Advertisement
Financial Planning

3 Keys to Wealth Management

Look at how your financial adviser (or potential financial adviser) handles these three functions to be sure you're getting the investment help you need.

You hear a lot of talk these days about wealth management, a term that's probably overused and often misunderstood. It seems to mean different things to different people.

In fact, I suspect some people have no idea what it means beyond that it has to do with getting advice and assistance with your investments. In essence, it's keeping your financial house in order and possibly improving your financial situation.

Advertisement - Article continues below

But what does that entail, exactly, and how do you know your financial adviser—or an adviser you're considering hiring—is truly giving you the assistance you need?

Let's break it down so that you have an idea of what you should be looking for and considering when building a financial strategy to fit your needs and searching for the financial professional to help guide you along the way.

To me, wealth management consists of three parts:

1. Investment Consulting

This first piece is something qualified financial professionals can provide. Some financial professionals may be better suited or experienced than others for your individual situation.

2. Advanced Planning

This is the point where many—if not most—financial professionals apply the brakes. It's where you'll start seeing a little separation if you're in the market for an adviser who will do more than just suggest stocks, bonds or mutual funds in which you should invest your money.

Advertisement
Advertisement - Article continues below

Advanced planning includes growing clients' investments, but it also involves a whole lot more. For example, I've found that the number one concern that high-income clients have is asset preservation. So this part of wealth management involves helping clients protect their investments from excessive taxation and other fees and costs, both now and in the future.One reason they worry about their assets being nibbled away, of course, is that they want to transfer their wealth to their families, not to the government.

Advertisement - Article continues below

In many cases, they also like to have some of those assets available for charitable giving. My experience has been that about one in four clients wants to donate some—and in some cases, a lot—to charity, which can be complicated and, if not done properly, wasteful.

The important thing to understand here is that advanced planning—including aspects of wealth enhancement, wealth transfer, asset preservation and charitable giving—is a powerful thing and, if an adviser doesn't present plans that align with your financial goals, maybe that adviser isn't the one for you.

A good adviser should be able to help you identify and dodge financial roadblocks that may impede your investments.

3. Relationship Management

Finally, the third leg of wealth management is how an adviser relates with his or her clients.

Relationship management consists of two parts. First, as the term implies, it's how an adviser interacts with clients. In my view, the best way to start that relationship is with a discovery meeting to determine a client's hopes, dreams and goals, and to identify any gaps between those and the numbers in their savings, portfolios, investments and any insurance contracts they own. The meeting shouldn't just be about financial consulting. It should go far beyond that.

Advertisement - Article continues below
Advertisement
Advertisement - Article continues below

The second part of relationship management involves enlisting the assistance of other professionals. Clearly, with wealth management, a number of areas come into play that may be outside the financial professional's skillset. So it's important that an adviser has access or the ability to refer clients to a more comprehensive team, which might include an attorney, a certified public accountant or other professionals.

So, there it is: the "secret" to finding an adviser who not only will show you the way toward managing your investments but maybe even offer up something more.

Bryan S. Slovon is founder and CEO of Stuart Financial Group, a boutique financial services firm exclusively serving retirees and soon-to-be retirees in the D.C. metro area. He is an Investment Adviser Representative and insurance professional.

Investment Advisory Services offered through Global Financial Private Capital, LLC, an SEC Registered Investment Adviser. Neither Stuart Financial Group nor Global Financial Private Capital offer tax or legal advice. Please consult your personal tax advisor or CPA and an estate planning attorney to determine what strategies may be best for your financial situation and estate planning goals.

Advertisement

About the Author

Bryan S. Slovon, Investment Adviser

Founder and CEO, Stuart Financial Group

Bryan S. Slovon is founder and CEO of Stuart Financial Group, a boutique financial services firm exclusively serving retirees and soon-to-be retirees in the Washington, D.C., metro area. He is an Investment Adviser Representative and insurance professional.

Advertisement

Most Popular

18 Things You Can't Return to Amazon
Smart Buying

18 Things You Can't Return to Amazon

Before tossing these items into your virtual shopping cart, be sure to read Amazon's return policy first.
September 17, 2020
Election 2020: Joe Biden's Tax Plans
taxes

Election 2020: Joe Biden's Tax Plans

With the economy in trouble, tax policy takes on added importance in the 2020 presidential election. So, let's take a look at what Joe Biden has said …
September 18, 2020
7 Foreign Countries Luring Americans to Work Abroad During the Pandemic
careers

7 Foreign Countries Luring Americans to Work Abroad During the Pandemic

Work remotely – really remotely – in these appealing destinations offering special visas for American workers.
September 18, 2020

Recommended

A Step-by-Step Guide to Being an Estate Executor
retirement

A Step-by-Step Guide to Being an Estate Executor

Whether you’re planning ahead for your own heirs or have been asked to serve as an executor of an estate for someone else, it pays to understand what …
September 17, 2020
10 Things You'll Spend Less on in Retirement
retirement

10 Things You'll Spend Less on in Retirement

We spend a lot of time worrying about running out of cash in retirement. But you might be surprised to see some of the things you'll find yourself spe…
September 16, 2020
Considering a Structured Settlement? Watch Out for Fraud by ‘Bad Apples’
wealth management

Considering a Structured Settlement? Watch Out for Fraud by ‘Bad Apples’

It’s happened again: Millions in payments to child victims of medical malpractice were stolen by fraud. Before you agree to any structured settlement,…
September 8, 2020
Drawing Down Retirement Savings in a Pandemic
Coronavirus and Your Money

Drawing Down Retirement Savings in a Pandemic

Tapping the right accounts at the right time matters. Knowing how much a retiree can spend each year without running out of savings in old age is even…
August 7, 2020