Worried what to ask a potential wealth manager? Here are some initial questions to get your started.
If you are trying to find a wealth manager and don’t know where to start here is a quick guide with some initial questions to ask.
Wealth managers differ significantly in the services they offer. Some are online only wealth managers offering access to investment products through a range of pre-chosen ETFs, some focus on ethical investments, others only offer their own selection of funds, whilst some offer access to the entire market place of investment and savings products.
Top three questions to ask a wealth manager
- How do you manage your own money? – You should get a clear and simple answer here.
- How will I interact with my portfolio? – You definitely need a firm with good online access and regular reporting.
- Who will look after me? – You need to make sure that whoever is looking after you has a clear understanding of your attitude to risk and investment objectives.
- Need a wealth manager? Find a wealth manager here.
Make sure you also ask about fees
It’s important to ask about fees, in particular exit fees. If you don’t get along with your wealth manager you need the option to leave and switch to another wealth manager without being penalised financially for doing so. After all, you could be using the same point of contact for twenty years. So it’s important you have a good relationship with them.
Some large wealth managers, charge up to 6% of the value of your portfolio when you leave. In many cases, this acts like a handcuff as if you have £1m under administration with them, the fine for moving is £60k.
Most wealth managers are upfront about costs but do note it is hard to compare wealth management fees directly as many offer different service levels. For example, some include advice for free but have a higher annual fee, whilst others have a lower annual fee, but charge extra for advice
7IM which offers wealth management services have also come up with three initial questions to ask a wealth manager:
Richard is the founder of the Good Money Guide (formerly Good Broker Guide), one of the original investment comparison sites established in 2015. With a career spanning two decades as a broker, he brings extensive expertise and knowledge to the financial landscape.
Having worked as a broker at Investors Intelligence and a multi-asset derivatives broker at MF Global (Man Financial), Richard has acquired substantial experience in the industry. His career began as a private client stockbroker at Walker Crips and Phillip Securities (now King and Shaxson), following internships on the NYMEX oil trading floor in New York and London IPE in 2001 and 2000.
Richard’s contributions and expertise have been recognized by respected publications such as The Sunday Times, BusinessInsider, Yahoo Finance, BusinessNews.org.uk, Master Investor, Wealth Briefing, iNews, and The FT, among many others.
Under Richard’s leadership, the Good Money Guide has evolved into a valuable destination for comprehensive information and expert guidance, specialising in trading, investment, and currency exchange. His commitment to delivering high-quality insights has solidified the Good Money Guide’s standing as a well-respected resource for both customers and industry colleagues.
You can contact Richard at richard@goodmoneyguide.com
