Design by Lily Therens; elements from Shutterstock

Design by Lily Therens; elements from Shutterstock

More Money, More Problems

When to engage a wealth manager

Back Web Only Mar 20, 2015 By Barry Brundage

Two major trends may soon push financial planning to the top of many Sacramento families’ priority lists.

One: an estimated $60 trillion of U.S. wealth will transfer over the next 55 years, according to a new study by the Center on Wealth and Philanthropy at Boston College.  And two: The greater Sacramento region is positioned to grow at a rate that can potentially outpace the state of California, with expansion in private sector employment in industries including high technology, healthcare and clean energy technology.

These two themes — the dramatic transfer of accumulated wealth from the baby boomer generation and regional employment gains — could serve as a catalyst for individuals  to preserve and grow their wealth, seek new financial opportunities and engage with wealth management experts.

But can a  professional wealth manager make a difference?.  As we continue to live in a time-starved society, many find working in partnership with a team of professionals essential to preserving and growing their assets, preparing future generations for stewardship of family wealth and managing philanthropic goals.

Beginning a relationship with a wealth manager is a process that requires transparency and time. The early stages elicit many questions between wealth management professionals and clients who want to better understand each other, the process and the potential benefit of professional financial advice.

Here are some of the most common questions (and answers) about wealth management:

When do you need full-on wealth management services versus occasional financial advice?

A good rule of thumb would be $1 million in investable assets and a net worth of about $5 million. This generally includes houses, businesses and any other assets or investments. For some, this wealth may come from  an inheritance or recent transaction, such as the sale of a business. Many clients at this asset level require a full range of services, from portfolio management, retirement and estate planning  to the transition of wealth to children and other beneficiaries.

Has the industry evolved and what are current customer expectations?

The business of wealth management is a dynamic and changing field, increasingly in demand. As clients’ needs evolve, so does the industry. The wealth management industry has expanded in terms of services offered, availability, transparency, education and the technology used. Many advisors see themselves as a trusted friend, a confidant who put the client’s needs above all else. Clients expect authentic engagement, in-depth knowledge of the economy on macro and micro levels, and a team of specialized experts who can manage various facets of their wealth — from philanthropy to wealth transfer. Because of the change in approach to the advisor-client relationship over the last decade, some clients may find their connection with the individuals managing their accounts is greater than the relationship with a specific institution or firm.

What are the biggest challenges in the field?

The recent recession may have created doubts for certain individuals regarding the service provided by some financial services teams and institutions. Past economic downturns can pose a challenge to advisor/client relationships. As a client, it is important you feel like an individual. Your advisor should take the time to learn and understand your goals, what worries you and your family dynamic. This is the only way to design effective strategies unique to your objectives. With the support of a wealth management professional, a customized wealth plan can address your current and future need, and serve as a roadmap toward the life the you have envisioned.  

Check back next week for Jeff Wilser’s March Feature, “Mental Wealth,” on the therapy behind financial management. Sign up for our newsletter and we’ll email you once it goes online. 

U.S. Bank and its representatives do not provide tax or legal advice. Each individual’s tax and financial situation is unique. Individuals should consult their tax and/or legal advisor for advice and information concerning their particular situation.

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