There are many options that affluent individuals and their families can consider for accumulating, managing, and preserving wealth. One popular option that has been gaining increasing traction among high-income earners and the “millionaires next door” is the concept of the Virtual Family Office (VFO). As a personal CFO (Chief Financial Officer) based in Brentwood, Tennessee, I’ve seen the value and benefits of this modern approach that brings high-end wealth management to Brentwood and other parts of the U.S.
What is a virtual family office?
A VFO is an outsourced solution that provides the same services as a traditional family office but is more cost-effective and flexible. Ultra-high-net-worth families have used traditional family offices for decades to coordinate the services they need to manage and preserve their wealth. However, the traditional family offices’ high minimum asset requirements limited their services to the ultra-wealthy. On the other hand, the VFO model leverages technology and the expertise of a team of professionals to deliver a comprehensive and tailor-made suite of services, often at a fraction of the cost of the traditional family office model.
Read our popular Quick Guide: “Wealth Management in Nashville, TN.”
So why should you consider hiring a wealth management firm that provides a virtual family office service? Here are a few more important advantages:
Comprehensive, Coordinated Services
The primary advantage of a virtual family office is its wide range of services, all tailored to meet a client’s financial needs. Services range from complex planning, investment management, tax advice, and producing a legacy to philanthropy and ongoing lifestyle financial management. The right VFO can provide a streamlined, effective approach to wealth management by consolidating these services under one umbrella. The result is a comprehensive solution that addresses not just your financial needs but also your personal and lifestyle needs.
Cost Efficient
The virtual model allows for significant cost savings. Instead of maintaining an in-house team of professionals, the VFO outsources services to a network of experts. These include investment advisors, lawyers, accountants, and other specialists who work as a team. This saves on staff costs and ensures that you have access to top-tier expertise whenever required.
Personalized Attention
Despite the virtual nature of the VFO, clients can still expect high levels of personal attention and service. Wealth management firms offering VFO services recognize that every individual and family is unique, with their own set of financial goals and aspirations. They can provide highly personalized services to help you pursue your financial objectives.
Flexible and Scalable
The VFO model is highly flexible and scalable, which can adapt to meet your changing needs over time. As your wealth grows and your needs evolve, your VFO can quickly scale up services, ensuring you always have the right level of support.
Avoid Hidden Risks
There are hidden risks when HNW investors rely on multiple professionals who are operating independently of each other. They are like a football team with no quarterback. One hidden risk is conflicting advice. For example, your financial planner, CPA, and estate planner all provide different advice, and it is up to you to determine which advice you will follow. Another hidden risk is duplicate fees. For example, you pay your financial planner and CPA twice for the same advice. Your VFO can be your financial quarterback.
Privacy and Security
Virtual family offices leverage state-of-the-art technology to provide secure and private platforms for managing your wealth. You can be confident knowing your financial information is safe while enjoying the convenience of accessing your financial data anytime, anywhere.
Our role as a personal CFO has evolved with the advent of the virtual family office. As more affluent individuals and families seek coordinated, comprehensive, and personalized wealth management, the virtual family office model has emerged as an effective solution. It is not just about managing wealth anymore; it is about aligning it with your values and life goals while providing convenience, flexibility, and cost efficiency.
At Silberman Wealth Strategies, we specialize in providing personal CFO and VFO services to individuals and families across the United States. Where family offices were traditionally only utilized by the ultra-rich, Silberman Wealth Strategies now extends this comprehensive financial service to the millionaire living next door. Simply put, we employ a seasoned team and collaborate with the other professionals in your life to ensure a smooth, convenient experience for you.
Our Virtual Family Office services include:
Financial Stress Test: We evaluate the viability of your current financial strategy, including specific plans and investments. We validate the suitability for your needs and identify any potential risk factors that could undermine your objectives or place you and your family at risk in the future. Our comprehensive financial stress testing employs a disciplined methodology that scrutinizes your goals, modifies scenarios, and weighs costs to chart your best course of action
Comprehensive Financial Planning: Our strategy aids in holistic wealth management rather than focusing on a single perspective. This all-encompassing approach necessitates teaming up with your other advisors, ensuring you receive optimal advice and solutions to fulfill every important goal.
Concierge Approach: As a successful, busy individual, we understand your time is precious. We strive to surpass your service expectations with courtesy, professionalism, and efficiency.
We know you have other options for who will help you achieve your financial goals now and in the future. We are a wealth management firm that appreciates your accomplishments, recognizes the dedication and hard work you’ve put into achieving your objectives, and offers premium, personalized wealth management services.
Connect to learn more about Silberman Wealth Strategies’ VFO and CFO services for wealthy individuals and families.
The views stated in this piece are not necessarily the opinion of Cetera Advisor Networks LLC and should not be construed directly or indirectly as an offer to buy or sell any securities. Due to volatility within the markets, opinions are subject to change without notice. Information is based on sources believed to be reliable; however, their accuracy or completeness cannot be guaranteed. Past performance does not guarantee future results. Cetera does not offer direct investments in commodities. Converting from a traditional retirement account to a Roth retirement account is a taxable event. A Roth IRA offers tax free withdrawals on taxable contributions. To qualify for the tax-free and penalty-free withdrawal of earnings, a Roth IRA must be in place for at least five tax years, and the distribution must take place after age 59½ or due to death, disability, or a first time home purchase (up to a $10,000 lifetime maximum). Depending on state law, Roth IRA distributions may be subject to state taxes. Re-balancing may be a taxable event. Before you take any specific action be sure to consult with your tax professional. The return and principal value of bonds fluctuate with changes in market conditions. If bonds are not held to maturity, they may be worth more or less than their original value
Registered Representative offering securities and advisory services through Cetera Advisor Networks LLC, member FINRA/SIPC, a broker/dealer and Registered Investment Adviser. Advisory services also offered through SILBERMAN WEALTH STRATEGIES, INC. Cetera is under separate ownership from any other named entity. Located at 320 SEVEN SPRINGS WAY STE 250, BRENTWOOD, TN 37027
For a comprehensive review of your personal situation, always consult with a tax or legal advisor. Neither Cetera Advisor Networks LLC nor any of its representatives may give legal or tax advice. All investing involves risk, including the possible loss of principal. There is no assurance that any investment strategy will be successful. Some IRA’s have contribution limitations and tax consequences for early withdrawals. For complete details, consult your tax advisor or attorney. Distributions from traditional IRA’s and employer sponsored retirement plans are taxed as ordinary income and, if taken prior to reaching age 59 ½, may be subject to an additional 10% IRS tax penalty. A diversified portfolio does not assure a profit or protect against loss in a declining market.
