What Should I Expect From My Wealth Manager?

Home

About

Testimonials

Articles

Contact

What Should I Expect From My Wealth Manager?

What to expect from your first meeting?
Your introductory meeting with your wealth manager can include estimating your net worth and discussing future investment, tax planning, and estate goals with you. A competent wealth manager will get an idea of your risk tolerance by giving you various scenarios or perhaps a written questionaire.

Between your first and second meeting, your wealth manager will likely write an investment policy statement for your particular situation.

What to expect from subsequent meetings?
Your second meeting can include a review of your investment policy statement and addressing any questions you may have.

If you will be using tax planning, estate planning or philanthropic planning services, and you don't already have an estate lawyer and tax accountant, you can meet with these professionals at the second meeting. Wealth management firms that don't have these professionals in house can usually recommend external professionals that they have worked with in the past. These professionals will work with your wealth manager to make sure the plan integrates these elements.

Where will my investments in mutual funds, stocks and bonds, etc be held?
That depends on your preferences and the size of the firm. If the wealth management firm is part of a bank or a larger financial institution, the investments can be held in the same firm. If the wealth management firm is not part of a bank or a larger financial institution, the investments can be held at an external firm that specializes in asset custody. If you want more safety and diversification and are uncomfortable holding all your assets in one firm, you can request that the assets be held across multiple firms or even in multiple firms in multiple countries; many HNWIs request this last option.

How much will I be charged?
There are three ways your wealth manager can charge you. 1) As a percentage of the liquid assets managed, usually 1%; 2) On an hourly fee basis; 3) On a commission basis for investment and insurance products sold. Wealth managers can use one or a combination of two or three methods.

How often do I meet my wealth manager?
Most clients see their wealth manager twice a year. In between face to face meetings, many wealth managers connect to their clients through monthly emails containing information about your investment holdings, market commentary, etc.

What expertise should I expect of my wealth manager?
Usually a wealth manager's expertise is concentrated in investment advising, asset allocation, investment management, retirement planning, risk management, insurance, and private banking. asset allocation, risk management, and insurance. Usually tax planning and estate planning are performed by different individuals or outsourced.