Once the right team is assembled, running a successful democratized family office means shifting the gauge of an advisor’s value away from myopic measures like performance, conventional “share of wallet” concepts or even the frequency of their client contacts.
Instead, advisors should be consistently asking themselves, “Have I done everything I can today to get my clients closer to their goals?” This broader perspective can help advisors identify potential pitfalls such as unexpected impacts from changing tax laws; gaps in insurance coverage that could arise under various “what if” scenarios; or even unforeseen factors that could impact the valuation of a client’s business.
This shift in an advisor’s mentality should extend to the next generation of the client’s family, as well. For example, if a client hopes to turn his or her business over to the children when they reach adulthood, what should the advisor do to not only facilitate that transition, but to help the children prepare to run the business?
The Democratized Family Office Model’s Future
Put simply, the traditional family office and Wall Street institutions space hasn’t kept up with the burgeoning segments of comparatively new wealth holders and other overlooked millionaires across the country.
By building the right teams, cultivating the ability to seamlessly interface with appropriate specialists and shifting their perspective, financial advisors can become part of a democratized family office movement, based on the delivery of a service experience that can forge lasting client relationships that span many decades to come.
Greg Powell is president and CEO of Fi Plan Partners, a wealth management and financial planning firm based in Birmingham, Ala.