Building Wealth Requires Great Responsibility

From young professionals to seasoned business executives, determining what to do with each paycheck is important. But the options are vast, and it can be challenging to determine which method of saving, investing and other forms of wealth management are right for one particular family’s needs. 

When to engage a wealth manager

Proactive families may want to make financial planning a top priority based on some seismic trends heading

our way. 

For example, an estimated $60 trillion of U.S. wealth will transfer over the next 5 1/2 decades, according to a new study from the Center on Wealth and Philanthropy at Boston College. Knowing that this massive handover of wealth is coming from the baby boomer generation, now is the time for proactive individuals seeking to seize the opportunity to preserve and grow their wealth.

Home to several Fortune 500 companies – from Kroger to Procter & Gamble – Cincinnati will be no exception to this issue in years to come. These companies alone produced revenues topping $250 billion in 2014 and employed some 50,000 workers in the area, according to Factset data.

It can be daunting to explore the financial opportunities ahead alone, but can a professional wealth manager really help? Our society continues to be fast-paced and time-crunched, so many find it essential to preserving and growing their assets, preparing next generations for stewardship of family wealth and setting

philanthropic goals.

Working with a wealth manager should be looked at as a partnership and requires full disclosure and patience. In the beginning, ask many questions. Clients should fully understand the potential benefit of professional financial advice and be part of every aspect directing it. Feeling comfortable is essential to success.

Before you engage a professional wealth manager, you should consider the following questions:

What should I expect as a customer?

A good advisor (or a team of advisors in some firms) should be seen as a trusted friend and confidant. Clients should expect authentic engagement and expertise in many areas including the economy, philanthropy and wealth transfer. As a result of the changes in advisor-client relationships over the last several years, some clients may find their connection with their wealth managers more meaningful than with a firm.

Partnering with a wealth manager vs. seeking periodic financial advice?

A good starting point for determining when to partner with a wealth manager is when you have approximately $1 million in investable assets and a net worth of $3 million. Wealth can include investment and retirement accounts, real estate, businesses and other assets, or could come from an inheritance or large transaction. Typically, clients at this level require a wide range of services that a professional wealth manager can assist with: portfolio management, retirement and estate planning, or perhaps plans for the transition of wealth or a business to children.

How has wealth management evolved?

The wealth management industry is diverse, ever-changing and in demand. The industry evolves as client needs progress. Wealth management services have greatly expanded in terms of products, availability, transparency, education and technology used. 

What are wealth management’s most significant hurdles?

The Great Recession may have created uncertainty for many regarding the reputations of financial service professionals and institutions. A client should feel like an individual. An advisor should take the time to get to know you, your personality and concerns, as well as your family situation. This is how we believe the most effective strategies to meet your objectives are designed. Through a solid relationship with a wealth management professional, a specialized wealth plan can act as a roadmap for helping you meet your needs and life goals.

T.J. Davis is a wealth management advisor for The Private Client Reserve of U.S. Bank in Cincinnati.

Investment products and services are:   

Not a Deposit • Not FDIC Insured • May Lose Value • No Bank Guarantee • Not insured by any Federal Government Agency.

U.S. Bank and its representatives do not provide tax or legal advice. Each individual’s tax and financial situation is unique. Individuals should consult their tax and/or legal advisor for advice and information concerning their particular situation. Credit products are offered by U.S. Bank National Association.