Family Office Software and Virtual Family Office Advantages

Jake Claver

In this video we discuss some of the software used to handle the day to day operations of a family office and also what advantages a virtual family office might have for you in place of a single family office or multi-family office.   Find more from Jake Claver by visiting the links below:  🖥Digital Ascension Group - https://www.digitalfamilyoffice.io 🖥Join my Mastermind Community at https://mastermind.beyondbroke.com  📱Official social media📱 Twitter/X -   / beyond_broke   Instagram -   / jakeclaverqfop   LinkedIn -   / jacobclaver   TikTok -   / jakeclaverqfop   Medium -   / jake-claver   Substack - https://jakeclaver.substack.com/

Transcript

00:00Today we're going to discuss the benefits of a virtual family office and why, if you're going

00:04to have a liquidity event, you might start looking at a virtual family office versus some of the other

00:09models like a single family office or a multifamily office. So let's get into it. In a virtual family

00:14office, you have a centralized platform that aggregates all the things that you might need

00:18to know. It would be all the communications between the professionals that you're using

00:22for each one of the services. It'll be reporting on your dashboard that shows you how your

00:27investments are doing, what your portfolio looks like, and then lastly, all of the accounting in

00:33order to operate and file taxes efficiently so that you can work with, you know, the professionals in

00:37your group and make sure that you're mitigating those taxes. Us here at Digital Ascension Group,

00:42we are a virtual family office provider and the three things that we leverage for those three

00:46components are iPaladin, which is a blockchain-enabled communication platform, secure, it allows you to

00:53communicate with all the professionals across every different discipline, aggregated in one location,

00:57and it also creates efficiencies. So if they get a message, there's no he said, she said, I didn't

01:03get it. It's logged right there on the blockchain. You can see when they viewed it, you can see when

01:07they opened it, you can see if they've executed it. Secondary to that, we have Adapar, which is

01:13kind of the leader in the space when it comes to reporting for investment portfolios at this time

01:19for family offices or even RIAs. It allows the integration of alternative investments and digital

01:25assets. And that's why we chose to partner with them because those are kind of our specialties.

01:29There's other solutions that provide just traditional financial vehicles that people

01:33have invested in, whether that be bonds, stocks, IRAs, mutual funds, you know, treasuries. If you're on

01:41that side of things and you're in public markets, most family offices do have an allocation to that,

01:47but they have a much broader scope of the investments, especially in private equity,

01:50real estate, uh, could be business M&A, uh, transactions. It could be businesses that

01:56they're running. Um, there's a lot of other things that need to be in, in the scope of that

02:01dashboard that, um, a lot of softwares don't provide. And then lastly, you know, good old QuickBooks.

02:09Most family offices, even large single family offices use QuickBooks for their accounting,

02:13uh, or Intuit. Um, it's just become the standard and I I'm hopeful that in the future,

02:19there'll be something that, that marries the reporting software with the accounting software

02:24so that there's not the double entry, but currently that's the case. And that's why we have three

02:28different softwares that we all push to a centralized platform that you can review.

02:33Uh, but with that, you know, because we're outsourcing a lot of these things, um, from a

02:38centralized hub, you're not having to employ these people if you, like you would, if you had a single

02:42family office or even a multifamily office, um, they're discharged based on the project and the

02:47scope of their work, right? So they're a consultant, they're a W9, uh, you're paying them for their

02:52expertise and their time, uh, or again, maybe a certain project, uh, and you can negotiate those

02:58things within a scope of work or an SOW and, um, then be willing to pay them on that contract versus

03:05having to pay for all their benefits, their healthcare, sick time, you know, all the other

03:10things that are involved with having an employee. So that's where you reduce your costs. And then you've

03:15got the flexibility of that as well, right? So if you don't have these people specifically hired to

03:19you, uh, and you're paying their salaries, you can cut them at any time, you know? Uh, and I guess

03:25you could fire an employee, right? If you found out they weren't going to work out, but most times,

03:30depending on what state you work with, um, you have to have record that you reprimanded them and

03:35otherwise they have recourse and they can come after you for workers comp and other things.

03:40And so that's, that's another component of the flexibility, right? You're, you're able to plug

03:44and play advisors as needed. Uh, we work with you, uh, to, to plug those people in. You can bring

03:50people to the table. Uh, a lot of times, if you are working with a multifamily office, they're going

03:55to try to push out the advisors that you had before, um, to, to get more money from you, right? And

04:02that's in their interest. And it might be in your interest too, depending on if the advisor is doing

04:06what they're supposed to or not. It all just depends on the situation. But with a virtual

04:12family office model, again, you're able to communicate more effectively across everything.

04:15That's all within scope and it's reported right there in your dashboard. Um, and the reason that

04:20you're able to do this is these technologies, right? So traditional family offices, some of them

04:26leverage one or all of these technologies within a single family office. Uh, but oftentimes, you know,

04:31some of these things are still done manually. They might have a CPA that works there.

04:35That's just been there for forever and knows everything. Um, same thing for the communication

04:41component. And it's hard to really nail that down when there is a problem between two people

04:46that are supposed to have done something who's at fault, right? But if it's logged right there

04:51on the blockchain, pretty, pretty hard to mess that up. So anyway, hopefully this will give you

04:58some perspective on, uh, what a virtual family office is, how you can set it up for yourself.

05:03Um, if that's something that you're interested in, you can reach out to us. We're more than happy to

05:07help you with it. Again, we specialize in digital assets, uh, and alternative investments. So, uh,

05:12real estate, private equity, M&A transactions. Hopefully this has been valuable for you. If you

05:19haven't liked and subscribe, we would love to have you on the channel more often. And, uh, with that,

05:23we'll see you guys on the next one.

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