Traditionally, many wealthy families have relied upon family offices to centralize the management of family finances including taxes, investments and estate planning between generations. More recently, families are increasingly turning toward financial services companies that specialize in wealth management. This is due to the depth of experience these companies often hold, as well as operational efficiencies and reduced management costs.
While having the family offices managed in-house has its own appeal, they take time and money to oversee – and if the wrong individuals are chosen, it can negatively impact efforts to nurture long-term economic prosperity for the family. Relying on an experienced wealth management company can offer a depth of experience and best practices for families and take the burden of management and administration off the family or their staff.
What are the benefits of taking this approach? The demands of managing wealth alongside the everyday routine tasks can be complicated and will require unique solutions. Specialized wealth management companies can provide dynamic perspectives, educational resources and support services that clients don’t get with a traditional family office.
“A good wealth management company should be seen as an extension of the family,” said Christine Schmidt, VP Family Office, Trust Point, “We love that we’re able to offer the same level of trust and counsel as a family office, and should be seen as an equally trusted advisor, but with greater operational efficiencies, depth of knowledge and cost reductions.”
As younger generations begin to take on greater responsibility for family finances, wealth management companies can also offer more than the standard wealth management functions including education and resources. This can help younger generations better understand the family legacy and family finances and the balance needed to manage them to help ensure long-term wealth and financial security for the rest of the family for years to come.
About Trust Point
For more than 100 years, Trust Point has provided a wide array of trusted financial planning services to individuals, families, business and charitable organizations. It’s our goal to help you build a custom financial plan for a future in which you can thrive. It’s our mission to preserve and increase our clients’ wealth in a manner that best serves your values now and for generations to come.