WEALTH MANAGEMENT

For business owners and families who have accumulated substantial assets, choosing the right wealth management firm can significantly impact the growth and preservation of your assets and your family’s financial future. Appropriately chosen, your wealth management firm will be with you and your family for decades, helping to guide your financial strategy as you build, preserve and, ultimately, pass on your wealth.

Sound financial advice and long-term wealth stewardship are not commodities. The following are five key considerations to help you choose the right firm for you or in assessing the performance of your existing firm:

1. Do they take the time to listen and understand your needs and goals?

This is your journey, so before creating your unique plan, a wealth management advisor needs to understand what you are trying to accomplish and define your concerns. Your first meeting is about having a conversation to identify what’s important to you and your family. This is also the time when you can get a good sense of what the relationship might look like. Do you get a feeling of trust, integrity, and transparency?

2. Will they provide personalized experience?

An important element in selecting the right firm is customization. Will the advisor develop a comprehensive wealth strategy specifically designed and personalized to your priorities and goals? Or will they try to fit you into a predesigned wealth plan or investment portfolio? Are they prepared to provide regular meetings and updates as often as you feel is necessary? Regular, in-person meetings can help ensure that your wealth strategy is adjusted for any changes in the markets, your business or employment, and your personal life status.

3. Assess the firm’s reputation, credibility, and client base.

“Clients need to understand the type of advice offered and if a firm works for families with a similar wealth profile and source of wealth,” says Chip Flannagan, Senior Vice President and Managing Director of Fifth Third Private Bank Chicago. “Does the firm have a strong track record of working with wealthy families and guiding them over several generations? You’ll also want to ask about the size of the firm’s assets under management. When a firm has billions of dollars under management in its wealth advisory division, that is a sign that the organization has been successfully investing funds for many years.”

Flannagan suggests asking about the firm’s other clients. A longstanding firm should have a list of clients who are willing to discuss their relationship with the firm. Be sure to contact current clients about their experience.

4. What is their investment management approach? A wealth management firm’s investment approach is a critical area to explore. Some fundamental questions to ask are:

• What is the firm’s investment philosophy?
• What type of research and due diligence does the firm engage?
• How are portfolios constructed and managed?
• What asset classes and investment choices are available?
• Does the firm utilize mutual funds or individual securities?
• Does it only offer internal/proprietary investment opportunities or is there access to outside managers?
• Is the investment approach customized to the client or model- based?
• What is the firm’s historical investment performance?

The answers will help you determine if your investment philosophies are aligned and if they offer a range of investment opportunities to meet your unique needs and goals.

5. Does the firm have the capabilities and expertise for all of your needs?

Flannagan advises clients to consider the firm’s capabilities beyond investment management. You want a firm that offers a full range of wealth management capabilities, including custom lending, tax strategy, estate planning, trust and fiduciary services, high-net-worth insurance solutions, and business transition planning. “Think of your wealth management advisor as your personal CFO,” Flannagan adds. “It’s difficult, almost impossible, for one individual to wear that many hats. So, he or she will likely need to bring in subject matter experts and specialists to properly serve all your needs.”

Therefore, it’s important to ask for details about the team your advisor can ultimately assemble to offer the comprehensive guidance necessary to execute your unique wealth management strategy.

In most cases, these five considerations should help you define the capabilities you should be looking for when selecting a wealth management firm and finding the right fit for you and your family.

Fifth Third Bank does not provide tax, accounting or legal advice. Please contact your tax advisor, accountant or attorney for advice pertinent to your personal situation. This commentary is intended for educational purposes only and does not constitute the rendering of investment advice or a specific recommendation on investment activities or trading. Fifth Third Private Bank is a division of Fifth Third Bank, National Association, which is an indirect subsidiary of Fifth Third Bancorp. Banking, investment and insurance products and services are offered through or made available by one or more of Fifth Third Bancorp’s indirect subsidiaries. Investments, investment services, and insurance: Are Not FDIC Insured | Offer No Bank Guarantee | May Lose Value | Are Not Insured By Any Federal Government Agency | Are Not A Deposit Insurance products made available through Fifth Third Insurance Agency, Inc.