HFMO Managing Partner Derrick Handwerk discusses the differences between an MFO and traditional financial planners.
HMFO takes an in-depth approach to wealth management and, as a result, we limit our client base to provide a uniquely personalized program and a true, hands-on concierge experience. We spend a lot of time gathering and analyzing information, making recommendations, and assisting in the implementation of your truly customized plan. Your set of initial personalized strategies will be designed to give you a better understanding of your financial life, address your goals, and point out financial opportunities as well as consider risks.
Once the initial phase is complete we constantly monitor our client situation which may change due to the tax laws, legislation or a change in client circumstances.
When we meet with a new client for the first time we begin to gather information and this information gathering process can take several meetings. After which time we take all information and treat it like it was a puzzle. Metaphorically speaking, We dump all the puzzle pieces onto a big table and start going through every bit of information and data. We create piles for each of the following: the tax returns, estate plan, the insurance policies, the investments, and all the proprietary data that we've collected from the client. Then we assimilate all information and start putting it back together in a more effective and efficient manner in order to optimize the inputs and find the missing pieces of the puzzle.
Handwerk Multi Family Office is able to serve your entire spectrum of needs including:
There needs to be a completely different investing approach for the retail client investing $300,000 vs. the high-net worth client. This differentiation encompasses an investment approach that is more than just stocks and bonds: This approach may include:
Protection of capital may best be achieved through integrated, diversified, valuation based approach which is tax aware.
Reviewing the client's existing portfolio and discerning the client's goals, objectives and risk tolerance is important. An investment portfolio will focus on multiple investment horizons, cash flow and drawdown needs along with other tailored objectives.
One approach could utilize the endowment investment philosophy and a wide range of alternative assets.
Outsourced investments should be considered versus in-house, thus allowing for reduced conflict of interest.
Searching for best in breed investments should be ongoing with consolidated investment reporting.
For clients with more than $1 million of investable assets, an institutional platform could be available. These institutional quality investment managers tend to be less expensive and are chosen for their ability to beat their benchmarks, often with less risk.
Taking all aspects of your portfolio including outside assets in a 401k or 403b etc. and analyzing the mix of investments so we can come back to you with a customized, non-cookie cutter mix of diversified investments.
My experiences have been most affluent clients cannot tell the difference in services provided by one financial planner and the next before they engage the advisor. Also, from my experience, most people with less than $10 million of investable assets have never had the opportunity to work with an advisor who works in a holistic and consultative manner and is concerned with the client’s wellbeing.
Investments in securities do not offer a fix rate of return. Principal, yield and/or share price will fluctuate with changes in market conditions and, when sold or redeemed, you may receive more or less than originally invested. No system or financial planning strategy can guarantee future results. Therefore, no current or prospective client should assume that future performance or any specific investment, investment strategy or product will be profitable.