Mistakes Wealth Management Advisors Make When Moving

Moving is stressful, but what is more stressful is when the move impacts areas that it should not. This can include a relocation of your home or office, whether it is across town, across the world, or simply to a new company.

This is why when wealth managers meet with a finance industry recruiter they are advised to make sure the move is as seamless as possible, meaning that clients understand what is happening ahead of time, are kept abreast with a quick note during the process, and that they do not get any negative surprises in the process.

This applies to the financial advisor who moves from one company to another, as well as to a wealth manager who decides to convert his focus to caring for family offices.

Mistake #1: Announcing a Move Before it is Final

One advisor who is a client of ours was all set to move from his current firm – a large bank – into a leadership role at a private equity firm. He succeeded in all of the interviews, made a great impression, and had just accepted his employment package. Emotionally, he was gone.

However, the firm was going to have him start at the beginning of the year – 2 months away. When December came he gave appropriate notice to his supervisor and then began to speak freely about the move to clients. It was that week that that firm fell under investigation for securities fraud and later closed down.

It made him look very foolish, and clients couldn’t help but question his judgment.

Mistake #2: Not Announcing the Move When it is Final

Another person we know was able to make a very successful move. However, he had failed to communicate the change to his clients. When they received statements the only thing they could conclude was that something was wrong. After all, they always banked with ABC, not XYZ.

It all ended up being okay, but it was a lesson in customer service that wouldn’t be forgotten.

Mistake #3: Losing Sight of Customer Service

Moving takes a lot of time and energy, so it is understandable that one may find him or herself in a whirlwind, but for clients who feel as though they have lost access to you, they may wonder why they are with you, especially if they get bogged down in the day-to-day fluctuations of the market.

A simple way to resolve this before it occurs is to make sure that clients receive your new contact information. This should be done by email and through the mail. For those who have 100 clients or less, it would be a great idea to reach out by phone to each of them over the course of a week. The calls will take just a minute or two for the most part, but it’s also an incredible opportunity to get to know them better to solidify the relationship.

Wealth managers can do just about anything once they have earned their stripes. However, the skills involved with managing wealth also include managing relationships, which is what everything is built upon.

Loans and Debt Management

If you have loans that you cannot pay at present you may be looking for a debt solution. It is not uncommon to accumulate a number of loans over a period of time, never thinking that it may not be possible at some time to service the debt that is being taken on.

It is sometimes forgotten that past commitments go on for quite some time and Loans as well as credit cards and store cards can build up, so that after even a short period of time, these credit commitments can add up to a sum that cannot be paid on proper terms.

We get calls to our free help line from people with loans who now cannot service their monthly commitments. We are always able to offer debt solutions to our callers, which may range from debt management to bankruptcy.

If the debts that you have are £15,000 or less and there is the ability to make payments of £100 or more from disposable income then it is very likely that one solution offered will be debt management.

A typical loan repayment may be several hundred pounds per month. If two or more loans have been accumulated, then a significant loan schedule will be due. These sums can be cut by three quarters with a good debt management plan.

The debt management company will often be able to get the loan company to stop interest accumulating, and charges from being imposed. The Loan company may accept lower payments in lieu of the full payments, which will make the loans easier to service.

The debt management company will charge the first months payment as a management charge, and then about 15% of each subsequent month as a management fee.

In return for this the debt management advisors will collect in and distribute your money each month to your creditors, they will handle all correspondence, and make sure that matters run smoothly.

It will be possible to run the plan this way for as little or as long as required.

Wealth Management – Why to Contact an Advisor

Wealth management services aren’t only for the “wealthy” as defined with those as millions of dollars of income…in fact, most people can benefit from the services of a wealth management advisor to help with everything from estate planning to life insurance, wealth transfer to retirement investing. Perhaps you’ve been moderately successful at investing on your own-but now you don’t have the time. Perhaps you’ve been unsuccessful at investing on your own-don’t beat yourself up. “Do what you’re good at” is advice given to many-and successful wealth management advisors are good at helping clients with a portfolio!

Of course, finances and wealth management are sensitive and personal subjects, so you’ll want to do careful research prior to finding an advisor. You’ll want to give careful thought to what you are expecting an advisor to do-offer you help on a transactional basis on certain products? Help you plan a long-term investing strategy on a fee-for-services basis?

People have different reasons for contacting advisors. They include:

– Planning for education-This is even more important as tuitions rise and the job market becomes more selective, making a college degree even more important. Here, an advisor may recommend plans such as state-by-state 529 plans, or other investments depending upon your time horizon. If you are expecting to be hit with college expenses for a child and have less than 10 years to invest-with nothing saved-talking to a wealth management advisor now is a good idea!
– Minimize taxes-This is especially true for those reaching higher brackets as their income increases. Here, an advisor might suggest a variety of tax-deferred investments that will give you income upon retirement (when you might be in a lower bracket).
– Portfolio performance-Some judge this by getting the highest returns, while others view it as more important to protect a portfolio from loss. Don’t believe anyone who can guarantee performance-no one can. Instead, ask about investing philosophy and examples of how they’ve managed client portfolios in good and bad times, to gauge how your own portfolio might be managed
– Help define goals-This is especially helpful for couples who may have different attitudes about money-working with a professional (who is objective and outside the relationship) can be quite helpful in creating a long-term plan that both investors can believe in.

Regardless of your reasons, many investors find that working with an advisor has positive long-term effects on their finances, investments, and long-term wealth management strategies.