Partnering with a qualified wealth manager can significantly impact the growth and preservation of a client’s assets and financial future. However, finding the right fit is not always easy. Before choosing a wealth manager to hire, ask some important questions to learn more about the professional’s background, experience, practices and commitment to customer service.
What Is A Wealth Manager?
A wealth manager is a type of financial advisor who guides and manages the money of clients. While wealth managers are similar to financial advisors, there are some distinct differences.
Wealth managers generally work with high-net-worth clients to help them build or retain their wealth. They also offer more than just investment advice, providing clients with a holistic suite of services that encompass many areas of a person’s financial life. Wealth managers generally take a more hands-on approach to money management compared to standard financial planners.
Questions To Ask A Wealth Manager
Interviewing a wealth manager before hiring can provide clients with insight into whether the money management professional will meet their needs. Not all wealth managers offer the same set of services or follow the same money management practices. When interviewing a wealth manager, ask the following key questions:
1. What Is Your Minimum Asset Requirement?
Wealth managers typically offer their services to the highly affluent and may not accept clients with low net worth. For this reason, clients need to determine if they are eligible. Ask about the minimum asset requirement for wealth management services. Some wealth managers will work with clients with a $200,000 net worth, while other wealth managers set a minimum asset requirement at $1 million or more.
2. How Long Have You Been A Wealth Manager?
Experience is important when working with a wealth manager. Most clients want to ensure that the person they are entrusting their assets and investments with has successfully worked with many high-net-worth clients in the past. While there is no exact answer to this question, aim for a wealth manager that has been working with high-net-worth clients for at least ten years.
3. How Long Do Your Clients Stay With You On Average?
Wealth management is often a life-long process that involves building wealth, eliminating debt and growing investments over time. Many wealth managers have clients that they have worked with for many decades. This long-term commitment shows that the wealth manager is offering quality services and that their clients are satisfied with their investment performance. The number that the wealth manager gives should be close to his or her number of years of experience. For example, wealth managers who have been providing services for 20 years should have some clients that have stayed with them for at least ten years.
4. Are You A Fiduciary?
A fiduciary acts on behalf of their client and considers their client’s interests when making financial decisions. Having a wealth manager who is also a fiduciary is critical. Fiduciaries will only recommend action if it benefits their client and will disclose all details about the transaction, hiding nothing.
5. What Is Your Philosophy About Active Vs. Passive Management?
Not all wealth managers approach money management the same way. Active management occurs when a wealth manager gives a client’s money to a money manager who will try to outperform the money. Passive management is a long-term approach to wealth building and does not include active money managers. Instead, passive management relies on the market alone.
6. How Often Do You Update My Financial Plan?
A person’s financial situation changes over time and a plan that was viable two years ago may no longer be the right fit. It is important to choose a wealth manager that acknowledges these changes and is willing to update a client’s financial plan at least every quarter or as needed.
7. When I Call with a Question, Who Will I Be Talking To?
It is normal for clients to have questions or concerns when trusting another person to handle all their finances. When a client wants to discuss these concerns, it is important that they can talk directly to their wealth manager. Some wealth management firms have junior customer service teams to handle phone calls, but this strategy can leave clients unsatisfied. Choose a wealth manager that provides his or her direct phone number and other contact information.
Ask Campbell Wealth Management These Questions
Wealth management firms offer a wide selection of services to meet clients’ unique needs, such as customized investment solutions, retirement income planning, asset management, financial planning, and budget management.
The experienced wealth management advisors at Campbell Wealth Management help clients ages 55 and older build a secure financial future. Request a consultation today to speak with a professional wealth manager.
