FAMILY OFFICE
In its general form, a family office is a wealth manager created by a family to meet its unique wealth and investment needs.
Family office investment services include asset allocation and third-party investment manager selection, and larger family offices sometimes offer
internal investment management as well. In our Reinvention Family Office, due to our multiple focus areas and “family clients”, we diversify our risks, and help our families to move forward while gaining key market perspectives.
Reinvention Family Office is NOT considered to the public as an investment adviser and focus on generational wealth preservation and holdings.
How we work:
This Family office is (1) wholly-owned by family clients; and (2) exclusively controlled by family members / family entities. This means that, while any family client (including key employees) may hold an ownership interest in the family office, control must remain exclusively with family members / family entities and not with its key employees, their affiliated entities or trusts.
The definition of “family client” further includes any nonprofit organization, charitable foundation, charitable trust or other charitable organizations that are funded exclusively by one or more other family clients. While such charitable organization is permitted to be originally established by non-family members, all of the funds currently held by the charitable organization must have come solely from family members, and any funding received from persons other than family members will disqualify the organization from the Family Office Rule exclusion.
Reinvention Family Office is not considered to the public as an investment adviser. Unsurprisingly, if a family office engages in this type of behavior, it must register as an investment adviser under the Advisers Act.
Additionally, the SEC has explicitly indicated that the Family Office Rule exclusion does not extend to family offices serving multiple families – it is only available for single-family offices. For instance, family offices should be aware that the Family Office Rule does not provide an exclusion in a situation in which several families have established separate family offices, but have staffed their family offices with the same (or substantially the same) employees.
Wealth is more often the result of a lifestyle of hard work, perseverance, planning, and, most of all, self-discipline.
— Thomas J. Stanley, The Millionaire Next Door: The Surprising Secrets of America’s Wealthy
HOW DOES THIS AFFECT ME?
In our Family office, we can streamline ventures with a strategic roadmap for the businesses, with changing the approach in funding – from offering loans to Effective Altruism, focusing on quality relations both local but globally. We will manage aspects of the Non-profits within the Family Client network also. Reinvention Family Office is not considered to the public as an investment adviser.
What you do with this structure is up to you to impact lives. See what Effective Altruistic (EA) and how they helping others!
How to start building a business plan
Once you are ready to start moving into action, it is time to begin creating a business plan around how you can implement your strategic vision into actual design.
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- Start by crafting your mission statement, setting forth the anticipated legal structure, and setting clear guidelines for decision making and governance on investments and other key decisions.
- Outline specific cost considerations, bearing in mind staffing (in-house versus outsourced), operations, technology and cybersecurity, taxes, accounting and other advisory services.
- Determine the expected economics model and how costs are to be paid.
- Scope out how much time you expect to commit to the endeavor.
- Define who will lead the office and if other family members are willing and able to participate.
It also can be important to begin determining if there is universal family buy-in around these issues. This is where you start focusing on the details. And remember, you don’t have to go it alone.
AREAS OF CONSIDERATION IN FAMILY OFFICES:
