Wealth manager: how to choose it? 3 mistakes not to make
The role of the wealth management advisor is to help financially well-off clients optimize their savings, both in terms of wealth and tax, keeping in mind the main objective you have set for yourself.
Depending on your investor profile, your liquidity, your income, your real estate, the wealth manager helps you prepare for your retirement, prepare your estate or obtain passive income.
But it’s a fact: not all wealth managers are equal, and the offer in this area is wide. So how to choose it well? And what mistakes not to make? We go around the question.
How to choose the right wealth manager?
Wealth managers are real Swiss Army knives, knowing the investments and the applicable legislation at their fingertips. However, not everyone has the same way of working and the same freedom of action.
Different Wealth Management Advisor Profiles
Thus, we distinguish between asset managers:
- Working in a bank: they are employees and dependent on the bank in which they work, if they can guide you usefully, the offer of products to which they have access is limited to the banking investments offered in their establishment,
- Working as independents or liberals: autonomous par excellence, they have privileged partnerships with many banks, insurance companies, they are objective about your situation and their independence allows them to provide you with the best advice, they are generally remunerated at counseling time,
- Working within a family office: they are there to advise large fortunes both personally and professionally, they are true allies having only a few clients in their portfolio and knowing everything (or almost) about you, they are usually paid on commission.
Different customer profiles to advise
Nothing prevents you from mixing relationships. Customers with assets of less than 1 million euros, for example, will be able to choose their bank’s wealth management advisor, and see an independent advisor at the same time.
Those who have assets between 1 and 10 million euros will have every interest in choosing exclusively an independent manager, and in approaching several in order to find the rare pearl, the one with whom they get along and who brings real added value. to their wealth.
Finally, the wealthiest clients, with assets of more than 10 million euros, will be able to turn to family offices. Certainly, their services are more expensive, but the relationship is entirely personalized, even exclusive for the greatest fortunes.
What mistakes to avoid by delegating the management of your assets?
The higher your wealth, the closer the relationship you will maintain with your advisor. In any case, you must pursue the same objective as your adviser: enrich yourself or prepare a project. Avoid common mistakes by choosing the wealth manager who listens to you and matches your values.
Mistake #1: The single-product wealth manager
Although rare, some wealth managers work on a specific product, for example SCPIs, and want at all costs to make you adhere to this investment. If you are not sure yourself that you want to make this restrictive choice, prefer to see an independent and versatile advisor.
In terms of savings, investment, tax optimization, the key word must remain portfolio diversification. Never settle for just one asset class (e.g. real estate). A balanced portfolio is made up of security savings, bond and equity market investments, real estate investments and a few more risky niches in a small proportion.
Mistake n°2: The unavailable wealth manager
By choosing an independent wealth management advisor, you are dealing with a business leader who has every interest in satisfying his clientele so that they are loyal to him and recommend him to those close to him.
And one of the most important criteria of any business relationship is proximity and availability. Thus, an overwhelmed wealth manager, who does not answer your calls or emails within a reasonable time, is not an advisor with whom building a lasting relationship is possible.
So, choose an advisor who checks in on you regularly and has the time to take stock with you whenever your situation changes. Prefer an advisor who keeps you informed of the performance of your investments and is transparent in all circumstances.
Mistake n°3: The wealth manager working in a large structure
If this last criterion is not prohibitive, however, be careful about the different parties to whom you entrust your money. If a wealth manager works alone when he is a beginner, is competent, multi-card and available, you can decide to trust him.
On the other hand, a wealth manager with several years of experience behind him often ends up setting up his own structure. He then works in concert with other asset managers, each with their favorite fields. This allows you to compare points of view and benefit from several allies within the same structure. In addition, a secretariat is often present and very useful to be contacted quickly.
On the other hand, firms employing more than fifty employees may seem too big and lack personalization. Turnover is more frequent and many of the contacts are salespeople and not seasoned wealth managers.