Choosing the right wealth manager
Whilst the remit for the manager can be short or long term it’s becoming increasingly important to make sure that in addition to the manager’s investment plan being right for you, you have also chosen the right manager. Here are a few things that should be considered.
Manager experience
Does the firm have the necessary expertise to deal with the issues that your specific situation requires? Some wealth managers may claim that they have dealt with hundreds of clients “just like you” but the reality is that no two clients are the same. Ask to see evidence of what they have managed to achieve for others who have had similar requirements to yours. Also, whilst it’s easy for a manager to demonstrate good returns when the markets are performing well, only a good manager will be able to maintain your investment capital or minimise losses when markets take a turn for the worse. There have been plenty of opportunities for them to do this in recent years so proof should be plentiful.Succession planning
Will the wealth manager still be around in years to come and see your financial plan through to completion? For example, assume you have a 20 year plan and you intend to retire in 15 years, the last thing you need is for the company which is advising you to do the same. The wealth management company should be of a sufficient size to factor in succession planning as a result of the firm’s advisers leaving the business or retiring.Online access
In the virtual/online world of today, we expect to be able to view what is going on 24/7. As such, does the manager have sufficient IT infrastructure to allow you to keep track of what they are doing and how your investments are performing without having to visit their offices?Regulation
Any wealth manager you choose should be authorised by the local regulator and the products they recommend should be suitable for your level of investment expertise and the level of risk you have agreed with them. For example, if you are completely new to all of this and cannot afford to lose all of your investment, you should be concerned if a manager recommends strategies that are suitable for experienced or professional investors and are unsuitable for a retail investor. Ask plenty of tough, but fair questions before entering into an advisory agreement to ensure that you have the best chance at financial success. Remember that you are the one appointing the adviser and giving them your money to manage, not the other way round.- Please note that the information provided above is the opinion of RL360 and should not be taken as advice or recommendation. Independent advice or confirmation should be obtained before acting upon, or refraining from acting upon, the information given.
Whilst the remit for the manager can be short or long term it’s becoming increasingly important to make sure that in addition to the manager’s investment plan being right for you, you have also chosen the right manager. Here are a few things that should be considered.
Manager experience
Does the firm have the necessary expertise to deal with the issues that your specific situation requires? Some wealth managers may claim that they have dealt with hundreds of clients “just like you” but the reality is that no two clients are the same. Ask to see evidence of what they have managed to achieve for others who have had similar requirements to yours. Also, whilst it’s easy for a manager to demonstrate good returns when the markets are performing well, only a good manager will be able to maintain your investment capital or minimise losses when markets take a turn for the worse. There have been plenty of opportunities for them to do this in recent years so proof should be plentiful.Succession planning
Will the wealth manager still be around in years to come and see your financial plan through to completion? For example, assume you have a 20 year plan and you intend to retire in 15 years, the last thing you need is for the company which is advising you to do the same. The wealth management company should be of a sufficient size to factor in succession planning as a result of the firm’s advisers leaving the business or retiring.Online access
In the virtual/online world of today, we expect to be able to view what is going on 24/7. As such, does the manager have sufficient IT infrastructure to allow you to keep track of what they are doing and how your investments are performing without having to visit their offices?Regulation
Any wealth manager you choose should be authorised by the local regulator and the products they recommend should be suitable for your level of investment expertise and the level of risk you have agreed with them. For example, if you are completely new to all of this and cannot afford to lose all of your investment, you should be concerned if a manager recommends strategies that are suitable for experienced or professional investors and are unsuitable for a retail investor. Ask plenty of tough, but fair questions before entering into an advisory agreement to ensure that you have the best chance at financial success. Remember that you are the one appointing the adviser and giving them your money to manage, not the other way round.- Please note that the information provided above is the opinion of RL360 and should not be taken as advice or recommendation. Independent advice or confirmation should be obtained before acting upon, or refraining from acting upon, the information given.