I want to share a concept that perhaps you have never heard about, even though it has been around for over 100 years.  It is called a Family Office.

When you first hear this, you may immediately think of an office in your home.  I am not talking about that type of office exactly.

The type of office I am referring to is much different and was pioneered by John D Rockefeller. He formed one of the first known Family Offices back in 1882. His goal when creating this model was to protect and grow his wealth with a system that could function for generations.

In operation now for over 100 years, his Family Office model has stood the test of time and laid the groundwork for providing a proven system for managing wealth for generations.  Today, his family office has functioned for seven generations and morphed into a juggernaut with billions in assets.

What may be surprising to know is that this model is nothing new for ultra-high network families. It has only been elusive for those outside of this elite inner circle.  There are tens of thousands of single-family offices worldwide and the lists keep growing as wealth continues to build.

Meanwhile, people with above average means but who are not ultra-wealthy struggle to know how to manage what they have accumulated in a meaningful way.  Many people who have accumulated money still try to do everything themselves. They focus primarily on investments while missing out on opportunities the ultra-wealthy take advantage of each and every day.

At Skrobonja Financial Group we offer an integrated multifamily office model, offering an experienced team of professionals to serve multiple families. Our team assists those who want more for themselves and who could benefit from the resources of the ultra-wealthy.

Why The Ultra-Wealthy Have Family Offices

The chasm separating the ultra-wealthy is a real problem for those who have assets between $1,000,000 and $10,000,000. These people don’t necessarily qualify to be served by these type of office models, which by definition have traditionally operated exclusively for a single family.  Yet, these groups of affluent investors have needs that reach beyond basic investment decisions and could very well benefit from connecting with a family office.

What the ultra-wealthy have figured out is that using a family office model gives them a definite advantage. They have access to teams of investment, tax and insurance professionals, attorneys and financial planners to guide them through their financial decisions. This is an advantage of both time and talent, which frees them from the incredible responsibility of managing wealth on their own.

Having an integrated team of professionals all working synergistically together can bring vastly greater overall results. That is why the ultra-wealthy have viewed family offices as an investment and a necessity for over a century.

My point is that Family Offices are nothing new. The ultra-high net worth have always valued their time and make large investments into acquiring these teams of professionals to oversee the responsibility of managing great wealth.

The underlining lesson here is that, the ultra-wealthy know and realize that the most precious resource they have is time since there is a set amount of it (24 hours). They make a conscience decision to spend money to protect their time above all else. Meanwhile, the average person sees money as their most precious resource and spends their time doing things themselves to save money.

Ultra-Wealthy – Money for time

Average Person – Time for money

Why Delegation is Key

Another important point about the ultra-wealthy is that they realize they cannot possibly know everything. They surround themselves with smart people to support and make decisions for them, which contributes to their wealth.  This frees them to not have to become an expert in such things as cash flow, investments, taxes, insurance, law, and real estate.

They stick to what only they can do which is often building more wealth, charitable activities, working on relationships and serving their network.

Now I know you may be asking; how does this apply to you? What does a Rockefeller Family Office have to do with your situation?  In my opinion, it has everything to do with you.

In my own conversations with wealthy people, I am finding that people want more for themselves. They want to feel financially secure; they want to make an impact on their family, church and community.  They want a lot of things to be bigger and better but they often feel like they are missing something and walk around with doubt about what they are doing.

In my opinion, this is the result of not having the right team of professionals supporting them.

Many people find themselves in this bubble of self-imposed limitations that are reflective of what they see other people doing.  They find themselves following what the average person around them is doing and remain average in their thoughts, actions and in their situation.  They tend to overlook things that are unfamiliar to them and stick with what they hear other people are doing.

The reality is that while some people desire to be wealthy, most aren’t doing the things they need to do to make that happen.  And let me be clear, I feel strongly that it is not their fault.  You can’t possibly do something that you don’t know even exists.  Most people have simply never been shown the right way of doing things.

But once you know what to do, I believe that you’ll discover there is opportunity all around you. It is then up to you to take advantage of what presents itself.

