What is Wealth Part 2 of 3
Recently, it has come to our attention through conversation with clients, prospects and friends that there is a false perception about the term wealth management. That it is only for those who have substantial income, assets or complex financial needs. This, no doubt is often true, but is much too narrow in its definition. It is our strong view that wealth management is the specific protection, enhancement and investing of a lump sum of money with a known goal or plan. This lump sum of money is often the result of savings, inheritance, 401k/IRA rollover, asset sale (i.e. real estate) or the desire to make a change from a current situation or advisor that is not meeting your expectation or needs. Where this differentiates itself from generic investing or planning is the unique attributes and opportunities that come with a lump sum versus the accumulation of that sum. Wealth management separates itself by going beyond simple product sales, accumulation planning or pie charts and hypothetical reports. The ability to diversify and increase opportunity while managing the risk is a critical step in wealth management, but not the only one. Proper structure, beneficiary planning and unique and unbiased investment access are just some of the beneficial aspects of Criterion Wealth.
The dollar amount is not nearly as important to us as the personality and desire of the person, family or business who owns it. Far too often, the financial industry is dissecting its business model by absolute dollar values, rather than by building a business plan around properly serving personality characteristics and the execution of certain goals. We are often asked, “What is your minimum account size for taking on a new client?”. Unfortunately, the industry has communicated this as the initial and primary screen for access. We disagree. Whether someone has $50,000 or $50,000,000 the ability to accurately and satisfactorily serve them is based on how we have structured our practice and for what kind of investor personality and goals they are working toward or have decided on. A recent study published in a Wall Street Journal article stated that 81% of investors with $1,000,000 or more in investable assets plan to take money away from their current advisor, and close to 70% plan on leaving them entirely. This does not surprise us at all. Investors (of all sizes) are frustrated. They are frustrated not only with the lack of execution by their advisor, but by the industry, the lack of transparency, the sense of conflicts of interest, etc. We are not entirely immune from some of these disappointments, but the effort and communication to keep clients on course is critical. Not only critical to our business success, but more importantly to our relationship (which always goes beyond the wall of an office) and the success of our clients. Never let the amount, either the sense that it is too small or too big, be the reason for not seeking a competent, transparent advisor.
Next time, we will discuss the current market environment, and more on our unique wealth management process……
The dollar amount is not nearly as important to us as the personality and desire of the person, family or business who owns it. Far too often, the financial industry is dissecting its business model by absolute dollar values, rather than by building a business plan around properly serving personality characteristics and the execution of certain goals. We are often asked, “What is your minimum account size for taking on a new client?”. Unfortunately, the industry has communicated this as the initial and primary screen for access. We disagree. Whether someone has $50,000 or $50,000,000 the ability to accurately and satisfactorily serve them is based on how we have structured our practice and for what kind of investor personality and goals they are working toward or have decided on. A recent study published in a Wall Street Journal article stated that 81% of investors with $1,000,000 or more in investable assets plan to take money away from their current advisor, and close to 70% plan on leaving them entirely. This does not surprise us at all. Investors (of all sizes) are frustrated. They are frustrated not only with the lack of execution by their advisor, but by the industry, the lack of transparency, the sense of conflicts of interest, etc. We are not entirely immune from some of these disappointments, but the effort and communication to keep clients on course is critical. Not only critical to our business success, but more importantly to our relationship (which always goes beyond the wall of an office) and the success of our clients. Never let the amount, either the sense that it is too small or too big, be the reason for not seeking a competent, transparent advisor.
Next time, we will discuss the current market environment, and more on our unique wealth management process……
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