6 min
IS BEING A PRIVATE WEALTH CLIENT THE SAME AS A FAMILY OFFICE? Family Office with Lance Meikle
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- Investissement
IS BEING A PRIVATE WEALTH CLIENT THE SAME AS A FAMILY OFFICE?
The short and simple answer to the episode question is no.
As a Certified Financial Planner, I have both had, and have, clients that would fit under the label “Private Wealth”. However Private Wealth is simply a subset of a Family Office.
By the very name Private Wealth, wealth has a singular focus and outcome, based around metrics, whereas Family Office is about families, legacy, emotional intelligence, purpose, values and a structure for intergenerational transfer of wealth and reduction of intra-family disputes.
Private wealth has a sexy image that appears to represent success &/or being important whereas Family Office has a reputation of being stoic, sterile and for ‘them’, the older type.
The timeline for investment decisions between Private Wealth and Family Office are vastly different.
Family Office
Short term = 20 years
Medium term = 50 years
Long term = 100 years
Private Wealth
Vast and varied
The modern concept of the family office developed in the 19th century. In 1838, the family of financier and art collector J.P. Morgan founded the House of Morgan to manage the family assets. In 1882, the Rockefellers founded their own family office, which is still in existence and provides services to other families.
Family offices are arguably the fastest-growing investment vehicles in the world today.
Private wealth is about a taxpayer (either a person or persons or as an office holder of an entity (i.e., a ‘for purpose’ entity known as Not for Profit) whereas a Family Office is headed by a Patriarch &/or a Matriarch.
Cost is appropriately higher for Family Office than Private Wealth.
The modern Private Wealth provider focuses on more than financial outcomes by broadening their offering to include services such as tax, accounting and property however these offerings fall well short of the established Family Office service offerings.
Private Wealth sits above financial planning in both complexity and service offering, whilst Family Office operates as an ecosystem, utilises collaboration and facilitation at its core and as such, sits far about Private Wealth in complexity, service offering and outcomes.
A modern trend in Australia is seeing qualified financial planners moving up the scale with their offering and price to Private Wealth however due to the complexity, required skills and panel of solutions required, this trend will remain ‘capped’ at Private Wealth.
In closing, don’t be led to believe that you are receiving abundance if you choose Private Wealth because you’re not, you’re choosing mediocrity. Family Office is where it’s at.
IS BEING A PRIVATE WEALTH CLIENT THE SAME AS A FAMILY OFFICE?
The short and simple answer to the episode question is no.
As a Certified Financial Planner, I have both had, and have, clients that would fit under the label “Private Wealth”. However Private Wealth is simply a subset of a Family Office.
By the very name Private Wealth, wealth has a singular focus and outcome, based around metrics, whereas Family Office is about families, legacy, emotional intelligence, purpose, values and a structure for intergenerational transfer of wealth and reduction of intra-family disputes.
Private wealth has a sexy image that appears to represent success &/or being important whereas Family Office has a reputation of being stoic, sterile and for ‘them’, the older type.
The timeline for investment decisions between Private Wealth and Family Office are vastly different.
Family Office
Short term = 20 years
Medium term = 50 years
Long term = 100 years
Private Wealth
Vast and varied
The modern concept of the family office developed in the 19th century. In 1838, the family of financier and art collector J.P. Morgan founded the House of Morgan to manage the family assets. In 1882, the Rockefellers founded their own family office, which is still in existence and provides services to other families.
Family offices are arguably the fastest-growing investment vehicles in the world today.
Private wealth is about a taxpayer (either a person or persons or as an office holder of an entity (i.e., a ‘for purpose’ entity known as Not for Profit) whereas a Family Office is headed by a Patriarch &/or a Matriarch.
Cost is appropriately higher for Family Office than Private Wealth.
The modern Private Wealth provider focuses on more than financial outcomes by broadening their offering to include services such as tax, accounting and property however these offerings fall well short of the established Family Office service offerings.
Private Wealth sits above financial planning in both complexity and service offering, whilst Family Office operates as an ecosystem, utilises collaboration and facilitation at its core and as such, sits far about Private Wealth in complexity, service offering and outcomes.
A modern trend in Australia is seeing qualified financial planners moving up the scale with their offering and price to Private Wealth however due to the complexity, required skills and panel of solutions required, this trend will remain ‘capped’ at Private Wealth.
In closing, don’t be led to believe that you are receiving abundance if you choose Private Wealth because you’re not, you’re choosing mediocrity. Family Office is where it’s at.
6 min