No manual exists on how to set up a family office. Considering that each family’s circumstances and needs are unique, this stands to reason.
However, while the makeup and operations of individual family offices may be different, they have one thing in common: Setting up and maintaining a bespoke set of services is often expensive and very inefficient. Like many businesses, a family office needs a professional and qualified staff, ample physical space and high-quality technology, just to name a few. There must be a better, more cost-effective way for wealthy families to manage their household finances.
At Coastal Bridge Advisors, we’ve established the “virtual family office” (VFO) service model for our clients. Under this approach, we offer a range of services—from investment management, financial planning and risk management to tax, legal and philanthropic advice. We not only rely on our in-house resources, but importantly, a vast outside network of third-party advisors (lawyers, accountants, insurance providers, etc.). These are professionals with whom our clients are already working or professionals to whom we introduce them.
Our role is to coordinate these elements in a collaborative, effective manner in the service of our primary goal: delivering financial peace of mind for the families that we serve.
As a registered investment advisor (RIA) we have a fiduciary duty to our clients. In essence, this means we must act and provide investment advice in their best interest, providing full and fair disclosure of all material facts, including any conflicts of interest that could impact the impartiality of our advice. As a fiduciary, we are managing the VFO with our clients’ best interests at heart. Equally so, we are delivering this comprehensive array of services at a cost and commitment of time that we believe our clients would be unable to achieve were they to set up their own family office.
Often, clients will come to us describing a variety of complexities: multiple advisors, private investments (not being tracked), outdated trust and estate plans, a lack of advanced tax planning and on and on. Does this sound familiar? Wouldn’t it be nice to make one phone call to see all this handled for you without the cost and burden of managing your own family office?
In fact, our VFO service model can provide:
• Investment management—To review, analyze and summarize existing marketable and private assets; review any new deals that may be presented to you; and consult with current financial advisors to review your overall allocation, performance and asset-class exposure
• Performance management—To aggregate and report on investments and providing online access to view all holdings to offer a full picture of your net worth
• Trust and estate planning—To coordinate with the best outside CPAs and attorneys to help ensure your trust and estate plan is being carried out properly for all family members
• Family governance/dynamics—To educate younger generations on family legacy desires; and set up, review and maintain foundation and family-investment policy statements
• Liability management—To review insurance policies, currency-exposure strategies, concentrated stock advice and interest-rate management
• Banking services—To facilitate mortgages, loans, leases and other tailored lending solutions
While this is a mere sampling of our VFO services, we understand our larger role is to provide guidance and support in any way needed. If we don’t have someone in house, or know someone who can provide proper counsel, we’ll find the professionals who can.
You tell us where you want to go, and we will work to get you there. By being able to collaborate with the “best of breed” in tax, trust and estate matters and the investment-management industry, we can deliver all the family office services you need without the cost, time and aggravation of “doing it yourself.”
Coastal Bridge Advisors is a registered investment advisor with its principal place of business in the state of Connecticut. Registration does not imply a certain level of skill or training. Coastal Bridge may only transact business in those states in which it is registered or notice led, or qualifies for an exemption or exclusion from such requirements. For information pertaining to the registration status and disclosures of Coastal Bridge, please contact Coastal Bridge or refer to the Investment Advisor Public Disclosure (IAPD) website (www.adviserinfo.sec.gov). Coastal Bridge does not make any representations as to the accuracy, timeliness, suitability, completeness, or relevance of any information prepared by any unaffiliated third party, whether referenced or incorporated herein, and takes no responsibility therefore. All such information is provided solely for convenience purposes only and all users thereof should be guided accordingly. This presentation should not be regarded as a complete analysis of the subjects discussed. All expressions of opinion reflect the judgment of the authors as of the date of publication and are subject to change without prior notice.