We use a multi-tiered data hierarchy.
Portfolios are the foundation of this hierarchy which includes IRA accounts, brokerage accounts, models, etc.
Households are simply groups of portfolios. For example, a household is created when several portfolios are added to a client's page. With a household you are able to generate reports and run stress tests on all the portfolios at once.
Clients are a way of storing all information pertaining to a client. This includes the risk tolerance score, survey results, holdings and recommendations.