What is a wealth management firm, and what does a wealth manager do? A wealth management firm can offer many benefits to improve your wealth and investments over time, but not all are created equally.
Demand continues to grow for wealth managers and financial planners, with searches growing by 70%. A wealth manager works with large amounts of wealth and offers a variety of financial services. However, it is essential to pick one that cares about your future and protects your investments.
Read on to learn how to pick the best wealth management firm.
1. Experience and Credentials
What is the wealth management firm’s track record? You want to pick a wealth manager with the proper credentials and the experience to match.
Check what their certifications are, and double-check their credentials online if you need them. Also, take time to learn about their past cases. Have they received any recognition or rewards for their work?
The wealth management firm should have the expertise to deal with complex cases along with simple ones. Ideally, their website will offer information about wealth and investment to show their knowledge. Also, ask about their experience dealing with specific services you need.
Take time to speak to the wealth manager too. A good wealth manager should be knowledgeable about industry trends to invest your money in the best ways. It can also be telling as to whether you click with them on a personal level or not.
2. The Client Base
Wealth management firms typically have clients with solid portfolios of assets. However, investors and portfolio requirements still vary. You want to pick a wealth manager with the skillset to work with your wealth, so check their client base.
Some wealth management firms will focus on a range of wealth that they work with. Others might have a minimum requirement, such as $50,000, while others only work with six figures or more. Some may specify if they only work with retail investors or institutional investors.
The best wealth management firm should advise what wealth managers would work best with your case. However, you can also ask about all their wealth managers to find the most suitable for you.
3. Breadth of Services
You want to know what the wealth management firm offers. Some firms focus on advising and passive investing. So you will also have a say in critical financial decisions, and they will put your wealth in a range of asset classes.
Other firms take an active approach and will fully manage your investments on your behalf. What do you prefer?
A way to find out about the breadth of services is to know their business model. It can be a telling way to learn how they will manage your wealth. For example, a publicly held company will have different motivations to a private one.
The best wealth management firm will not have conflicts of interest when it comes to protecting your wealth. Their focus will also be primarily on wealth management instead of other financial services, such as insurance. They should also be familiar with different investment technologies to provide the best service for you.
4. Client Model and Availability
How often will you need to speak to your wealth manager? You want your wealth management firm to be there when you need them. A telling sign if this will happen is to ask about their client service model.
Also, ask how many clients each wealth manager has at the firm, as the more clients they have, the less available they could be at certain times. Firms may have quotas on wealth managers to sustain good customer service. You can also check client retention rates for wealth managers.
You can ask how you will liaise with the wealth manager too. Sometimes in-person meetings are not possible. Wealth managers are citing digital as a priority to continue to manage client assets effectively.
You should be on the same page with your wealth manager regarding communication and goals. You want to ensure the wealth manager cares about getting to know you and your family. They will then be in a position to understand your financial aspirations and care about the legacy of your investments.
5. Wealth Manager Reviews
Sometimes a wealth management firm may look great on paper, but reviews suggest otherwise. Read independent reviews about the wealth management firm.
There are different ways to find independent reviews, such as checking on search engines. You can also use the Better Business Bureau to find reviews and complaints about businesses, too.
You can also ask the wealth management firm for client testimonials. You can see if the clients had similar needs and whether they are still using the wealth management firm.
6. Pricing
There are two main ways wealth managers get paid. A wealth manager will either charge commissions on products they sell or have fees for services. If they are at a large wealth management firm, they may be paid a salary.
Always ask about their fees upfront and what the fee structure involves. You need to know if you will have to pay extra for certain services. If they earn by commission, prepare to hear sales pitches when you speak to your wealth manager.
You want to ensure you get value for the pricing without conflict of interest. Find a wealth manager who prioritizes the client and is affordable for you. You want your portfolio to be worth the expense and give you the returns on investments you deserve.
The Best Wealth Management Firm
If you are asking yourself, “Do I need a wealth management firm?” It is time to investigate what services firms offer to help you. Take your time to research different options, as the services firms offer may differ slightly.
The best wealth management firm will have the expertise to handle your case and have customer reviews to support their promises. Their pricing, services, and availability will be transparent. And it will be evident that the wealth manager cares about your investments.
At RVW Wealth, we put the needs of the investor first. Contact us today to learn how we can support your wealth and investments.