal challenge a client may face.
Tim Enneking’s Concluding Thoughts
According to Tim Enneking, by working with an experienced advisor who understands all aspects of what a family office entails, clients can gain access to the best advice and resources available to them.