The right wealth management consultant will be with you and your family for decades, guiding your financial strategy as you develop, maintain, and eventually pass on your fortune. This is a big responsibility and you should treat it seriously. The best way to make sure you select the right consultant for your situation is by carefully evaluating the options available. But with so many financial professionals to choose from, where do you start?
Competence and professional experience are key factors. You want a wealth management consultant with a track record of strong performance and deep expertise in multiple economic cycles. In addition, you should check for compliance and regulatory issues. You also want to look for a firm with a proven track record of client retention.
Another important factor is how a wealth management consulting firm supports their clients. For example, you should understand whether they have a centralized service model or work with individual advisers who are supported by a team of support staff. This can impact your ability to get the help you need when you need it.
It is also critical to understand the difference between a wealth management consultant and an investment manager. The former focuses on investment management and seeks to optimize asset allocation and yield while the latter specializes in holistic financial planning and takes a client-centric approach to wealth stewardship.
When choosing a wealth management consultant, consider their experience and fees. A high-net-worth client may expect an adviser with significant industry knowledge, experience working in multiple economic cycles, and a strong track record of success. You should also look for a firm that offers services in your region and has a presence in your community.
While you should be wary of the financial industry’s reputation for conflict of interest, it is also essential to find a consultant who will put your interests first. In this context, a fiduciary relationship is a crucial element in ensuring the integrity of your advisory relationships. You can learn more about fiduciary obligations and what to look for in a trusted advisor by reading our recent white paper, Managing Conflicts of Interest: The Importance of Fiduciary Obligations in the Financial Advice Space.
There are several challenges facing the US wealth management sector, including margin pressure from investors shifting their assets to passive index funds and downward pressure on current advisory fees. In addition, the emergence of a new generation of investors is forcing firms to devise fresh ways to court them. Discover how leveraging market data can help you overcome these challenges and drive measurable business outcomes. wealth management consulting