What Wealthy Families Get Wrong About Financial Advisors

Written By: Kevin Reardon, CFP®

We have had hundreds of conversations with wealthy families over the years, some who have hired us and some who have not. We’ve learned interesting things about the perception people have about financial advisors and what we do (and don’t do). Let’s take a look at the common themes we come across.

“I’m Not Wealthy Enough to Have a Financial Advisor”

People frequently say they don’t have enough assets to work with a financial advisor. Their definition of clients who work with an advisor isn’t typically defined by a specific dollar amount, but rather as someone who has a net worth more than they do. Though most financial advisors set a minimum for clients, there is no set dollar amount for someone needing an advisor for their finances. Most wealth management firms provide a grace period of a year or two for you to meet their minimum based on liquidity events, so don’t wait to reach out if your assets will be over the threshold in the near future.

Financial Advisors as Investment Managers

Many people believe financial advisors are focused solely on managing client assets and not on the comprehensive aspects of wealth management. Their initial questions are frequently geared towards investment methodology and what stocks we own. Although we will have in-depth discussions about your investments, a financial advisor provides more value-added services than investment managers or brokers. There is a focus on creating a long-term, holistic plan to reach your financial goals.

Understanding Value Proposition

A good financial advisor will help clients with an array of issues above and beyond investments, including retirement planning, tax planning, charitable giving, insurance, Social Security and Medicare planning, college funding, estate planning and more. In addition, clients are amazed to learn how these various components impact each other and need to be closely orchestrated to best maximize their plan. People who thought they just wanted some advice on stocks and bonds leave our office surprised at the complexity of their own situation and the multiple ways we can help them.

Implementation of Recommendations

If a client is aware of what a financial advisor does, many people underestimate the difficulty and importance of properly implementing financial recommendations. Whether it’s facilitating a Roth IRA conversion, claiming Social Security benefits, applying for the proper Medicare coverage, making a gift to a charity, or taking unrealized losses, it is the actual implementation of these recommendations that requires diligence and care. Having a skilled professional facilitating your plan is immensely important.

Contingency Planning

Although most clients have an estate plan and have prepared for their ultimate decline and demise, few people understand the importance of having a trusted professional in place in advance of those inevitabilities. If you were gone tomorrow, would your spouse or family members know the details of your assets, who the beneficiaries are, where your estate documents are located, how much life insurance you own, and then be able to efficiently administer your estate? A skilled financial advisor will take care of your family at the time of greatest need.

Shakespeare Financial Advisors as Partners

Clients who work with Shakespeare Wealth Management think we are like superheroes who live like celebrities (pardon the sarcasm 😊). We don’t work in an ivory tower or fly in private jets. In reality, we are hardworking professionals who get up early and come to work every day with the joy of knowing we are doing good for good people. Shakespeare financial advisors are accessible, real people you can easily communicate with and ask your questions to no matter how big or small. We value client relationships and get to know your family dynamics and life goals, taking on the role as your partner through all life’s complexities.

There are many misconceptions about financial advisors which hinder people from getting a higher level of advice and service they need and deserve. Give our office a call for a consultation to find out if Shakespeare Wealth Management is a good fit for you.