New York, NY (PRWEB) May 03, 2012
The Hedge Fund Managers turned physicians’ advocates say that saving just 25% of a $350,000 annual income should yield over $7 million by age 65. For many high income earners this is not the case—their wealth, the greatest resource outside of their health, is squandered due to poor planning, bad advice from advisors who are not professional investors, working with non-fiduciary entities, and other circumstances not serving their best interests.
The world’s most prosperous families of the last 300+ years knew how to guard against this. They stopped taking advice from salespeople and spared no expense when it came to finding and employing the best possible team to preserve, protect, and grow their wealth. In 2010 Paul Sullivan wrote an article for Dealbook announcing Oprah Winfrey’s decision to set up a Family Office for hers.
In addition to privacy, having “unconflicted advice” is what investors, such as Ms. Winfrey, and those running Family Offices strive for. While in the past it remained out of reach for all but the families with $100 million or more, today, the first Physician Family Office (PFO) has revolutionized the concept by making it available to physicians and their families with as little as $5 million.
“The Physician Family Office gives doctors access to the tools and advice used by the richest dynasties of the last several hundred years, and, they have the opportunity to build generational wealth by receiving unbiased guidance,” says Steven Abernathy.
The National Association of Personal Financial Advisors found that in the U.S., with over 1 million financial representatives, less than 2,500 are registered fiduciaries, that is, professionals who are legally bound to act in the investor’s best interest.
“Determining who is a fiduciary vs. who is a salesperson, even in the aftermath of the greatest recession of our lifetime, can be tricky, says Brian Luster, money managers and companies are still not accountable 100% of the time. It’s not always obvious to those outside of the Wall Street environment who’s a fiduciary and who’s not—particularly given the fact that some broker dealers are able to wear both hats, which is legal, just not ethical.”
In his recent New York Times op-ed piece, Greg Smith pointedly addresses this.
“When people work hard and put their trust in money managers, it’s vital that their interests be served fairly and objectively,” says Abernathy. “This isn’t for everyone; it’s a boutique service. And for those who have the means to act deliberately and strategically in every area of their lives by hiring top-tier professionals to manage their homes, art collections, travel, and more, why wouldn’t they opt for the best management for their wealth? When we do well, our members do well; we share a sizable percentage of our profits directly with our member shareholders.”
At present the company only accepts a clientele of thought-leading physicians. However, as more investors become informed and want the best options for their wealth planning and management, Abernathy and Luster believe their model, dedicated to serving the specific and unique needs of a group of like professionals, will be emulated.
Recently The Physician Family Office was named one of 2012’s Best Financial Advisers for Dentists in Dental Practice. In 2011 they also received this as well as being named on the 2011 Best Financial Advisers for Doctors list in Medical Economics.
Steven Abernathy and Brian Luster are physicians’ advocates and founders of the first Physician Family Office (PFO) in the country. The Physician Family Office is independent, employee-owned, and governed by its Advisory Board comprised of thought-leading physicians. To learn more visit: http://www.physicianfamilyoffice.org.
For more about Steven Abernathy and Brian Luster contact Kira Citron at 212-293-3401 or kcitron(at)abbygroup(dot)com.