{"id":3731,"date":"2021-01-01T17:55:00","date_gmt":"2021-01-01T17:55:00","guid":{"rendered":"https:\/\/fusionwm.com\/?p=3731"},"modified":"2022-10-04T16:04:47","modified_gmt":"2022-10-04T16:04:47","slug":"a-key-ingredient-that-makes-good-wealth-managers-great","status":"publish","type":"post","link":"https:\/\/fusionwm.com\/a-key-ingredient-that-makes-good-wealth-managers-great\/","title":{"rendered":"A Key Ingredient That Makes Good Wealth Managers Great"},"content":{"rendered":"\n
\"A<\/figure>\n\n\n\n

Wealthy individuals and families by and large like to work with highly skilled advisors\u2014from wealth managers to accountants, lawyers and beyond.<\/p>\n\n\n\n

And why wouldn\u2019t they? If you have the financial ability to access advisors who are known for their technical capabilities in areas like tax mitigation, estate planning, investment management and so on, why wouldn\u2019t you pick those advisors over others who aren\u2019t as knowledgeable about those issues?<\/p>\n\n\n\n

But here\u2019s something that might surprise you. We\u2019ve learned, from decades of working with both the affluent and top financial advisors, that those advisors who may be the best technically are not necessarily the best advisors for you.<\/p>\n\n\n\n

Why? Often, these advisors are missing a key ingredient that can empower them to better serve investors with sizable wealth.<\/p>\n\n\n\n

<\/div>\n\n\n\n

The human element<\/h1>\n\n\n\n

Let\u2019s be clear: It makes good sense to find and work with professionals who are technically skilled\u2014ideally, technically brilliant.<\/p>\n\n\n\n

But we think you should be looking for more, too. In particular, we believe any wealth managers you work with should be exceptionally good at bringing what we call the human element<\/em><\/strong> into all they do on behalf of their clients.<\/p>\n\n\n\n

The human element as we define it is the personal and emotional components of wealth management. It includes understanding everyone and everything that is important to you, as well as everyone and everything that could be affected by your financial decisions, and using that understanding as the basis for making a broad range of decisions about your wealth.<\/p>\n\n\n\n

The following case study helps illustrate why it\u2019s important to work with a wealth manager who is extremely adept when it comes to the human element.<\/p>\n\n\n\n

A wealthy entrepreneur wanted his business succession plan stress tested to see whether it would deliver the results he wanted under various scenarios. A cohesive team of specialists were assembled to do the review and assessment. They concluded that, because of changes in the family dynamics since the time the estate plan was first signed, the most likely outcome after the business owner\u2019s death would be an all-out war among his four children. If it got bad enough, the conflict could be the death knell of the 200-plus-year-old family business.<\/p>\n\n\n\n

When it came to inheritances, the patriarch had decided on being even instead of fair. That meant each child was set to receive an equal share of the estate (including the company) even though only one of the four was involved in the company\u2014as its president. The patriarch described two of the children as \u201cdo nothing\u201d and \u201cworthless.\u201d<\/p>\n\n\n\n

Thinking through the situation with an intense focus on the human element resulted in a new estate plan along with well-structured and rigorous succession and asset protection plans. It\u2019s important to note that the existing wealth planning had done extremely well. However, the family\u2019s circumstances changed. Now, the child involved in the family business will inherit the company. The other children will get comparable amounts of wealth but in different forms.<\/p>\n\n\n\n

<\/div>\n\n\n\n

The value of the human element<\/h1>\n\n\n\n

This case study reveals how important it can be to stress test some aspect (or all aspects) of a wealth plan from time to time, especially with an eye toward interpersonal, human-element concerns.<\/p>\n\n\n\n

Stress testing is a systematic way to evaluate whether your plan is positioned to generate the results you expect it to. It can also be a good way to determine whether there are any meaningful opportunities out there that your current wealth plan isn\u2019t taking advantage of.<\/p>\n\n\n\n

Sometimes stress testing identifies technical mistakes that were made in the creation or implementation of a strategy. For example, some successful entrepreneurs will put different assets in separate entities. However, they might fail to insulate those entities from something adverse occurring in their personal lives. Another example is life insurance, which is often based on assumptions and projections. Sometimes, a stress test will show a technical failure\u2014the life insurance will not perform as expected.<\/p>\n\n\n\n

But stress testing also can reveal areas where strategies are correct, technically, but have become outdated because of changes in a person\u2019s situation and needs.<\/p>\n\n\n\n

That said, it\u2019s more common in our experience that stress testing reveals everything to be on track, technically and from a human element perspective. Finding no problems at all can potentially be good and comforting news\u2014especially if there was uncertainty going into the stress test.<\/p>\n\n\n\n

<\/div>\n\n\n\n

Sizing up an advisor<\/h1>\n\n\n\n

There are two approaches that potentially can help you make a determination whether a technically proficient wealth manager is likely to deliver results that satisfy you.<\/p>\n\n\n\n

  1. Determine whether the wealth manager is focused more on products\u2014or on you.<\/strong> Financial solutions are simply tools\u2014and whether or not any particular tool may be right for you depends greatly on your goals, your needs, your preferences, your concerns and your challenges. Assess whether a wealth manager seems to be paying more attention to the mechanics of a solution\u2014the ins and outs of a particular type of trust, for example\u2014or whether that wealth manager spends more time trying to get to know you as a person.<\/li><\/ol>\n\n\n\n

