The Primary Responsibilities of a Trustee

Vogel Consulting is an independent multifamily office offering an integrated approach to wealth management. Vogel Consulting provides a full suite of family office solutions in investment advice, tax and accounting, business consulting, and estate planning.

One of the roles of a family office is to work with and guide trustees in making the right decisions toward trust assets. An individual or firm given control and legal obligation to manage assets on behalf of the beneficiaries, a trustee is appointed by the trustor (the person who created the trust) or by court order. Primary responsibilities of a trustee include administration, investment, and distribution of trust assets. 

Administering trust assets can require a comprehensive knowledge of tax and fiduciary rules as well as securities management and real estate. The trustee maintains records, files tax returns and reports periodically to the beneficiaries. The trustee must segregate the trust assets from his or her property to avoid any disputes or liabilities in case of loss.

A trustee also is responsible for making prudent decisions when acquiring, investing, and selling assets so they remain profitable for the beneficiaries. When distributing assets, the trustee must be impartial and act in accordance with the terms of the trust. The beneficiaries cannot dictate the terms of the trust, nor can they persuade the trustee to change the terms.

Developing and Implementing an Education Curriculum for Families

Vogel Consulting offers a wide array of wealth management services for family offices. However, for families to get the most out of these services, they must understand what is being offered. Vogel Consulting combines wealth management services with family education to broaden the knowledge and thinking of family member clients.

In many cases, families that need independent family office assistance have members with varied levels of understanding of technical finance and management concepts. If this imbalance is not addressed at the gate, some family members will feel left out. This is why Vogel’s team develops unique education curricula for the families it works with - to bring everyone on the same page.

The family education curriculum covers concepts such as tax and estate planning, implementation of dynasty trusts, management shifts to nonfamily executives, and redrafting stock redemption plans. The lessons are carried out during family meetings, in small group-specific sessions, or during individual coaching sessions.

Basic concepts are taught first and then layers of complexity are added depending on the progress of family members. Complex concepts are taught more than once to ensure every family member understands them. The lessons are held informally, creating an interactive and open atmosphere for asking questions. As a result of this educational curriculum, family members feel more confident discussing financial matters and meetings and decision making become more productive.

Understanding Emerging Market Investments

Vogel Consulting is a multi-family office that offers unique service platforms to cater to the specific needs of their clients. Advising on nearly $3 billion of assets, Vogel Consulting continues to take a keen interest in both the domestic and international financial markets. The company carefully examines emerging market equities before making strategic investment decisions and recommendations.

Emerging market investments include equities that are issued by developing economies primarily in U.S. dollar denominations. They offer new investment opportunities, growth potential, and diversification benefits to investors. The growth of investments in emerging countries could offset windfalls in the domestic country.

Members of BRIC countries (i.e., Brazil, Russia, India, and China) are believed to have had substantial economic growth over the last decade. South Korea is another emerging market with a rich economy and a growing number of consumers. On the other hand, countries in the Middle East, Southeast Asia, and Africa are still in the process of developing strong, stable economies.

While emerging markets offer many investment opportunities, investors should also take into consideration the risks associated with foreign investment, including foreign exchange issues, as well as political and economic risks. Returns from bonds and stocks are produced in the local currency and must be converted to domestic currency. Currency fluctuations can cause uncertainties and significantly reduce the value of one's investment. Meanwhile, political instability creates distrust and drives away investors. Poor monetary policies, lack of infrastructure, and a high inflation rate also do not help investors maximize their investments.

Three Differences between Traditional and Alternative Investments

Founded in 1993, Vogel Consulting is a multifamily office that offers an integrated approach to wealth management. The professionals at Vogel Consulting look at alternative investments, including private equity, to drive higher returns, especially for high-net-worth families.

Investing is one of the many ways to generate profit from existing wealth. You can either opt for traditional investments such as cash, bonds, and stocks, or choose alternative investments in commodities, hedge funds, managed funds, and real estate investment trusts. The two types of investment vary significantly in terms of required minimum amounts, fees, liquidity, and return on investment, or ROI. 

