We have been getting a variety of questions recently around wealth management services for family offices and, though we focus on financial consulting as a whole, this trend is something we thought would be worth covering in a blog particularly because family offices are many times being left in the dark in a few ways.
As we covered in a previous post around financial consulting, many times wealth management firms, financial advisors and others in the mix are being compensated not based on their performance but instead contractual obligations regardless of the results in the end – getting commissions/percentages on managing X amount of money, making recommendations/decisions on trades, and the list goes on.
On the flip side, looking at a financial consulting firm that has no stake in the game and is purely focused on securing/furthering your success as a family office, that’s where high-level data/insights come into play. And the beauty in that is having someone (or a team) with no stake – only focused on helping you become successful – that ends up producing the best results in the end.
And that ties back to some of the ways family offices are being left in the dark because they trust the process, though the process currently in place maybe isn’t the best. And the difference between taking a $500M portfolio and improving it even 1% annually due to understanding the world/ecosystem around you can be magical in many ways as opposed to spending the same amount in management fees that may go somewhere – or not.
This is only a snapshot of what The Practical Contrarian is doing for firms around the world and we’re excited to see what the future holds.