Why the Family Office Model Is the Next Big Shift
Have we seen “Great Levelings” before in financial services? Absolutely. In fact, many of you have lived through them, often without realizing just how revolutionary they were.
Today, the Family Office model is shifting from exclusive to accessible. But this isn’t the first time the walls of elite investing have been breached. Over the last century, the financial industry has experienced a series of breakthroughs that brought once-privileged tools and strategies to everyday investors. These moments didn’t just create convenience—they created opportunity, and they created vast wealth. For tens of millions of middle to upper-class American families, they redefined who gets to build wealth and how.
Let’s examine some of the most significant milestones in modern financial history—and how they have gradually but inexorably contributed to the most accessible and consumer-friendly wealth management industry in world history.
Mutual Funds: The First Big Breakthrough (1920s–1970s)
Once upon a time, diversification, liquidity, and professional management were exclusive privileges of the wealthy. To build a balanced portfolio, you needed deep capital and direct access to private bankers. That changed with the rise of mutual funds.
By pooling investor money and offering access to diversified, professionally managed portfolios for as little as $250, mutual funds cracked open the gates. What began as a niche product for institutions evolved into a household staple, particularly with the rise of 401(k) plans and IRAs.
Today, over 100 million Americans own mutual funds. And firms like Fidelity, Vanguard, and American Funds have become the engines of retirement savings for the middle class.
Discount Brokerages and DIY Investing (1975 Onward)
Another major shift happened in 1975, when the SEC abolished fixed brokerage commissions. That gave rise to discount brokerages—firms like Charles Schwab—that offered trades at a fraction of the traditional cost.
Suddenly, retail investors could place trades on their terms, without depending on expensive full-service brokers. Commissions dropped from hundreds of dollars to near zero. Self-directed investing exploded. And so did the concept of financial independence.
What once took a Rolodex and a firm handshake now takes a phone call—or a few clicks.
Online Trading, ETFs, and the Rise of Modern Portfolios (1990s–2000s)
In the 1990s and early 2000s, online trading platforms like E*TRADE and TD Ameritrade gave investors real-time access to markets and research tools. What was once reserved for Wall Street analysts is now available to anyone with an internet connection.
Alongside that, evolution came ETFs (Exchange-Traded Funds). First launched in 1993, ETFs combined the low cost and diversification of mutual funds with the flexibility of stocks. Today, they’re a cornerstone of both advisor-built and self-directed portfolios, with U.S. ETF assets exceeding $7 trillion.
These tools didn’t just reduce costs. They brought transparency, flexibility, and control to millions of investors.
Robo-Advisors and Fractional Shares: Lowering the Barrier Again
In the 2010s, robo-advisors like Betterment and Wealthfront offered professionally managed, algorithm-driven portfolios with as little as $500. Features like tax-loss harvesting and automatic rebalancing—once the domain of high-net-worth individuals—became standard.
Then came fractional shares and no-fee trading, led by firms like Robinhood, Schwab, and Fidelity. Now, someone could buy $5 worth of Amazon or Tesla, regardless of the full share price, and fully participate in formerly unreachable equities.
These innovations weren’t just bells and whistles. They were radical shifts that welcomed a whole new generation of investors, especially Millennials and Gen Z, into the markets.
TAMPs and Advisor Enablement (1986 Onward)
Meanwhile, for financial advisors, the game was changing too. Turnkey Asset Management Platforms (TAMPs) gave solo and independent advisors access to institutional-grade portfolio management and infrastructure.
Rebalancing, tax-aware investing, and performance reporting, once only possible with a team of analysts, were now available to small firms and individual advisors. That helped fuel the rise of the RIA model and gave advisors freedom to focus on client relationships, not back-office operations. The fee-only fiduciary advisor came into full flower.
The Family Office, Redefined (2020s)
Today, we’re in the middle of the next Great Leveling, and ultimately, the most positive development of all: the democratization of the Family Office model.
For decades, Family Offices were reserved for ultra-high-net-worth families—those with assets of $100 million or more. These clients had access to tax coordination, estate planning, legacy services, philanthropic advising, and holistic financial management—all under one roof, and delivered without conflict and with complete transparency.
But through technology, outsourcing, and strategic platforms like ours at Financial Gravity, that model is now available to affluent and mass affluent clients—those with $100,000 to $10 million in assets.
At Financial Gravity, we believe this is the next frontier. It’s no longer just about portfolios. It’s about coordination, strategy, and integration. And it’s about empowering advisors to offer this premium experience, without needing to build a Family Office from scratch.
Why It Matters
Each of these moments—mutual funds, ETFs, robo-advisors, and now, the benefits of Family Offices—represents more than convenience. They represent access. They mark the shift from exclusivity to inclusion. And they reflect a larger truth: real innovation in finance doesn’t just create more products—it makes more wealth and security for Americans.
As advisors, we’re proud to be part of this leveling trend—helping clients achieve high-level outcomes without high-level complexity or cost.
