Expert Warns of Wealth Management Pitfalls

Expert Warns of Wealth Management Pitfalls

The author of our linked article recently attended the Financial Engineering Institute’s Fall Family Wealth Conference in Florida. FEI and its partners work to help financial service professionals find high-net-worth clients and retain them through superior performance. It his piece, the author provides some of the key takeaways from the conference.

In particular, he focuses on the presentation of FEI’s CEO Nick Gregory, who has worked in financial services for an impressive 40 years. His experience allowed him to build a 10-point model for providing premium service to rich clients and maintain long-term, multi-generational relationships. He’s also identified a few pitfalls that undermine many advisors and their firms.

The problem, Gregory says, is that many firms are merely managing their HNW clients’ liquid assets, and perhaps including a few premium services. They are not truly managing wealth in the sense of providing a comprehensive strategic plan, he underlined.

This approach puts them at odds with their clients, he said. In surveys conducted among HNW families, asset management is deemed important, rated number five on the list. However, comprehensive planning and management of the family’s wealth came in firmly at number one. Wealth management firms are effectively running their family practices in reverse of clients demands, he said.

Mr. Gregory pointed to a well-known fact: when the head of a HNW family dies, their financial advisor usually loses their business – this holds true in as many as 85% of cases. Gregory believes this is because it’s so simple to quickly shift liquid assets to another firm that offers better terms or services. If a firm was offering true wealth management solutions, the family would be less likely to make a move.

For more information, please read:
The Stunning Power and Legal Risks of “Wealth Management” | Nasdaq


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