Three things you should consider when choosing a wealth manager

May 25, 2016

The wealth management industry is highly regulated with several agencies watching over it. However, as with any financial decision it is smart to be educated when selecting someone to assist you in managing your money. Here are a few questions to ask when selecting a wealth manager to help handle the future of your personal finances.

Is he or she a financial expert? This should be a given, but you would be surprised how many managers out there are solely experts in relationship management. While a relationship is extremely important in building faith and trust in the person helping manage your money, you are really turning to your wealth manager for sound financial advice. You want to work with someone who will do their due diligence and suggest investment vehicles that serve your best interest. Ask your wealth manager if they are bound by law to act in your best interest in a fiduciary capacity.

Will they be focused only on producing a diverse portfolio or on the big picture? While diversity is important in building a sound portfolio, there are so many other factors that need to be considered in order to achieve your financial goals. Sometimes, your plan may not always focus on receiving the best possible return. For instance, are you sure that your assets are being securely passed down to your beneficiaries with enough money available to cover the estate taxes? It’s more important to define what wealth is to you at each stage of your life and the best methods to meet those goals, whether it’s via a trust or other method, rather than just building a diverse portfolio.  A good money manager will recognize this and guide you along a path to success.

How do they charge for their services? Know all the sources of your advisor’s income as it relates to your accounts. Not all wealth managers charge the same way. Some are strictly fee-based; others are paid incentives by third parties to push their products. Confirm that your wealth manager is always working in your best interest, working for you not for someone else. Also, be sure to ask and read all disclosure documents to understand what fees are associated with which services.

Texas Gulf Bank delivers wealth management services and solutions that help build, preserve and manage your financial future. We work hard to understand our clients’ aspirations to help develop a solid strategy to achieve each individual’s goals. Don’t let another day go by– schedule a complimentary consultation with one of our wealth management officers and let us help you plan for your future beginning today.

Notice: Wealth Management Department Investments include non-deposit investment products which are:

  • Not bank deposits
  • Not FDIC insured
  • Not insured by any federal government agency
  • Not guaranteed by the bank
  • May decrease in value