You may be struggling to handle your portfolio on your own, in which case, it could be the right time to call on the services of a professional. Wealth management firms work together with their clients to establish financial goals and then create a plan in order to achieve them.
This plan typically entails the selection of dependable investments that have the potential to grow over time.
If you, too, are in a position to build upon your current wealth, here are five tips that will aid you in choosing the best wealth management firm for your needs.
- Get a Sense of The Firm’s Ideal Client
Wealth management firms, in general, cater to the type of investor that has a large asset base. Nevertheless, not all wealth management firms take this approach.
There are some that work only with clients that have a relatively small asset base such as between £25,000 and £200,000. There are others that exclusively target the millionaire.
So, to find out, the obvious way is to make a point of asking.
- Make Comparisons of What They’re Selling
You may, if you’re on the hunt for a wealth management firm, already have a fairly clear concept as to what it is you need their help with. If not, you should consider the types of services and products that are being offered by different firms to become more familiar with the landscape.
Does the firm provide investment advice alone or do they provide investment advice and help with other matters like estate planning and taxes?
Some wealth management firms specialise in making investments of certain types, while others are broader in scope.
It’s also wise policy to pay attention to the overall investment strategy the firm uses. You want to know that their strategy aligns closely with your goals.
If you are at the point of narrowing down your search for best wealth management firms and most of them offer very similar cookie-cutter portfolio choices, it’s probably wise to look elsewhere.
- Review The Pricing
Wealth management firms can help you to boost your wealth but they are not in the business of working for free.
Wealth management firms are paid in one of two basic ways: Charging a commission on each product they sell or by assigning a fee to specific services.
If you wish to avoid the sales pitch on every occasion you meet your wealth management firm representative, an advisor that works on a fee basis is a good choice.
When considering cost, the most important thing is the value you get in return for what you’re paying. If a large percentage of what you earn goes on fees, you’ll want to know for sure that the performance of your portfolio fully justifies the price.
- Service Availability
It’s highly unlikely you’ll want to talk with your wealth management firm’s advisor daily, but you may want to get in touch with them fairly frequently. Finding out what the schedule is for client meetings and the preferred method for communication is important for obvious reasons.
For example, if you are concerned about a particular investment that’s been made on your behalf or you have questions about fees, those are things you don’t want to be left in the dark about.
- Assess The Firm’s Track Record
Larger wealth management firms typically have millions and perhaps even billions of pounds worth of assets that they manage. This alone, though, does not indicate how capable they are.
Once you’ve narrowed your list of best wealth management firms down to only a handful, look into each firm’s history.
For example, has the wealth management firm been given any awards? Are there many, or any, positive reviews on the Better Business Bureau website or on any other consumer website?
Learning about the background of a variety of firms can take time and effort, but it’s worth it nevertheless.
Working together with a wealth management firm is about establishing a relationship with a firm – or a person – that really cares about your money and has a fiduciary duty incumbent upon them to perform at their best.
Choosing the wrong firm could be disastrous – disastrous for you and possibly also disastrous for your heirs. By using the tips provided above as a framework, it should be that much easier to find a wealth management firm that maintains your best interests at heart.