The acquisition of your wealth management firm can be a time of uncertainty and change. Especially if it’s happened multiple times in recent years, you might wonder how it impacts you. As a client, it’s important to stay informed and proactive to ensure that your financial goals continue to be met. Here are some crucial questions to ask when your firm is undergoing such a transition.
1. Who Will Be Managing My Account?
– Question: Inquire about any changes in the advisory team or the person directly responsible for your account. What experience and credentials do these individuals have and how long have they been in their roles.
– Why It’s Important: Building a relationship with your advisor is crucial. Knowing who will be managing your account helps maintain trust and communication. Understanding the experience and credentials of your advisors is vital especially if you have less common types of investments.
2. How Will Staff Turnover Affect My Experience?
– Question: Ask about the potential impact of staff changes on your experience and the continuity of service. Specifically, inquire if any key people involved in managing your accounts have left or are planning to leave.
– Why It’s Important: Understanding how staff turnover might affect you ensures that you can anticipate and adapt to changes in your advisory team. Knowing about the departure of key personnel allows you to assess the continuity and quality of service you can expect.
3. What Are the Long-Term Plans for the Firm?
– Question: Understand the vision and long-term plans of the acquiring firm.
– Why It’s Important: Knowing the firm’s future direction can help you decide if it’s the right fit for your financial journey. If the firm has been through multiple transitions understand why, if it’s likely to continue, and if these changes are to your benefit or to the benefit of the firm.
4. Will There Be Any Changes to the Fee Structure?
– Question: Find out if the acquisition will result in changes to the fees you pay for services.
– Why It’s Important: Understanding any changes in fees helps you assess the cost-effectiveness of continuing with the firm. Ask what you’re currently paying and how it will change with the new firm. If you’re comparison shopping ensure that you’ve captured all fees for an ‘apples-to-apples’ comparison.
5. What Is the Investment Philosophy of the Acquiring Firm?
– Question: Learn about the investment strategies and philosophies of the new firm.
– Why It’s Question: Aligning with a firm whose investment approach matches your risk tolerance and financial goals is crucial for your peace of mind. If your advisor is unable to articulate their investment philosophy and how it’s being implemented this is a cause for concern.
6. How Will My Personal Information Be Protected?
–Question: With mergers and acquisitions, there can be concerns about data security. Ask about the measures in place to protect your personal and financial information.
– Why It’s Important: Ensuring that your information remains secure is essential to prevent identity theft and fraud.
Conclusion:
The acquisition of your wealth management firm can bring about significant changes. By asking these questions, you can gain clarity, ensure that your financial objectives remain a priority, and make informed decisions about your financial future. Paying special attention to staff turnover and the people you will be working with is crucial for maintaining a strong, trusting relationship with your wealth management team. Remember, it’s your right as a client to seek answers and reassurance during times of transition.
