In the most recent blog post, we covered our definition of wealth management, which entails the following three components: WM (Wealth Management) = IC (Investment Consulting) + AP (Advanced Planning) + RM (Relationship Management) In this post, we’d like to cover the first component in the formula, which is investment consulting. For most people, and in fact for most financial advisors, investment consulting is the centerpiece of the relationship. It involves managing client assets, ideally with the goal of meeting or exceeding a planned return without taking on excess risks. Most client meetings and communications are centered around performance for the last quarter or perhaps for the last year. We clearly recognize that investment consulting is a key part of the client relationship. After all, for nearly all clients, portfolio performance over the long term is key to meeting their financial goals. Because of the importance of investment consulting, we’ve … Continue reading
If you’re seeking financial advice and fall into what the industry considers “high net worth” – typically over $1 million in investable assets – you’ll often be steered towards wealth management. However, in many instances when you ask what wealth management entails, you’ll be given vague definitions along the lines of “acting as a personal CFO” or “combining financial planning and investment management.” And while that may actually be what you get, unless you work in the industry it’s difficult to make the leap from those definitions to what is actually delivered. To help our clients understand exactly what we deliver in wealth management, we use the following formula: WM (Wealth Management) = IC (Investment Consulting) + AP (Advanced Planning ) + RM (Relationship Management) Each of the component parts of the formula can be broken down into subcomponents, and we’ll walk through what is entailed with each in future … Continue reading