The best wealth management advisors aren’t one size fits all.

One leading financial publication defines wealth management as “the combining of personal investment management, financial advisory, and planning disciplines…” But as the best wealth managers can attest, it is much more than a financial science – it is also a very human art.

The science starts with the finest in investment management but extends well beyond it, requiring a practitioner with a command of the latest approaches to:

Customized risk management
Wealth preservation and growth
Effective diversification
Optimal tax efficiency
Adept financial planning
The art of wealth management requires exceptional financial expertise plus a very personal, individualized approach to every client. What is a client’s life stage? What particular needs arise, or contingencies must to be planned for, stemming from special family or business situations? What are a client’s personal goals and the time horizons for each? Answering these questions demands human insight as much as it does financial acumen.

Wealth managers aren’t just for the ultra-wealthy.

Unfortunately there is a persistent misconception that if you’re not old money, private jet rich you must not really need a wealth manager (or even qualify for one). However, given the complexity of preserving and growing assets in today’s environment, anyone with two to three million dollars of total assets, or greater, may be wise to enlist the more comprehensive services of a seasoned wealth advisor. An article in Forbes put it this way: “Wealth managers do a lot more than pick stocks. They can help you plan your total financial life. And you don’t need to be rich to use one.”

What to look for in a wealth manager

Because managing all key aspects of your financial well being is more involved than traditional investment relationships, it is prudent to interview several advisors, considering:

What is their range of service, and does it cover all your needs?
What is your wealth manager’s personal expertise?
What is your advisor’s investment philosophy? Also, ask them to explain how that fits your unique needs.
Were their questions to you strictly investment-based or did they inquire more broadly?
Who is your advisor’s “back office” (broker-dealer); what is their reputation and level of service?
How does your advisor make money – on stated fees or varying commissions? Ask for both a detailed explanation of, and justification for, the fee structure.
What is the quality of their references and the consistency of the response? Even if you have come to an advisor via a personal reference, cross-referencing client experience can be very illuminating.
And remember: the objective is not to find that generic “best wealth manager.” The objective is to find your best advisor for your individual needs.

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THOR Investment Management, Inc. is a Cincinnati wealth management firm.