- The starting investment in traditional funds is between $500 to $3,000, while alternative investments require a substantial initial amount of $500,000 to $1 million plus fees, including up to 2 percent of the fund’s assets and 20 percent of profits. 

- Cash and bonds are short-term investments, and stocks within mutual funds can be redeemed easily if needed. In contrast, assets like real estate require more time to liquidate. 

- Alternative investments tend to generate higher returns compared to traditional investments, even during a financial crisis. However, alternative investments also carry a higher risk.

How a Multi-Family Office Can Help You Build Financial Stability

Based in Brookfield, Wisconsin, Vogel Consulting is a multi-family office wealth management firm. Providing a full suite of services to high net worth families, Vogel Consulting offers an integrated approach to wealth management. 

Would you benefit from the integrated services of a multi-family office? Very much so. Here are some of the ways a multi-family office can help your family preserve and grow wealth: 

-Financial planning. A multi-family office will help you straighten out your financial affairs, making it simpler for family members to secure and access financial records, quantify long-term goals, and receive reports on family assets. 

-Cash flow management. With an inside view of your family’s cash flow needs, a multi-family office will help you set up a retirement plan to maintain your family’s lifestyle in your golden years. 

-Investment advisory. After helping you craft an investment policy statement that expresses your objectives and limitations, a multi-family office will then develop an investment portfolio that follows through on these objectives. The office will continuously review the portfolio’s returns, comparing them to relevant benchmarks to measure success and rebalancing items to maintain an appropriate asset mix.

Getting to Know FOX

With more than two decades of experience as a dedicated multi-family office, Vogel Consulting has grown to be an integrated firm that provides a wide array of family office services. Founded in 1993 by Rhona Vogel, Vogel Consulting offers solutions in taxation, estate planning, and investment advisory, making the company an important member of the Family Office Exchange or FOX.

FOX is a network of very wealthy families and their family offices. It was created in 1989 to equip member family offices with the technical knowledge needed in order to best serve their clients. The peer-to-peer approach allows the members to gain understanding in how other families operate, the concerns they face, and the solutions they have adapted to their situations.

For nearly 30 years, FOX’s advisors have known each member and the goals they pursue on behalf of their clients. FOX provides needed assistance so that the members gain access to appropriate information, and features a group of 15 subject-matter advisors and experts in the fields of operations, tax planning, transition planning, investment strategy, among others. FOX has offices in New York, San Francisco, Chicago, Sydney, and Madrid.

An Overview of Vogel Consulting’s Customized Reporting Service

Vogel Consulting has been multi-family office designed to serve multiple families from the outset, as opposed to the familiar pattern of a single family office opening its doors to other families. Vogel Consulting has over 20 years of experience managing nearly $3 billion in assets and providing outstanding services including private investment, taxation and accounting, estate planning, and customized reporting.

Vogel Consulting’s customized reporting service comprises consolidated investment reporting, tax reporting, and estate diagrams. The company delivers electronic or paper reports on a monthly or quarterly basis to families. The reports are available in a graphic format for a more concise and interactive presentation or a narrative form for detailed reading.

With consolidated investment reporting, families can compare their portfolio performance with weighted benchmarks in the industry. The reporting also includes family asset allocation information that provides insight into the family’s portfolio in terms of growth, protection, inflation, and liquidity.

The firm's ability to provide accurate tax estimates is one of the reasons why Vogel Consulting is ahead of the curve. Anticipating taxable income and scheduling tax payments is necessary for a family that owns several businesses and manage diverse assets. Tax reporting helps the family fulfill its regulatory responsibilities and control cash flow at the same time.

The estate diagrams integrate personal financial statements to provide a complete representation of the family’s estate. Estate diagrams give family members the opportunity to monitor how their assets shift in value as markets change and strategically transfer assets when necessary.

The Significance of Multi-Family Office in Estate Planning

Vogel Consulting is a successful, multi-family office that specializes in cash flow and lifestyle management, customized reporting, and financial planning. Vogel Consulting offers advanced estate planning services, which include customized estate diagrams, gifting guidelines, charitable records administration, and foundation establishment.

