Fractional Family Office®
If you’re like most Americans, when it comes to financial services, you’re acting as your own “general contractor.” You’ve found a group of professionals, including us, who you can trust with your core financial needs: accounting, tax preparation, tax planning, financial planning, risk management, and investment management. You’ve turned us loose to do our individual thing as best as we can. And then you sit back and hope that somehow, we’ll get you where you need to go.
Here’s the problem. While you may have the best advisors in each of their individual fields, there’s rarely any coordination between them. If the tax hand, for example, doesn’t know what the investment hand is doing, you can wind up paying thousands more in tax than you should. This obviously introduces unnecessary risk to your overall plan and puts unnecessary roadblocks in the way of your financial success.
We see this all the time, sadly. Clients come to us and say “I sold my rental property,” or “I sold some stock,” or “I took a distribution from my IRA . . . now how do I handle the taxes?” There are lots of ways we could have helped . . . if we had known before the client acted!
Acting as your own general contractor doesn’t just mean risking mistakes that better coordination could prevent. It means you’re on your own when it comes to navigating new and unfamiliar challenges. Sure, Siri can help you find answers to specific questions about annual exclusion gifts, Roth IRA conversions, and required minimum distributions. But there’s no substitute for an experienced advisor looking over your shoulder with a global perspective. Attorneys understand this problem well when they warn that, “a lawyer who represents himself has a fool for a client.”
Most business owners and affluent investors manage to muddle through. But they make expensive mistakes and miss lucrative opportunities they could have taken advantage of if they had a more holistic perspective. Worst of all, they never even realize how much they’re costing themselves by going it alone!
The wealthiest Americans don’t worry about inconsistent advice from different financial services providers. They bypass the retail market entirely and set up an entire company solely dedicated to managing their family’s finances. It’s called a family office, and it takes charge of every aspect of the family’s affairs: accounting, tax preparation, tax planning, financial planning, risk management, and investment management. Instead of relying on separate advisors to pitch them separate solutions, they put all those services under a single umbrella. Instead of listening to product pitches, they find a single trusted professional to coordinate “best of breed” solutions in each category.
The Family Office Exchange, a Chicago-based membership organization for family members, family office executives, and other advisors, estimates there are between 3,000 and 6,000 family offices in the U.S. This number has risen from less than 1,000 worldwide a decade ago. This spike in growth proves that once successful people learn about the family office concept, they’re hungry for the level of service and coordination that family offices provide.
The problem, of course, is that establishing, staffing, and maintaining a family office is pricey. That’s why there are so few of them, and they’re generally limited to families with $30 million or more in assets.
So . . . we know when it comes to managing your finances, acting as your own “general contractor” can be an expensive mistake, even when your “subcontractors” like your accountant, investment manager, and insurance agent are all individually outstanding in their fields. We’ve seen how the richest Americans in the country establish family offices to eliminate that danger. But you don’t have the assets to justify an office of your own. So how can you take advantage of this “best in class” financial solution.
Welcome to the Fractional Family Office®! A Fractional Family Office® takes all the core financial services that successful business owners and investors need – accounting, tax prep, tax planning, financial planning, risk management, and investment management – and puts them under a single, integrated umbrella offering coordination and expertise that individuals simply can’t match on their own.
The Fractional Family Office® then parcels that higher level of service out to clients who don’t need it on a fulltime basis. If you’re familiar with fractional CFO services, fractional jet ownership, or even timeshare ownership, you’ll immediately grasp how the Fractional Family Office® works and why it’s such a game-changer.
How does that benefit you? Bourbonnais Tax Associates LLC, is a Fractional Family Office®. As a Fractional Family Office® through a partnership with the Tax Master Network® (a nationwide network of over 400 tax planning professionals) and Financial Gravity® Family Office Services, we’re integrating financial planning, risk management, and investment management into our service.
We would love to tell you more about how to put our Fractional Family Office® service to work for you to reach your financial goals more effectively, efficiently, and with lower taxes and overall costs. Schedule a call today!