You might associate family offices with legacy planning for the likes of the Rockefellers or Carnegies, historically linked to immense wealth. However, today’s family offices, particularly virtual ones, extend beyond the ultra-rich.
Definition: A family office is a comprehensive wealth management entity that handles the financial affairs of individuals or families, providing services such as investment management, financial planning, tax optimization, and legacy planning.
Your wealth isn’t just about accumulating riches; it’s a tool to shape your future and leave a lasting legacy. Whether passing it to heirs or supporting causes, everyone should consider their wealth’s impact.
Before delving into legacy planning, understanding how a virtual family office operates and differs from the traditional family office is crucial. Join Jordan as he introduces ‘Chapwood 360’ and explores the benefits of a VFO in today’s video.
Summary:
- Virtual Family Office Flexibility: A virtual family office stands apart from a traditional family office by offering flexible customization, allowing individuals to pay only for necessary services while ensuring comprehensive coverage of all financial aspects in their legacy planning.
- Legacy Components: Investment management, tax planning, and estate planning are fundamental components crucial to shaping a family’s legacy and securing its financial future.
- Expert Collaboration: Rather than depending on a single individual for all financial matters, the strategy involves engaging specialists in each domain. This collaborative approach ensures tailored expertise in investment, tax, and estate planning, optimizing outcomes for the family’s financial well-being.
As mentioned in the video, Chapwood 360 is how we approach a virtual family office at our firm. Because of some of the flexibility issues with a traditional family office, we prefer this method of legacy planning. Here is an example of that flexibility in play:
Moe has both a financial advisor and a CPA, yet he’s unsure if his financial bases are adequately covered. Their sporadic meetings revolve solely around his portfolio and tax matters, leaving Moe uncertain about the synchronization of their efforts and the lack of involvement of an estate attorney for trust establishment to bypass potential probate issues.
From a financial advisor’s standpoint, neglecting taxes and estate planning in the overall financial strategy is not good. Similar to an orchestra conductor only focusing on one part of his ensemble as mentioned in the video, it will leave weaknesses in the result.
A well-coordinated team could include an estate attorney, CPA, business manager, and financial advisor, aligned to provide clear and concise solutions for the client’s needs. This collaborative approach lies at the core of our system, Chapwood 360.
This is not to mention that the current plan does not consider Moe’s desire to contribute to several organizations he cares about after passing, as well as ensure his children do not use the wealth he passes down in the wrong way.
Furthermore, we have established relationships with reputable CPAs and estate attorneys and offer intuitive software for visualizing financial plans and projections all designed to fit the needs of legacy planning by placing the right specialist on the right task.
To discover more about Chapwood 360 or initiate your virtual family office, reach out today to embark on your financial journey to design your legacy.
Thank you for reading this week’s “Making Sense with Ed Butowsky” article. To view the rest of Ed’s articles, you can click here or you can also check out Ed’s personal website to learn more about him.
For more information, email Jordan McFarland at jordan@chapwoodinvestments.com.
Disclosure
Chapwood Investments, LLC is a SEC Registered Investment Advisory Firm. No mention of a particular security, index, derivative or other instruments in this material constitutes an opinion on suitability of any security. The information and data in this material were obtained from sources deemed reliable. Their accuracy and completeness are not guaranteed. At any given time, principals at Chapwood Investments, LLC may or may not have a financial interest in any or all of the securities or instruments discussed in this material. The guests appearing in material do not receive compensation or provide endorsements or testimonials. Past performance is not indicative of any future results.
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