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| Family Office |
Our Financial Factotum
Constance Gustke
02/02/2004
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When entrepreneur Eugene Rosenberg found that he could no longer juggle his own finances, he turned to a trusted financial advisor, a certified public accountant, to act as his personal chief financial officer. Rosenberg, who founded the national retail chain Bob’s Discount Furniture, was finding it difficult to evaluate all the business offers he received from other entrepreneurs. "Rather than me making the decision, I’d run it by [my CFO]," Rosenberg says. Now, he talks to his CFO—who handles taxes, bill paying, trusts and acts as an advisor on his business dealings—nearly every day.
 As our wealth increases, the number of professional advisors in our lives seems to increase exponentially. We often need personal financial planners, brokers, lawyers and accountants in addition to all those involved in our business interests. A survey conducted last summer by the Spectrem Group, a consulting firm, found that most wealthy Americans are turning to a plethora of specialists, rather than placing their personal financial and legal affairs in the hands of one generalist. However, the survey also showed, and our experience clearly demonstrates, that we also need one trustworthy advisor to coordinate the activities of all the others.
"Personal CFO" and "family CFO" are increasingly popular buzzwords that describe this person. The term is a loose one: there is no consensus on what constitutes the ideal CFO—it all depends on our individual needs. The CFO can be a professional at a multifamily office, the head of our own family office, a professional financial advisor or a lawyer or accountant. Entrepreneurs like Rosenberg, who find themselves swamped by their growing business activities, may see business experience as a prerequisite. In most cases, the family CFO must be capable of juggling a wide range of tasks, from overseeing investments and scrutinizing taxes to evaluating aircraft purchase or lease opportunities.
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