Investors should be doing due diligence to see if their current or potential wealth advisor is a good match, says award-winning portfolio manager Thane Stenner
Many investors work with wealth advisors recommended by family, friends or professional acquaintances such as an accountant or lawyer.
Referrals are helpful, but the wealth advisor your uncle or real estate lawyer uses may not be the right fit for you. It’s likely your income, spending, personality and communications fit, assets, family circumstances and retirement goals are unique, which means your discussions with a wealth advisor will differ.
Investors looking for a compatible wealth advisor need to do some due diligence, including interviewing a few qualified professionals to find the right match. Treat it like a job interview where you’re the boss looking for the ideal candidate to help run your business — which, in this case, is your investment portfolio.
Investors should feel empowered to ask questions about the advisor’s ideal client profile in terms of investment capital, net worth, personality profile, risk profile and background, says Thane Stenner, a senior portfolio manager and senior wealth advisor with Stenner Wealth Partners+ of Canaccord Genuity Wealth Management.
The answers will help you better understand where you would fit in the advisor’s book of business and indicate the level of service you would receive.
“Many investors don’t want to feel like they’re the smallest client by asset size because it might mean they won’t get as much attention. Or, if they’re the biggest client, maybe they’re missing out on opportunities the advisor may not have access to,” says Mr. Stenner, who works with ultra-wealthy clients with $25-million-plus net worth across Canada and the U.S.
Investors already working with an advisor should also feel free to ask them these same questions every year or so, Mr. Stenner says.
“It’s possible the advisor may have outgrown you, or you’ve outgrown them,” he says. “It happens. If someone, by example, has $2-million and has worked with an advisor a long time, but now sells their business for $50-to-$100-million-plus, they may feel like they have moved up the wealth curve, and need more advanced advisory services/strategies.”
Having an advisor with clients similar to you can be beneficial because they will have experience working on the same issues. For instance, if you’re a business owner with a family foundation and your advisor has other clients with similar holdings, they will have the background, resources and insight to manage your assets appropriately.
“That depth of experience benefits all clients an advisor works with while also giving the investors peace of mind that they’re being well taken care of,” Mr. Stenner says.
Looking for more market insights? Listen to Thane’s podcast here: https://stennerwealthpartners.com/bnnbloombergpodcasts
Canaccord Genuity Wealth Management is a division of Canaccord Genuity Corp., member-Canadian Investor Protection Fund and The Investment Industry Regulatory Organization of Canada.
Advertising feature produced by Globe Content Studio with Stenner Wealth Partners+ of Canaccord Genuity. The Globe’s editorial department was not involved.