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Five Best Practices for Family Wealth Management

 Wealth management is the practice of structuring, managing, and growing wealth for clients. The client relationship is built on trust and professionalism. In this article, five best practices to consider when launching your own family wealth management services are outlined, in addition to strategies businesses can use to establish their brand identity or increase productivity.

Best Practices for Family Wealth Management

In the growing world of family wealth management, these practices will help balance the potential risks and benefits, and determine how your team needs to function.

Where do family offices come from?

During the US elections of 2016, The New York Times published a piece on how Trump's cabinet was shaped by the Super PACs that raised money for his campaign. Trump's Post-Election Advisory Commission (PEAC) has quietly encouraged candidates to get their political action committees qualified as family offices so they can make hefty investments in campaigns. Having more of these trusted advisers will make people more comfortable when they choose to invest in less direct ways. Because politics is complicated and investments present themselves in different ways, it is important to establish guidelines for managing money and not just hand over the keys to somebody without a clear understanding of how that person will guide you along your course.

What is the role of a family office wealth manager?

Family wealth management is anything but a typical family office service. In an effort to create a "certainty" around this concept, you'll find these qualified professionals provide asset management, estate planning, and advised family wealth services that often have more than just a fiduciary relationship with money, instead of providing comprehensive goals and financial advice.

Hiring a family wealth management service in US is beneficial as it will help to manage the complexity of your lives—in particular, to grow financial wealth, support the family’s long-term goals, manage family needs of various kinds, and coordinate across all of their endeavors with a unified strategy.

Benefits of family wealth management

While family wealth management can help families maximize what's in their estate, there are some drawbacks to keep in mind.

Family wealth management may help to allow children to set their own personal goals and serve as positive role models for students and their families. These benefits can also ease communication when family members are haggling over items that have accumulated over time but do not need to be used immediately.

Five steps to success with a family office

As of right now, family offices are a widely used segment in the financial world. They offer many advantages and currently help save hundreds of companies through mergers, acquisitions, and joint-venture partnerships. They also help manage wealth around the globe for wealthy individuals, corporations, and public institutions. In order to succeed within the company, it's important to continue learning how to use the services that are provided by your family office as well as to adapt according to business models within an ever-evolving market. It is vital for families who want to successfully run their businesses to pay close attention to these five success factors. 

1) Be customer focused 

2) Have a clear mission statement from day one 

3) Educate your members 

4) Focus on client retention during good and bad times 

5) Take care of your family's finances.

The need to be systematic with long term planning

Families can wait too long to start planning for their future. As soon as someone in the family gets married, starts a family, or has children, it's important that they understand the need for proper strategies. Otherwise, debts will only build up, and for some people, it can cost a fortune. There are some financial techniques that can immediately increase the net worth of the entire family and set them up for success.

Five years later: What have we learned?

Financial planning for an inexperienced family is just not easy, and it's a mistake to take on such a project without the help of experts. This can be quite bewildering in that, as children grow into adults, their stories change along with them. "My story changed?" you might ask yourself after reading the first account from your child, who is now working in banking and earning a six-figure salary "and don't even ask about all the things I want for Christmas," so the story goes.


Every family is different, and so should their wealth management plan. For example, services such as trust-like powers, IRA accounts, taxable investment opportunities for charity (i.e., 501(c)(3) or 90 deductions), and inheritance planning may not need to be a part of creating a comprehensive plan.

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