Building a Family Office: A Scottsdale Success Story
Eric and Betty, a sophisticated older couple in Scottsdale, had been among the most generous contributors to our non-profit.
Over time, their curiosity about my background grew, and as they asked questions, they uncovered my track record in wealth management.
I still remember the day Eric called and invited me to his office for a meeting. After a casual lunch, we shook hands, and with a warm smile, he opened with, “Your reputation precedes you.”
We both laughed, and I immediately thought, I like this guy — I’m going to do well here.
The plan was to talk for an hour, but as we discussed everything from art and real estate to market trends and family stories, four hours flew by.
I was starving, and Eric noticed. “It’s getting late, and you must be hungry,” he said. Betty chimed in, “Our son’s picking us up for dinner soon. Let us recommend a great spot for you.”
I was about to close the conversation by asking when I could start, but Eric beat me to it. “I won’t be here tomorrow, but Betty can get you started if you’d like to come in.”
“Sure!” I said. “I’ll be here at 8 a.m.”
Diving In
The next morning, Betty laid out the scope of their portfolio. They owned a mix of commercial real estate, stocks, bonds, fine art, and businesses like laundromats and a self-storage facility. Their holdings were substantial, well-organized, and ripe for strategic growth.
Betty mentioned we’d wrap up early that Friday, as Eric would be back on Monday to discuss their goals in detail. That weekend, I brainstormed strategies to make their money work harder.
I envisioned selling some of the bonds and reallocating the proceeds to high-dividend stocks with strong upward trends. The market was hot, and I believed a 30–50% return over the next year was achievable. Meanwhile, their real estate and business income would provide a safety net in case my plans didn’t perform as expected.
Getting Started
On Monday, Eric returned, and we reviewed their assets in depth. He casually mentioned, “I sold all our bonds and some stock over the weekend. You’ll have $500,000 to work with. Let’s see what you can do.”
I smiled and thought, Challenge accepted.
That week, I started digging into every detail of their portfolio.
I reviewed credit card receipts, contacted overdue accounts, and met with property managers to ensure their operations were running smoothly. To my relief, their real estate was in excellent shape — modern buildings, no deferred maintenance, and steady tenants.
Crafting the Plan
By Friday, I had a solid investment strategy in place: a mix of trending stocks, undervalued opportunities, and high-dividend plays. Over the weekend, I polished the plan, printed copies, and prepared to present it on Monday.
Eric and Betty were thrilled with the proposal. “Can you implement it this week?” Eric asked.
“Absolutely,” I replied.
The Execution
I began executing the plan, making calculated trades in trending stocks and strategic allocations to high-dividend equities.
Eric also suggested a unique idea: an interest-bearing insurance policy, leveraging his expertise in insuring artwork. This provided a stable anchor for their portfolio, complementing the more dynamic trades.
The market conditions were favorable, and my strategies paid off. While the rapid trades sometimes felt like “churning,” the results spoke for themselves.
A Year Later
At the end of the year, we sat down to review the numbers. The portfolio had grown to $1.1 million — more than doubling the initial investment.
Eric leaned back, grinning. “Can you do it again?”
I laughed. “I don’t know,” I said honestly. “But I’ll give it my best shot.”
And so began a rewarding partnership with one of the most enjoyable families I’ve ever worked with — a testament to what can happen when preparation, opportunity, and trust come together.
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This is the last article in this series.
If you missed any of the earlier articles, here is the list:
