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What is Wealth Management

Wealth Management is the systematic process of building wealth and protecting / preserving it. It involves expertise in: financial planning, investment management, insurance, tax management, and estate planning. The ideal candidate organization for wealth management service is as interested in preserving hard-earned wealth as with growing it.

Because there have been less than favorable press associated with stock brokers, many wealth management companies are merely a re-labeled stock brokerage. Typically stock brokers have a reduced scope and talent set than those providing wealth management services.

Since many of the so-called certifications in this industry don’t amount to much, investors are left at a disadvantage when selecting advisors. What is most important is an understanding of these points:

• Will the person you are considering hiring sign a statement indicating they have no conflicts of interest and that they will always act in your best interest / as a Fiduciary?  If the answer is anything but yes, please move on.
• 2007 – 2009 saw the worst stock market crash since the 1930s. How did the person/company manage to preserve client wealth during this period? Did they force their clients to hold on to their existing investments and suffer massive volatility, or did they take action to mitigate losses and preserve capital? Ask for a report showing overall client investment returns (You can view our client investment returns on the Home Page).
• What is the total cost in investing (not just the fee paid to the advisor)?
• Ask for the Form ADV. This is a government-designed form that captures a recent snapshot of a federal securities regulator database with most of the information you will want to know about the advisor:
  • any fines, complaints, lawsuits ?
  • industry experience, education
  • fee structure
  • any conflicts of interest
  • services offered.
• Please note that the Form ADV is only available when you are seeking to work with an Investment Advisor, not a stock broker. Stock Brokers do not have to provide the information contained in a Form ADV. Lacking this information does not help you make an informed decision.

There is no such thing as a Financial Advisor in the eyes of the law or securities regulator. Much of the time, when someone refers to themselves as a Financial Advisor, they are stock brokers. Stock brokers do not have to act as fiduciaries (in your best interest at all times). Investment Advisors do.