The world of finance today is far too vast and complex for any one advisor to become a “jack of all trades.” That’s why it’s important to build a team of advisors with expertise in different specialties, ranging from insurance coverage for life, health, disability, long-term care and retirement income to investment, tax, college, retirement, philanthropy, business succession and estate planning. These professionals may include a financial advisor, CPA, attorney, and insurance agent, among others. Assembling a team of experienced professionals can help ensure you cover all the bases of your financial picture.
Your team of advisors should work together to coordinate their advice; otherwise, you could end up with either overlapping products or gaps in your plan. When advisors don’t collaborate, an investor may receive contradictory advice.
To give you a comparable example, let’s say you’re working with a personal trainer and a nutritionist to improve your health. One might say you should load up on carbohydrates while the other says you should cut back. When everyone’s working collaboratively toward the same goal, you’re less likely to receive competing advice.
Each team member should offer expertise specific to their discipline. However, when advice is conflicting or overlaps, do you know how to recognize the discrepancies and resolve them? Do you have the time to communicate changes in transactions or strategy, get each advisor the information they need and follow up to make sure each one completes their piece of the puzzle?
That’s where a team manager can be a tremendous asset.
For your advisory team to be effective, all members must be willing to communicate with you and each other in a timely fashion. A team manager can help coordinate activities performed on your behalf, ensure each team member has the paperwork and information they need and facilitate collaboration when it makes sense.
A retirement plan may require a mix of the bank, investment and insurance products to provide steady and reliable income designed to last throughout your lifetime. Many of these products and services have the potential to create redundancies and/or work at cross purposes. An experienced team manager should be able to identify problems and work with other team members to iron out solutions on your behalf.
One of the most common mistakes in financial planning is not making proper beneficiary designations on an IRA, 401(k) plan, securities portfolio, trust, bank accounts or insurance policies. An estate planning attorney can help determine how to allocate assets in your estate plan, but you’ll likely need to work with advisors in other fields to focus on the paperwork in their respective professions. An experienced, knowledgeable team manager can help coordinate these efforts to help ensure there are no redundancies, miscommunications or paperwork that slips through the cracks.
A team manager is a person charged with the 360-degree perspective; an advisor who understands the nuances of each of these areas and knows when to consult with a specialist for additional information and advice.
There are several criteria you should consider when deciding who to ask to serve as your financial team manager. Consider:
Another key element to selecting team members is making sure they are willing to work with each other. This means they should appreciate that if your team manager calls to discuss or request information on your behalf, they should be as prompt and professional as they would be if you were making the call yourself.
“People really prefer not to have five or six relationships where they’re constantly wondering, ‘Does my accountant know what my lawyer is doing, or does my insurance person need to be updated by my financial planner?’”
A financial plan isn’t something you purchase “off the rack.” It should be customized specifically for your needs and stay on track to achieve your goals. Unfortunately, most of us are busy just trying to keep up with our own day-to-day responsibilities. In addition to a lack of time, most people typically don’t have the experience and expertise to develop and coordinate a comprehensive financial plan.
Your team manager should be both willing and able to work with all members of your financial team to help define your personal financial strategy and ensure that each member successfully implements his or her part of the overall plan.
1 Marjo Johne. The Globe and Mail. May 3, 2017. “Financial ‘dream teams’ put wealthy clients front and centre.” http://www.theglobeandmail.com/globe-investor/globe-wealth/dream-teams -put-wealthy-clients-front-and-centre/article34884790/. Accessed May 3, 2017. The advisory firm providing you this report is an independent financial services firm helping individuals create retirement strategies using a variety of investment and insurance products to custom suit their needs and objectives. Investment advisory services offered through AE Wealth Management, LLC. Investing involves risk, including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values. The information and opinions contained herein provided by third parties have been obtained from sources believed to be reliable, but accuracy and completeness cannot be guaranteed by AE Wealth Management. This information is not intended to be used as the sole basis for financial decisions, nor should it be construed as advice designed to meet the particular needs of an individual’s situation. None of the information contained herein shall constitute an offer to sell or solicit any offer to buy a security or insurance product. AE WEALTH MANAGEMENT
We are an independent financial service firm helping individuals create retirement strategies using a variety of investment and insurance products to custom suit their needs and objectives. Financial planning, investment advice and insurance provided through Business-owner Strategies Group, LLC a North Carolina Registered Investment Adviser and Licensed Insurance Agency d/b/a BSG Advisers. Wealth CAPS does not provide legal or tax services.