Now, there are challenges when it comes to opportunity and building wealth. If opportunity presents itself it will often require change and going against the grain. It can mean breaking away from the status quo and taking action, even when those around you may not recognize what you are doing.

Investing in the Future Takes Effort

So, if you are fortunate enough to be shown an opportunity like what I am sharing with you right now about a family office, you have to take action. Otherwise you are limiting yourself to what everyone else is doing and the results that come with it.

Successful people tend to run toward opportunity while not being too concerned about what other people are doing. This is why the level of service and systems I am describing isn’t for everyone.

I believe that this is such an important conversation to have.  What people like the Rockefellers understand that most people don’t is that money, wealth, success and legacies take effort to create and maintain.

Successful people understand the importance of acquiring and developing the right relationships to help reach new levels.  It requires the mindset of wanting more for yourself and committing to doing things differently than the average person.

It is about realizing that the idea of a Family Office goes far beyond investing.  It goes beyond picking an asset allocation for your portfolio.  A Family Office is about complete financial management from cash flow, to taxes.  It includes estate planning and income planning.  It is about legacy and generational planning.  It includes making big-ticket purchases and utilizing good debt management.  It involves sound insurance choices and protecting assets.

In my experience, too many people confuse investing with financial planning. I am reminded of this every time I speak with a millionaire who find themselves outgrowing the advisor they have due to the limited offerings, limited knowledge, limited resources that the advisor they are using has to offer.

How Multi-Family Offices Can Maximize Your Results

People save and invest accumulating wealth and then realize there is more that needs to be done.  They realize taxes are a big problem and managing risk is a real concern. Many realize they need help but often don’t know where to go since they are not crystal clear on what they are even looking for.  They just sense there is more.

Filling that gap for those who cannot afford a traditional family office but who have considerable assets to manage is a problem. Most financial advisors, tax professionals and attorneys operate within their space and tend to not serve clients in other areas. They often don’t understand these things and can only offer what they know, which is limited to what they do.

That is where an integrated multifamily office such as what we do here at Skrobonja Financial Group can help. We offer a multifamily office model to successful people so they don’t need to go out and create it for themselves. A multifamily office doesn’t work for a single family but works for multiple families. It brings an experienced team of professionals to the table to coordinate resources, help manage cash flow, help reduce taxes, get a generational estate plan in place, offer holistic asset management, and insurance planning to those who desire this level of support.

This multifamily office has developed for us over the last 25 years. We bring together a team of professionals to those successful people who want more for themselves.  The goal we had for developing this was simple:  To bring a family office model to our clients granting them access to the knowledge and resources that the ultra-wealthy have been using for generations.

I want you to think about what it would be like to have a Family Office for yourself.

  • The feeling of having a comprehensive plan in place.
  • Not questioning whether you have missed something in your planning.
  • Knowing you have a team of people working for you, removing the responsibility of having to figure everything out on your own.

Imagine having your taxes prepared by a tax professional who actually helped with developing a tax strategy specifically for your situation. This goes beyond prepping a tax return for a fee. Reducing tax liabilities are one of the greatest ways to increase your overall rate of return on your wealth. (And no, I am not talking about funding your 401k.)

Imagine having an investment portfolio that not only offers diversification amongst asset classes, but also layers specific products and various strategies for growth into the mix.  This is a triple layer approach to achieving an optimal diversification.

Imagine having a chronologically mapped cash flow strategy that accounts for all large purchases and cash needs with no bank loans while continuing to grow your wealth.

Imagine having your risks analyzed and strategies designed to help protect your wealth from unforeseen events or lawsuits.

Imagine having an income plan in place that is designed to increase your cash flow and allow for more wealth creation and entrepreneurial opportunities while keeping control of your assets.

Imagine having a customized estate plan that not only transfers assets at your death to family and charities but also educates your family on your legacy plans while creating and perpetuating wealth through multiple generations.

Imagine having a network of professionals who all collaborate to better serve you and are available for regular meetings to review and answer your questions as they arise.

How much less stress would you have if you didn’t have to figure all this out on your own?

If you would like to learn more and see if you qualify to be a part of this group, let us know.  We would be happy to discuss your goals with you and see if you are a good fit for our program.