There comes a time for many investors when one’s portfolio becomes simply too large to manage alone. That’s a great moment obviously – it means you’re doing something right – but it can also be an uneasy prospect, since it means that you should entrust your hard-earned money to someone else. It seems, as you dive deeper into your research, that there are a vast number of wealth management companies, and making the distinction between a good one and a not-so-good one can be difficult.
In choosing a wealth management company to work with, you may consider the following: who are their primary clients; whether they have positive reviews or external recognition; and how they make their money. Of course, these are sizeable and sometimes time-consuming considerations to endeavour, which is why it’s always best to work with a wealth management service like Wealth Management Canada – whom you can find at Wealthmanagementcanada.com – when looking for a new wealth management company.
If you’re unfamiliar with such a service, it’s pretty straightforward – they research, vet and select only the best wealth managers, aiming to match you with someone who will strengthen your investments. Think of them as gatekeepers, a first line of defense against wealth managers who may not have your best interest in mind.
But, even choosing to work with a service like that, it’s still best to understand what characteristics of a quality wealth management company, and in order to do that this article will parse out those aforementioned considerations, starting with looking into a company’s clients. The reason you might want to do this is because some companies (or solo wealth managers) have more experience with investors whose assets are under 100k or 200k, while others do their best work with clients over the million-dollar mark. That’s not to say you can’t find wealth managers adept at various asset levels, but it’s certainly something to keep in mind.
Next, you want reassurance in the form of positive reviews and/or external recognition – testimonials, awards, that sort of thing. At the very least they should have proper accreditation. This is where services like Wealth Management Canada shine, since they have ready access to information like the performance, people and philosophies of different wealth management companies. They’re not in it for your money (you don’t actually give them any), but instead operate on a philosophy of investor empowerment – so use them if you’re at all unsure.
Finally – and this one may be tricky – you want to find out how a wealth management company makes its money. If they make money the standard way, by levying fees on their clients according to portfolio size, proceed. If they make a commission on products they sell you, you should be leery of their intentions. Again, working with a service can make this vetting process much, much easier.
Choosing the right wealth management company isn’t like choosing a menu item at a restaurant – it’s an important decision that will have an effect on your retirement. Take your time, talk to a service with your interests in mind, and take these few considerations into account. This is one type of preparedness that quite literally “pays off”.