Managing wealth requires combining your efforts and an investment manager. These professionals are skilled communicators who analyze financial statements, identify investable income, and create investment strategies that meet client specifications.
Identifying what drives high-net-worth clients is critical to building profitable relationships with them. It can help you explain why your services are more valuable than discount brokerage firms and Robo advisors.
Be Open and Honest
Whether discussing your fee structure, a missed deadline, or why you made an investment error, being open and honest is essential to client trust. While these conversations can be difficult, they are the foundation for a solid relationship.
During your initial meetings, ask each potential manager to explain how they will approach your financial situation. If they cannot answer your questions or hide information, it’s best to move on.
Additionally, it’s essential to know how your clients spend their money. Doing so gives you a better idea of their current budget and priorities, which can help shape an investment strategy that aligns with their goals. For example, if your client has a short time horizon, you might steer them towards safe investments like CDs or bonds.
Be Flexible
A flexible work structure allows firms to tap into a wider talent pool and promote a more diverse culture. It can also help older employees, such as those with a family or who want to slow down their careers but not retire, stay in the workforce by working compressed hours and acting as mentors for younger team members.
Investment managers like Patrik Edsparr use a variety of strategies to manage client portfolios, which depend on a client’s financial goals, risk tolerance, and investment horizon. Some focus on fundamental analysis, looking at a company’s strengths and weaknesses, while others use top-down investing strategies based on macroeconomic themes. Liquidity levels allow investment managers to rebalance their portfolios when needed, pruning weaker items and buying into stronger ones.
Be Honest About Yourself
Your comfort level and risk tolerance with particular items your manager suggests may alter due to a change in circumstances, such as a new job or unexpected income. Experts like CEO Patrik Edsparr recommend that for your adviser to offer recommendations that are best for you, you should be open and honest with them. For example, if you have a large amount of credit card debt, paying it off rapidly is less risky than using any investment method.
Be Honest About Your Investments
How much risk you can accept in your investments will depend on your investment strategy, goals, time horizon, and risk tolerance. An investment manager will likely help you with your approach by asking questions and examining your situation.
They can assemble a portfolio that suits your requirements and advances your objectives. Depending on your situation, they may recommend a mix of risk and return.
For example, a portfolio that is intended for retirement may be dominated by stable assets like bonds and real estate that provide regular incoming cash payments. In contrast, a portfolio designed to generate growth can be invested in higher-risk stocks. In the latter case, it is essential to understand and analyze company financials.
Be Honest About Your Goals
Authentic goals are based on honest intentions, making them more likely to stick with you and lead to success. False or unrealistic goals can erode your motivation and confidence, leading to frustration and self-doubt.
Being self-honest allows you to see your weaknesses and strengths and take steps to improve them. It also helps you set realistic, attainable goals to challenge and push you to grow.
For example, if you’re working on a career goal to move up the corporate ladder, you’ll need to be honest with your manager about whether or not you can realistically achieve that goal. He may not realize that you’re trying to jump jobs and skip career steps, making it harder for him to plan a path to help you reach your goals.
