While being very wealthy has countless perks, it does not come without responsibilities. For instance, ensuring the productivity of this much capital is highly important, so that the value of your money continues to steadily grow over time. Well, there is a very effective but less known method to take care of that — and I’m going to tell you more about that today.
“Family offices” are private advisory firms specifically designed to cater to the needs of =high-net-worth individuals, managing their wealth, investments, and other financial matters with a personalized approach.
Family offices are different from the traditional investment firms
You might be thinking that family offices are kind of like regular hedge funds and investment institutions. There’s an important difference, though. Family offices, as their name suggests, operate solely for one family or a group of families. Their scope covers the administration and management of a certain family’s assets to build long-term wealth for them.
Family offices deal with investments, taxing, accounting, real estate management, and all legal matters of their clients — the whole package. Generally, these privately structured companies also manage debt structures, private portfolios, charitable giveaways, and other household or internalized aspects.
My “data-driven decisions” philosophy and the TVP Family Office
I believe that “data-driven decisions” are key to the existence of successful businesses. So, I enacted my TVP Family Office on this very philosophy to implement it in my investments as well. However, the concept of “family offices” has not yet been normalized here in Romania, amid the unstable conditions hovering over the economic landscape since the fall of communism. Fortunately, the investment dynamics are gradually shifting to accommodate advanced western practices. As of late, we are witnessing an increased number of venture capitalists, family offices, and investment funds operating here.
If you ask me the exact reason that pushed me into starting a family office, it was my dissatisfaction with “instinct-based” investment decisions. I have always believed that such impulsive and non-factual judgement is not ideal to handle multi-million-dollar investments. Needless to say, with a whimsical, hunch-based approach, you can only attain short-lived success at most. So, why not make use of the abundant financial information now easily available to us, not attainable around 10 or 20 years ago, for enhancing our investment verdicts?
Based on this mindset, I carefully assembled my team for the TVP Family Office. Namely, I picked out adept specialists and a council of advisors from the businesses that I own or have previously invested in. I am proud to say that the team has been working efficiently to grab suitable investment opportunities, while operating via a multi-angled approach. They manage to generate a comprehensive overview of the situation, realize the growth channels, and develop factual and detailed analysis reports backed by solid research. I now feel more comfortable than ever in the investment decisions I take, backed by their oversight and advice.
Eventually, I would say a family office is the best way to power up your investments in a personalized and professional way. It is also long-term thinking, since we can pass on the created wealth to the next generations — not to mention use our experience and expertise to inspire other local investors and entrepreneurs.
Working with a family office diversified my capabilities and broadened my outlook
Let me say here that associating with my family office has not only helped me in staying content regarding all investment-related matters, but has also developed my personal skills and expanded my perspectives.
In a family office environment, work is regularly changing, and the team constantly adjusts its approach to bring out the most effective solutions. There, you have to let go of the old and static ways of calculations and analysis, since people skills with a flexible attitude are more important in this domain.
Therefore, collaborating with my family office partners, including the accountants, lawyers, and investment and real estate professionals, greatly augmented my financial acumen regarding how to best achieve my investment goals.