Company News | | Apr 21, 2020
During the past few weeks, as businesses have shifted to remote working and financial markets have become more volatile, high-net-worth and ultra-high-net-worth clients have contacted us with a number of questions. They want to know the current status of their net worth and how they should respond, if at all. For example:
How much cash do I have? With the market down significantly, how much equity do I have?
How often should I be speaking with my investment adviser?
Where do I stand with my taxes for the year and how much cash should I have in reserve for the tax liability? How does the CARES Act affect my business and tax situation?
How do I update my will even though my attorney’s office has closed? Is my child’s trust okay?
Are all my documents in order? How can I access them virtually? Is it secure?
The ability to serve as an advocate for our clients, manage and preserve their wealth, and provide them with accurate, reliable, and timely information, especially in times of crisis, are the primary functions of our multi-family office. We’re in constant communication to ensure that every decision is made with the client’s approval so they maintain complete control of their wealth.
What Is a Multi-Family Office?
A multi-family office serves as the “quarterback” for wealth management for high-net-worth and ultra-high-net-worth individuals and families. Services include but are not limited to tax planning and compliance, consulting, investment management, risk management, recordkeeping, governance, succession planning, and philanthropic management. Ultimately, the services provided depend on the needs, goals, assets, and preferences of the client.
The Prager Metis Multi-Family Office Model
In our multi-family office, we’re able to leverage resources and knowledge for all our clients. For example, if a client asks about their will and how to update it, we’ll get the right answers and share that information with our entire team so they can pass it along to other families.
Given the size and capabilities of Prager Metis, we can usually find answers to client questions internally. However, we also have an extensive network of outside resources to contact for insight, which we then research and verify before sharing with our clients.
Our team has worked hard to become one of the most technologically advanced multi-family offices in the industry. This allows us to work smartly and efficiently for our clients, regardless of the circumstances.
During the coronavirus pandemic, we’ve been able to function while our physical offices are closed. If clients want to see their net worth, they can securely login to modern software from any device and access valuable, real-time information without worrying about compromising the sensitivity and confidentiality of the data.
One way we’ve been able to help several clients is by modernizing their approach to financial management. We’ve walked into homes where investment statements and physical mailings were stacked (or scattered) on a table. We’ve worked with our clients to streamline and create efficient and secure ways to access information.
In each case, we’ve been able to integrate and aggregate multiple accounts into investment software, which allows us to see each client’s net worth at any time based on prior business day close value. Many high-net-worth and ultra-high-net-worth individuals tend to be concerned about cybersecurity, which is why we use the best technology available to minimize risk.
We’re Always There for You
These are trying times and many people are experiencing unprecedented adversities. People are working remotely, trying to balance work responsibilities with homeschooling their children. Birthday parties, graduations, dance recitals, and entire sports seasons are being cancelled. Many people are feeling a sense of isolation and loneliness. You would be hard-pressed to find a single person who hasn’t been impacted by the coronavirus – personally, professionally, physically, emotionally, or psychologically.
Our multi-family office team is always there for our clients. Our team has always been encouraged to spend time working remotely so they’re ready for unexpected events and disruptions. We don’t have to spend time adapting to a different work environment.
Some clients have asked us to check in with them once per day since the coronavirus pandemic started. Others have asked us to join them for calls with their attorneys or investment advisers so we can ask questions that our clients hadn’t considered. We give them confidence in their decision-making process and comfort that their finances are being managed responsibly.
The coronavirus pandemic is forcing everyone to navigate the unknown. Having access to all financial data, expertise, and an advocate for your well-being has never been more important. For high-net-worth and ultra-high-net-worth individuals and families, now is the perfect time to explore the benefits of a multi-family office. To learn more about multi-family office and how Prager Metis can make your world worth more, please contact Jay Goldberg or Blair Feldman.