At Proper Wealth Management, we pride ourselves on providing a personalized approach for each of our clients. We advise our clients as if we were advising our own family members. Additionally, as business owners, we value the importance of reputation and take great pride in the trust our clients bestow upon us. In fact, the most valuable asset we have is the trust of our clients. Having cut our teeth at major wire houses we also realize the conflicts of interests between the clients needs and the firms agenda, as a result we do not push products, earn commissions or have any hidden agendas. Our unique experience in advising entrepreneurs and senior executives has given us a broad exposure to the challenges facing our clients in an ever-evolving economic climate. With that in mind, we provide comprehensive guidance and clear solutions to complex financial matters with the advantage of a seasoned network of skilled professionals.
Why Founders & C-Level Executives Still Need a Wealth Manager
What are you good at, and what do you most enjoy doing? The reason I ask the question this way is because the answer may not always be the same. Also, at least one can change over time; perhaps as you age and your interests shift, or the focus of your life is altered by circumstance. The point I’m trying to make is, if you’re wealthy, managing your money is rarely either of these two things, which is why you should hire a wealth manager.
After all, skill sets and interests differ from person to person and it would be unreasonable to think otherwise. It could also be harmful; for example, it doesn’t matter how large a portfolio, a good wealth manager can create a great return while a bad manager can chip away at large fortunes.
It doesn’t have to be deliberate either. The great entrepreneur, someone who can build a viable business from seemingly nothing, simply may not be good at managing their wealth. It happens more than you might imagine.
Characteristics of a Good Wealth Manager
When it comes to money, some enjoy spending it, some enjoy making it, and some enjoy managing it – to protect it and to make it grow. Of course, each of these characteristics requires a different mindset and, while we’re not here to pass judgement on anyone, the management aspect requires extensive research and detail oriented effort. That simply may not be what you’re good at, or what you enjoy doing.
A professional wealth manager can help you make sense of confusing financial markets. Using a multi-disciplinary set of skills, wealth managers can help you differentiate between good investments and bad, allocate tax assets, help you plan for tax optimization, help you set and reach savings goals, help you plan and execute retirement planning, and make plans for passing assets to the next generation.
Beyond asset management, your wealth manager should also focus on liability management, planning as well as possible for unforeseen events and setting up property and casualty umbrellas to protect you and your family. Determining the amounts and types of insurance you need, and ensuring your assets are protected as they grow, is just as critical a function as long-term asset management.
Defining Our Terms & Roles
Before we move forward, we should probably clarify some terminology, as well as the roles played by different types of wealth managers.
One of the more popular tiles that are bandied about in the financial industry is “fiduciary”, yet few have a clear idea of the meaning of this word. While a fiduciary manages another party’s assets, U.S. law places a positive obligation, both legal and ethical, to put the other party’s interests first. For a financial advisor who is also a fiduciary, that means helping a client make decisions in his best interest, even if it means reduced compensation – or no compensation – for the advisor.
Now, while U. S. law defines the obligation of a fiduciary toward their beneficiary, and it is a serious obligation, indeed, such is not the case with brokers. Rather, stockbrokers need only provide suitable advice given the client’s resources. In other words, stockbrokers sell security products, while fiduciary financial advisors present themselves as full-service money management experts; influencing all areas of your financial life.
Click here to learn more about what it means to be a fiduciary.
Helping You Plan for Your Future
A good wealth manager is above all a planner, seeking answers to difficult questions and setting up both short- and long-term solutions. How will you care for your aging parents? Is your will current? Where do your biases lie; for risk aversion, for growth, for acquisition, etc.? The answers to these questions will be critical to the financial plan your wealth manager will help you develop.
A high-quality wealth management professional will also act as a screen. No matter what level of assets you possess, there are probably going to be friends, family, schools, and charities all pining for a slice of your money. With a wealth manager who places your peace of mind as a priority, all you have to do is give your instructions to your manager, then tell everyone, “Please consult with my wealth manager to see if this is possible.” No fuss. No muss. No guilt.
Finally, the people we work with are fantastic at building businesses and investing in their companies and themselves. They are the entrepreneurs and founders of successful businesses. They either don’t understand, or don’t want to invest the time to understand, the ins-and-outs of personal finance, investments, tax planning, retirement planning, estate planning, which are the things we so enjoy doing. We respect that, and it’s the reason we have a role to play in their lives.