    If the focus is on you, it\u2019s a sign that the wealth manager is also focused on outcomes\u2014getting the results that you seek for your particular family, business and so on. These wealth managers also tend to be adept at explaining how their actions (or proposed actions) are aimed at delivering the specific results you seek.<\/p>\n\n\n\n

    1. Get a stress test done.<\/strong> You should consider stress testing if you\u2019re not extremely confident that one or more of your wealth management solutions will get you the outcomes you want\u2014due to a technical concern, a change in your personal situation or both. You might also consider stress testing if you\u2019re concerned about a proposed solution or strategy\u2019s effectiveness relative to your goals. A stress test could help you decide whether you should go with that solution\u2014or steer clear of it and the wealth manager who proposed it.<\/li><\/ol>\n\n\n\n
      <\/div>\n\n\n\n

      Conclusion<\/h1>\n\n\n\n

      It\u2019s a good idea to find and work with technically adept financial professionals who are well versed in the many strategies and solutions available to you. Expertise is valuable and can potentially add value to your financial life.<\/p>\n\n\n\n


      That said, you can still end up being disappointed with your results if all you do is seek out such experts and stop there. We believe a much better idea is to work with technically skilled professionals who also focus much of their time and attention on how potential solutions may (or may not) help the needs of specific clients.<\/p>\n\n\n\n

      This requires the human element\u2014a willingness and ability to get to know you on a deep level. Wealth managers who combine the human element with great technical skill are likely to be better positioned to generate outcomes that their clients most want.<\/p>\n\n\n\n

      \n\n\n\n
      <\/div>\n\n\n\n

      This report was prepared by, and is reprinted with permission from, VFO Inner Circle.  AES Nation, LLC is the creator and publisher of VFO Inner Circle reports.<\/p>\n\n\n\n

      Disclosure: The opinions expressed in this commentary are those of the author and may not necessarily reflect those held by Kestra IS or Kestra AS. The material is for informational purposes only. It represents an assessment of the market environment at a specific point in time and is not intended to be a forecast of future events, or a guarantee of future results. It is not guaranteed by Kestra IS or Kestra AS for accuracy, does not purport to be complete and is not intended to be used as a primary basis for investment decisions. It should also not be construed as advice meeting the particular investment needs of any investor. Neither the information presented nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. Securities offered through Kestra Investment Services, LLC (Kestra IS), member FINRA\/SIPC. Investment advisory services offered through Kestra Advisory Services, LLC (Kestra AS), an affiliate of Kestra IS.<\/p>\n\n\n\n

      Fusion Wealth Management is not affiliated with Kestra IS or Kestra AS. https:\/\/www.kestrafinancial.com\/disclosures<\/a><\/p>\n\n\n\n

      VFO Inner Circle Special Report
      By Russ Alan Prince and John J. Bowen Jr.
      \u00a9 Copyright 2021 by AES Nation, LLC. All rights reserved.<\/p>\n\n\n\n

      No part of this publication may be reproduced or retransmitted in any form or by any means, includ- ing, but not limited to, electronic, mechanical, photocopying, recording or any information storage retrieval system, without the prior written permission of the publisher. Unauthorized copying may subject violators to criminal penalties as well as liabilities for substantial monetary damages up to $100,000 per infringement, costs and attorneys\u2019 fees.<\/p>\n\n\n\n

      This publication should not be utilized as a substitute for professional advice in specific situations. If legal, medical, accounting, financial, consulting, coaching or other professional advice is required, the services of the appropriate professional should be sought. Neither the authors nor the publisher may be held liable in any way for any interpretation or use of the information in this publication.<\/p>\n\n\n\n

      The authors will make recommendations for solutions for you to explore that are not our own. Any recommendation is always based on the authors\u2019 research and experience.<\/p>\n\n\n\n

      The information contained herein is accurate to the best of the publisher\u2019s and authors\u2019 knowledge; however, the publisher and authors can accept no responsibility for the accuracy or completeness of such information or for loss or damage caused by any use thereof.<\/p>\n\n\n\n

      Unless otherwise noted, the source for all data cited regarding financial advisors in this report is CEG Worldwide, LLC. The source for all data cited regarding business owners and other professionals is AES Nation, LLC.<\/p>\n\n\n\n

      <\/p>\n","protected":false},"excerpt":{"rendered":"

      Wealthy individuals and families by and large like to work with highly skilled advisors\u2014from wealth managers to accountants, lawyers and beyond. And why wouldn\u2019t they? If you have the financial ability to access advisors who are known for their technical capabilities in areas like tax mitigation, estate planning, investment management and so on, why wouldn\u2019t […]<\/p>\n","protected":false},"author":21,"featured_media":3733,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[],"acf":[],"yoast_head":"\nA Key Ingredient That Makes Good Wealth Managers Great - Fusion Wealth Management<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/fusionwm.com\/a-key-ingredient-that-makes-good-wealth-managers-great\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"A Key Ingredient That Makes Good Wealth Managers Great - Fusion Wealth Management\" \/>\n<meta property=\"og:description\" content=\"Wealthy individuals and families by and large like to work with highly skilled advisors\u2014from wealth managers to accountants, lawyers and beyond. 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