Why lifestyle management is the new necessity for family offices

The family office landscape is changing as new aspects of the family members’ lives come into focus. Lifestyle management is the key to managing clients’ expectations outside of their financial sphere and it is quickly going from being optional to being essential to family offices.
family office lifestyle management

What you need to know

  • Lifestyle management is the art of helping to add value to all areas of clients’ lives, outside of the traditional realm of the family office, such as finance or real estate management. With the world’s largest-ever wealth transfer close at hand, it is uniquely important to listen to the needs of the next generation.
  • Alternative assets now also include luxury goods, many of which have outperformed the traditional investment vehicles over the last 10-15 years. When it comes to cars, watches or fine art, your lifestyle manager will be a strategic resource in deciding what makes sense as an investment as well as a statement for the family members.
  • Lifestyle management can also add a layer of anonymity which is a subject that mustn’t be neglected. In current times when it’s never been easier to track someone in the public eye, it’s never a bad idea to do things more discreetly, through a third party.
Luxury & Lifestyle Updated on October 21, 2022

The world is ever-changing and family offices have to adapt and evolve in order to remain relevant to their clients and their evolving needs.

Originally the family office was conceived as a conservative fortress to guard the family wealth, invest it and shield it so that it may grow and be safe for generations. Over the last few decades, the world has become much more nuanced and with the impending wealth transfer close at hand, family offices are required to do more in order to stay at the top of their game. This has become a matter of relevance and listening to what the clients are asking for.

Alternative assets and luxury goods have blended so much over the last years, that many valuable acquisitions like watches and cars have become investments, which at times have even outperformed some financial markets. Identifying the right trends and products is the task of a well-versed lifestyle manager because investment specialists are not expected to know the ins and outs of the luxury market. So when, for example, a client wants to buy a watch and is asking for advice, then it is best to know which one will appreciate and which will depreciate over time. The same goes for cars as many can become money pits, while others can be truly valuable.

Lifestyle management is an art form and has little in common with the concierge service or VIP service offered by most top tier credit cards. Much rather, it is the art of helping clients add value in all areas of their lives outside of the traditional realm of the family office, such as finance or real estate management. Furthermore, lifestyle management enhances the client experience as it deals in things that generally excite the client such as travel, luxury or art.

About the Authors

Tim Daum

Tim Daum

Premium Lifestyle & Medical Services

Tim Daum is an expert in bespoke lifestyle management and medical services and the co-founder of Veltracon Lifestyle AG, an agency that serves high-net-worth individuals.

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