As an entrepreneur or high net worth individual, managing your complex financial life can be challenging and time-consuming. You may have multiple investment accounts, real estate holdings, business interests, and philanthropic pursuits to oversee. This is where a family office can help – by providing comprehensive financial management services. However, a full-time family office staff can be costly. The solution? Fractional family office services.
Table of Contents
- What is a Fractional Family Office?
- Services Provided by a Fractional Family Office
- Benefits of Using a Fractional Family Office
- Is a Fractional Family Office Right for You?
What is a Fractional Family Office?
A fractional family office provides many of the same services as a traditional single-family office, but on a part-time or as-needed basis. This allows you to access the expertise and resources of a family office without the high overhead of a dedicated full-time team.
Fractional family offices are typically used by families with a net worth between $10 million to $100 million. They offer a flexible and cost-effective alternative for families who need more than a typical financial advisor can provide, but don’t require or can’t justify the expense of a full-scale single family office.
Services Provided by a Fractional Family Office
A fractional family office acts as the quarterback for your financial life. They work directly with your other advisors, such as wealth managers, estate attorneys, CPAs, and bankers, to ensure all aspects of your financial plan are working together seamlessly.
Some of the key services include:
- Quarterback role: Collaborate with your wealth managers, estate planners, and other advisors as needed to coordinate and optimize all aspects of your financial life.
- Financial reporting: Consolidate data from multiple sources to provide a comprehensive view of your net worth, cash flow, and overall financial activities. This includes creating net worth statements, cash flow reports, and investment performance summaries.
- Rental property management: Handle the financial aspects of your rental properties, including invoice creation, rent collection, expense tracking, and bill payments. Provide regular reports on property performance.
- Personal bill pay: Manage your personal expenses by receiving bills, making payments, and providing detailed reporting. This can free up significant time and ensure bills are paid accurately and on time.
- Tax planning and compliance: Proactively identify tax planning opportunities and implement strategies to minimize your tax liabilities. Ensure all necessary tax returns are filed accurately and on time.
Collaborate with the rest of your expert team
- Investment management: Collaborate with your wealth advisors as they oversee asset allocation, manager selection and performance. Your fractional family office will provide consolidated reporting on all your investment accounts.
- Estate planning: Work closely with your estate attorney to craft and implement wealth transfer and legacy plans with an eye on tax optimization.
- Risk management: Collaborate with insurance brokers to make sure your insurance needs are met, and premiums are paid.
- Special projects: Quarterback major transactions such as real estate purchases, private investments, financing arrangements or business sales. Coordinate with your various advisors to streamline the process.
By serving as the central point of contact and coordination, a fractional family office simplifies your financial life and gives you confidence that all the pieces are working together effectively. You can focus on what matters most, knowing that your financial affairs are being proactively managed.
Benefits of Using a Fractional Family Office
There are several key advantages to engaging a fractional family office:
- Streamlined management and consolidated reporting of your financial life
- Integrated tax planning and optimization
- Cost savings compared to hiring a full-time family office staff
- Access to a diverse team of financial specialists when you need them
- Objective, unbiased advice aligned with your best interests
- Ability to leverage best practices and learnings from working with other families
- More time to focus on what matters most to you and your family
Is a Fractional Family Office Right for You?
If your financial situation has grown increasingly complex but you don’t have or want to spend the resources on dedicated full-time staff, a fractional family office may be the ideal solution. By working with a trusted provider on an as-needed basis, you can strengthen your financial position, secure your legacy, and free up time and mental energy.
At Proseer, we specialize in providing fractional family office services to successful entrepreneurs and their families. Our experienced team can serve as your personal CFO – the first call whenever a financial question or need arises. To learn more about how we can help you centralize and optimize your financial world, contact us today.
