Achieving and sustaining financial security is a goal most people have. Everyone wants the peace of mind that their hard-earned money is being managed responsibly. However, on their own, it is easier said than done. This is where wealth managers come in.
Wealth managers play a vital role in providing guidance when you choose sound financial decisions that will help you achieve your short- and long-term goals.
However, there’s the catch—hiring a quality wealth manager is not a walk in the park. It’s not always simple to build a trusting relationship with a total stranger who will be giving you advice on your finances and managing your money.
Here are the top characteristics to consider when looking for a good wealth manager:
1. Integrity
In wealth management, integrity is a dedication to always acting in the client’s best interests.
Wealth managers frequently receive pay depending on the amount of capital they bring to a company or their “assets under management.” That implies it is in their best interests to sell their services to a broad spectrum of clientele, regardless of whether or not they can provide good service to those people. It implies that you must be extremely picky about who you let manage your finances.
A big part of evaluating integrity happens during your initial discussions. Does the wealth manager, for instance, gather specific information about you and your financial goals? If yes, then there is a strong probability you have found a wealth manager with integrity.
2. Knowledgeable
Money is an integral part of everyone’s lives; therefore, you want to ensure that the person handling your money is competent. You know when a potential wealth manager is knowledgeable by asking the following questions:
- What institution did you attend for education?
- What licenses, designations, and certifications do you have?
- What is your area of expertise (e.g., high net worth, slow and steady savings, etc.)?
- What continuing education courses do you concentrate on?
This is no different from why you will not employ an electrician to do your taxes. You should look for an expert who has given them the necessary training and market understanding. It’s crucial to work with a wealth manager whose approach to investing, and foundation for guidance matches your values and helps you feel at ease.
3. Possess investing skills
Anyone can research the worth of various assets and form an opinion on what is best, given a certain financial situation. But until you have been there, you can’t know all the specifics. That is why you need an experienced wealth manager.
The truth is that when things are going well, making money in the market is not difficult. But what occurs when conditions change? Experience is then of utmost importance in the field of wealth management. A certified wealth manager will know when to make investments and when to protect those investments.
4. Attentive
Along with financial knowledge, you want your wealth manager to be responsive to your needs and will assist you in meeting your financial goals. Although exceptional wealth managers will have other clients, you’ll want to hire someone who makes you feel like they care about you and the critical decisions you’ll need to make about your future.
Asking wealth managers about their typical client relationships is not something to be afraid of. To ensure that both parties are content with the relationship, go through the expectations on both fronts.
5. Values communication
Communication is essential in any relationship. Keeping lines of contact open is crucial, even though some clients may not feel the need to meet with their wealth advisor as frequently as others.
Meeting once a year may not be enough because a lot can already happen in a year (marriage, baby, legislative changes, economic crises, etc.) that may affect your finances or alter your goals. Whether over the phone, via video conference, or in person, you should decide whether more frequent check-ins are possible or necessary.
It is also vital that you and your wealth manager share the same goals. A good wealth manager should provide you with objective, unbiased facts to assist in your decision-making and put your mind at ease.
Wrapping Up
Successful financial advisors understand how to handle their client’s money while making them feel secure and cared for financially. Financial advisors can benefit from a decent wage and reasonably stable employment, even though admission into the field can be difficult.
The tricky part of hiring an excellent wealth manager is weighing these factors and determining what is most important to you. Each person has their wish list of qualities they look for in a wealth manager, so take your time, research, and interview a few people before picking the right one for you.
