Since the first half of the last century, the preferred model for ultra-wealthy investors to manage their financial lives has been the “family office”—a dedicated, multi-disciplinary team of specialists that deliver expertise in investment management, financial planning, estate planning, tax advice, law services and even business consulting to develop and implement a cohesive, focused financial strategy for clients and their heirs.

But while the family office space has remained relatively static in focusing only on the very highest echelons of our society, significant new wealth creation since the 1990s has spawned a comparatively new class of “overlooked millionaires” with $2 million to $20 million in net worth.

The Overlooked Millionaires, And What They Need

This segment of wealth holders has struggled to find a wealth advisory model that truly works for them. Although their planning needs are more complex than what mass affluent-focused advisory businesses can handle, these overlooked millionaires continue to fly under the radar of large Wall Street firms and traditional private family offices.

This translates into a potentially enormous opportunity for advisors who can offer a scalable version of the traditional ultra-wealthy family office model—or, as I like to call it, the “democratized” family office.

While this may seem daunting, focusing on certain key initial building blocks of the democratized family office model can significantly accelerate the ability of advisors to deliver such an experience to their clients.

Assemble A Dream Team

Many overlooked millionaires are business owners, or hold illiquid assets such as commercial real estate, farmland or timberland that have a significant bearing on their financial picture. Put simply, an advisor who can only provide guidance on traditional portfolios will not be able to serve such clients capably.

That’s why it’s necessary to assemble an in-house team of professionals that specifically has experience dealing with non-traditional asset classes, and appreciates how to incorporate them into a client’s broader financial plan.

If a business owner’s company is his or her primary growth asset, for example, such a team will be able to identify smart ways for the client to reduce investment portfolio risk, or risk in other areas of the client’s personal financial picture. The goal here would be to ensure that clients aren’t facing a potential “double bottom line” of risk—with both their business as well as their portfolio—that hasn’t been fully recognized and carefully considered up front.

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