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What is a Multi Family Office?

Fintech is an industry inundated with buzzwords, and we often overlook the full meaning of the most basic terms as a result. With many firms marketing themselves as a Multi Family Office amid the pandemic chaos, not all are true MFO's by definition.

Here's a little refresher on what qualifies a firm as an MFO!

1- Breadth of services. MFO's are known for comprehensive investment management, (inclusive of private investments) and for their multi-generational estate-planning and wealth-transfer strategies. Other primary services include tax planning, cash management and bill paying, insurance and risk management, philanthropy and family governance and, of course, preparing financial reports.

2- Experienced team with diverse skill set. Based on the wide array of advice being provided to their clients, their professionals tend to have extensive knowledge in investments, financial planning, taxes, legal, estate planning, risk management, insurance, cash management, budgeting, philanthropy, and lifestyle management. And when an expert in one of those fields isn't available, MFO's are generally open and transparent about outsourcing to the best in the business.

3- High-touch services. This refers to a more tailored offering to any given family, kind of like a financial and lifestyle concierge. These services can range from investment strategy to managing household staff, overseeing second homes and rental properties, and coordinating family vacations.

4- Fees. These can vary in terms of both quality and quantity. Models include hourly, fixed retainers, and asset-based fees. Fees also depend on the complexity of the family's financial needs and the services being provided.

If the above seem like they'd make your life a bit less complicated in regard to managing your money, perhaps it's time to make the jump into the world of FO's!

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