Do I Need a Wealth Manager?

If you have done any investigating in the realm of services offered by top-tier financial advisors, then you are most likely familiar with the term wealth manager. Contrary to popular belief, individuals who provide wealth management services give more than just financial advice to individuals with a high net worth.

Financial advisors on the Morris Financial Concepts team who specialize in wealth management services offer a variety of holistic advice pertaining to all areas of financial life such as investment management, accounting and tax services, retirement planning, philanthropic giving, financial planning, and even estate and legacy planning.

If you are currently looking into hiring a financial advisor, the professionals at Morris Financial Concepts have broken down the basics behind wealth management:

What Exactly is Wealth Management?

Wealth management can be looked at as a large package that encompasses many areas of financial services and customized to fit the client’s unique financial needs. Wealth managers manage the various relationships within the account between advisors, accountants – even lawyers – to keep all aspects of your finances running smoothly.

The goal of wealth management at Morris Financial Concepts is to plan and manage your finances to ensure the cultivation and preservation of your wealth for decades to come.

How can a Wealth Manager help me?

A wealth manager offers a plethora of services that are catered to each client’s individual needs and financial goals. These services can range from retirement planning to investment management. Here’s a list of wealth management services offered by Morris Financial Concepts:

  • Financial Planning
  • Retirement Planning
  • Family Legacy Planning
  • Risk Management and insurance planning
  • Estate Planning
  • Accounting and Tax Strategies
  • Investment Management and Advice

Are there fees involved?

The answer to this question can vary depending on which financial firm you are working with.

Some wealth managers make money off of the products that they sell you. They might recommend a particular mutual fund, life insurance, or variable annuity product to fit your needs, and they make a commission off of buying and selling that product. In theory, these types of wealth managers should disclose to you how much they are making on the products they are selling you, so you can make an informed decision.

Other wealth managers and financial advisors, including Morris Financial Concepts charge clients a base fee and make no commissions of any product which is why MFC is considered a fee-only financial firm.

Wealth managers might charge a percentage of the assets they manage for a client as well, which on average is around 1% annually. Some firms may also charge hourly or annual fees, depending on the type of financial advisors you choose to work with.

How should I choose a Wealth Manager?

Selecting the right wealth manager for your household is similar to choosing the right financial adviser. It’s important to take into account the cost of a wealth manager, payment structure, qualifications, and even personal considerations.

You should first ask about a wealth manager’s account minimum and their typical client base, as you want to work with someone who has experience with the type of wealth management services you are interested in. The financial professional’s certifications should also give you a clear idea of where their expertise lies.

For example, some financial advisors might specialize in providing services to those about to retire or retirees. Others might help a younger generation develop a plan around getting out of student loan debt and accumulating wealth. Others might focus on managing 401k plans and helping plan participants. Some might focus on the needs of a particular occupation such as physicians or business executives.

Next, you will want to take a look at whether the advisor is fee-based or bill on an hourly or annual basis and whether or not they are fiduciary, which means the advisor will always look out for your best financial interest. A good source of information about your future advisor lies in their Form ADV, which provides any past disciplinary issues the firm may have on record. Take a particular look at Section 4 and Section 10 which spells out what fees they typically charge, and what conflicts of interest they have. This is also a good document to see whether they have any criminal or regulatory charges brought against them as well.

If you have further questions about choosing a wealth manager, setup a consultation with one of the team members at Morris Financial Concepts. We are always happy to answer any financial related questions you may have.

The opinions expressed herein are those of Morris Financial Concepts, Inc. (“MFC”) and are subject to change without notice. This material is for informational purposes only and should not be considered investment advice. MFC is an independent investment adviser registered under the Investment Advisers Act of 1940, as amended. Registration does not imply a certain level of skill or training. More information about MFC, including our investment strategies, fees, and objectives can be found in our ADV Part 2, which is available upon request. MFC-19-14.