Wealth Advisement Could Change Due to Coronavirus
Businesses of all types are adjusting to the new normal, and wealth advisory services are changing with the times, too. Some of these changes eventually might not be for the best.
You are now subscribed
Your newsletter sign-up was successful
Want to add more newsletters?
Delivered daily
Kiplinger Today
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more delivered daily. Smart money moves start here.
Sent five days a week
Kiplinger A Step Ahead
Get practical help to make better financial decisions in your everyday life, from spending to savings on top deals.
Delivered daily
Kiplinger Closing Bell
Get today's biggest financial and investing headlines delivered to your inbox every day the U.S. stock market is open.
Sent twice a week
Kiplinger Adviser Intel
Financial pros across the country share best practices and fresh tactics to preserve and grow your wealth.
Delivered weekly
Kiplinger Tax Tips
Trim your federal and state tax bills with practical tax-planning and tax-cutting strategies.
Sent twice a week
Kiplinger Retirement Tips
Your twice-a-week guide to planning and enjoying a financially secure and richly rewarding retirement
Sent bimonthly.
Kiplinger Adviser Angle
Insights for advisers, wealth managers and other financial professionals.
Sent twice a week
Kiplinger Investing Weekly
Your twice-a-week roundup of promising stocks, funds, companies and industries you should consider, ones you should avoid, and why.
Sent weekly for six weeks
Kiplinger Invest for Retirement
Your step-by-step six-part series on how to invest for retirement, from devising a successful strategy to exactly which investments to choose.
I’ve been working from home in recent days, since social distancing is a big part of my firm’s new policy to protect us and our clients from exposure to the coronavirus. The client projects I have already begun to implement are surprisingly unimpaired by my location and lack of access to paper files and a well-equipped resource room.
My planning services, including financial planning, are mostly on hold until my clients find a reliable new normal from which to springboard. My remaining clients have been calling mostly to express an interest in additional investment allocations in stocks. But almost all of them are reaching out or responding positively to my engagement for simple social interaction, reassurance and understanding.
With all levels of government advising, and sometimes ordering, closings and cancellations of almost every possible human encounter, we are experiencing an unsettling halt of normal interactions. This will change the delivery of wealth advisory services, and something important may get lost in the translation.
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
The Importance of Going Local
Most of my clients live within 25 miles of my office, and others are within a two-hour drive. Only a small number would require a two-hour flight or more to visit. My client book already limits most periodic visits to monthly, quarterly or annual events, outside of project implementation. And my clients, who lead busy lives, are used to conference calls, online access to performance numbers, forms and proposals and email conversations. Nonetheless, they certainly appreciate the personal touch of in-office or in-home meetings.
Today’s new normal may actually level the playing field for remote wealth advisory firms that have historically relied on a network of online trading and financial analysis to build their advisory business. If your primary wealth adviser no longer sees you in person, does it really matter if he/she sits five minutes from you or five states away? I’m here to say that yes, it does matter.
Why Having a Local Adviser Matters
My clients are subject to both national and local economic, political, social and financial factors. Because I am subject to most of the same factors, my understanding of and reaction to my clients’ circumstances amounts to a kind of shorthand intuition compared with out-of-state advisers. In my town, people still ask where you went to high school to establish base assumptions or find instant commonality. Local knowledge of where our community came from and how it got here is important to projecting where it is heading.
Ethically, people still expect more from members of their own community. After all, we owe a lot for our development and success to our community. We may have been educated somewhere else (not me, actually), but our community involvement and local service establishes a connectivity that assures our clients that I am both credible and reliable. After all, as the saying goes, you know where I live. Accountability is a clear advantage to the local adviser.
Finally, interdependency. This is the assumption that we are all in this together — not just as to the current coronavirus calamity, the market correction or the economic downturn, but all of it. My clients and I, our entire community, is in this together. We all have an equal stake in our local business operations, restaurants, entertainment, community events, local sports, education, libraries, police, fire and other emergency responders, and in the safety and success of our spiritual centers, parks, roads and neighborhoods.
This community interaction is essential to our common good. We have always valued this the most in all our relationships. We will find our way together. You can rely on me and I will rely on you.
-
How Much It Costs to Host a Super Bowl Party in 2026Hosting a Super Bowl party in 2026 could cost you. Here's a breakdown of food, drink and entertainment costs — plus ways to save.
-
3 Reasons to Use a 5-Year CD As You Approach RetirementA five-year CD can help you reach other milestones as you approach retirement.
-
Your Adult Kids Are Doing Fine. Is It Time To Spend Some of Their Inheritance?If your kids are successful, do they need an inheritance? Ask yourself these four questions before passing down another dollar.
-
The 4 Estate Planning Documents Every High-Net-Worth Family Needs (Not Just a Will)The key to successful estate planning for HNW families isn't just drafting these four documents, but ensuring they're current and immediately accessible.
-
Love and Legacy: What Couples Rarely Talk About (But Should)Couples who talk openly about finances, including estate planning, are more likely to head into retirement joyfully. How can you get the conversation going?
-
How to Get the Fair Value for Your Shares When You Are in the Minority Vote on a Sale of Substantially All Corporate AssetsWhen a sale of substantially all corporate assets is approved by majority vote, shareholders on the losing side of the vote should understand their rights.
-
How to Add a Pet Trust to Your Estate Plan: Don't Leave Your Best Friend to ChanceAdding a pet trust to your estate plan can ensure your pets are properly looked after when you're no longer able to care for them. This is how to go about it.
-
Want to Avoid Leaving Chaos in Your Wake? Don't Leave Behind an Outdated Estate PlanAn outdated or incomplete estate plan could cause confusion for those handling your affairs at a difficult time. This guide highlights what to update and when.
-
I'm a Financial Adviser: This Is Why I Became an Advocate for Fee-Only Financial AdviceCan financial advisers who earn commissions on product sales give clients the best advice? For one professional, changing track was the clear choice.
-
I Met With 100-Plus Advisers to Develop This Road Map for Adopting AIFor financial advisers eager to embrace AI but unsure where to start, this road map will help you integrate the right tools and safeguards into your work.
-
The Referral Revolution: How to Grow Your Business With TrustYou can attract ideal clients by focusing on value and leveraging your current relationships to create a referral-based practice.
