What's the difference between a family office and wealth management?

Family offices and traditional wealth management firms serve different market segments with distinct service approaches:

Family Office Characteristics:

- Serves ultra-high-net-worth families ($25+ million)

- Comprehensive, holistic service model

- Dedicated team or entire organization for one/few families

- Customized solutions and high-touch service

- Broader scope beyond just investments

Traditional Wealth Management:

- Serves high-net-worth clients ($1-25 million typically)

- Primarily investment-focused services

- Shared advisor model with multiple clients

- Standardized service packages

- Limited non-investment services

Key Service Differences:

Family Office Services:

- Investment management and alternative investments

- Tax planning and estate planning

- Family governance and next-generation education

- Philanthropic advisory

- Lifestyle and concierge services

- Direct access to investment opportunities

- Coordination of all financial advisors

Wealth Management Services:

- Investment management (stocks, bonds, mutual funds)

- Basic financial planning

- Insurance planning

- Some estate planning guidance

- Limited tax planning

When to Choose Each:

- Family Office: $25+ million, complex needs, multi-generational planning

- Wealth Management: $1-25 million, primarily investment management needs

The choice depends on your wealth level, service needs, and desire for customization versus cost efficiency.