Estate planning requires a tremendous amount of work by professionals who understand their role individually and holistically. Instead of hiring a separate accountant, attorney, business consultant, and an insurance agent, a high-net-worth individual or family can avoid all the bureaucracy involved in the estate planning process by going with a multi-family office. 

From drafting estate documents to calculating estate taxes and creating a financial model, working with a multi-family office that provides end-to-end estate planning services is a better choice compared to individual specialists. The wealth advisors from a multi-family office have the advantage of customizing an estate diagram that takes into account the family’s history, assets, financial capacity, and investments. They are also in an ideal position to communicate the estate beneficiary designations during family meetings.

A Summary of Quarter 2 of 2018

For over two decades Vogel Consulting has been offering wealth management services to family offices across the country. Recently, Vogel Consulting published a report discussing the market’s performance in the second quarter of 2018. Here are a few details:

-Equities
US equity indices were high at the close of the quarter despite suffering a few tumbles along the way. NASDAQ hit record highs, so did the Russell 2000 index. These gains were attributed to the good performance of tech and small cap stocks. 

Across the Atlantic, European equity markets were weak and Japanese markets exhibited the same softness seen in the first quarter. Emerging market equities were down during the period, hurt by trade tensions and a strong dollar.

-Fixed income
Bond returns in the United States were negative because of rising yields born from the anticipation of a tighter monetary policy. 

-Monetary policy
The US Federal Reserve raised interest rates 0.25 percent. The Fed forecasted further rate hikes in the future. In Europe, the European Central Bank stated it would stop buying bonds by year-end. 

-Overall economy
The US economy showed positive growth buoyed by the well-performing service and manufacturing sectors, and an improving labor market. Retail sales and housing starts remained up.

Considerations for Multigenerational Wealth Planning

Wealth management firm Vogel Consulting provides reliable financial planning advice backed by nearly 25 years of experience. Recognized for its estate and tax planning services by Family Office Review Magazine, Vogel Consulting caters to multigenerational families seeking to protect their assets and navigate wealth transfers.

High-net-worth families often have complex financial planning needs when making decisions regarding generational wealth transfer. Under the guidance of an experienced, knowledgeable wealth manager, individuals can consider several asset transfer options that reduce tax burdens and streamline the decision-making process. 

For example, life insurance policies and various types of trusts are proven ways to maintain asset value throughout the wealth transfer process.

In order to make sound financial decisions, it is crucial that the family identifies its predominant values and financial goals. For example, families that prioritize education can work with financial advisors to set up multigenerational college funds or an endowment gift to a university that has contributed to the family’s legacy. 

Every generation brings more family members into consideration. Financial advisors can help larger families establish an appropriate governance model. In some families, assets may be divided into subsets managed by different family branches. Families also may opt to create a council led by older members who are tasked with decision-making.

Estate Plans Should Be Monitored and Reviewed Periodically

For nearly 25 years, Vogel Consulting has offered wealth management solutions to clients across the United States. Vogel Consulting leverages unique service platforms to offer value in the areas of business accounting, investment consulting, and estate planning and monitoring.

Once drafted, an estate plan should be monitored and reviewed to keep it up to date with changes in either the client’s financial position or the environment, both of which can affect the outcome of the plan.

When reviewing an estate plan, considerations include changes in the number of beneficiaries, the capacity of the beneficiaries to handle an inheritance, and changes in values of the client’s assets. Other important considerations involve changes in the capacity of designated trustees to carry out their duties and new estate tax laws that will affect the estate’s overall tax liability.

Here is an example to put things into perspective: Juliet created an estate plan with her financial planner in 2015, in which she bequeathed 50 percent of her estate to her children and the rest to her foundation. Over the course of her life, her personal assets will either increase or decrease in value. Either shift will affect the outcome of final disbursements. She will want to review the plan periodically to balance the disbursements to beneficiaries.

What if a beneficiary passes on or the foundation loses a major donor, and hence needs more funding? Both of these will prompt a review of the estate plan to determine if it will still create the desired outcome, which is to ensure the financial security of both her children and the foundation.

Overall, there are several occurrences that can alter Juliet’s financial position or affect the capacity of her beneficiaries. This is why a periodic review of her estate plan is necessary.

Introduction to Vogel Consulting