"Jon Carroll, president and chief executive of Family Office Metrics, a business consultant to Family Offices, said the best ones act like multidisciplinary professional services firms with experts in investments, auditing, legal services, tax preparation and compliance all under one roof, with the family as the only point of concern." Though, not all Family Offices are so extensive.
It probably goes without saying that a Family Office isn't cheap. "Charlie Grace, managing director at the Family Office Exchange, said the annual costs could run from $400,000 for a couple of employees for a $100 million family office - which would be on top of investment management fees - up to $8 million to $12 million per year for 30 or 40 employees at a multibillion-dollar office."
It seems that one of the largest driving factors behind utilizing a Family Office is the emphasis on confidentiality. While all of us cherish our privacy, establishing a Family Office offers protection from filing certain documents with the FCC, hence the greater discretion offered in the creation of such an entity. The other attraction is that Family Offices keep the finances within the family. Their number one concern is the family and their financial security, prosperity and successful financial longevity - all concerns that the wealthy and the hoping to become wealthy share.
"Mr. Carroll said that when family offices work well they give a family three things: control, security and quality."
In the New York Times article, "A Family Office for the Superrich, and Lessons for the Less Wealthy," author Paul Sullivan emphasizes that virtually every household has a Family Office. Of course, it is on a much smaller scale, but it is also important to find a balance between family members. "Tavan L. R. Pechet, president of Pechet Advisors, who previously ran a family office" explains that "you need to select the right team, manage them effectively and get them to work together. The important challenges and benefits in life come back to families: how they work together, how they can collaborate and cooperate, how they can educate their children and give back to their communities together."
THE BENAY WAY While not everyone is in the market for a true Family Office, we treat our clients like the important families of individuals that they are and offer a team to help them effectively manage their business and finances. Besides business management and back office services we connect our clients to a wide range of service providers they need through our trusted associations with attorneys, accountants, financial advisors and others. We offer most of the back office services required by Family Offices but at a fraction of the cost and all under one roof, ensuring that they receive the highest quality of service.