How to Pick a Wealth Manager in The Post-Covid World

Last Updated on: 22nd November 2023, 11:09 am

The pandemic caused a number of financial markets to crash and left investors wondering what the outcome would be for their returns. The UK’s wealth managers prepared for the worst, as concerned clients had phones ringing off the hook and a global economic decline seemed imminent.

However, despite the societal and economic crisis we faced, wealth management firms have emerged from the pandemic almost unscathed, and with bright prospects ahead. The majority of their clients fared well, remaining steadfast in their investments with the support of their wealth managers, unlike many DIY investors who anticipated a significant loss and sold up.

While millions of poorer people became unemployed and relied on their savings to survive, the wealthy mostly thrived, retaining their income, and seeing deposits skyrocket in result. It’s clear that those who are fortunate enough to have wealth have a better chance of retaining it with the advice and support of a wealth manager. Read on to find out how to choose one in a post-pandemic world.

Why do wealthy people need a non-traditional wealth manager?

It’s essential for those with a substantial amount of wealth to use trusted wealth managers to support with investment management and provide financial advice.

Many traditional wealth management services simply provide advice on investments, however the individuals who are affluent enough to require it should be supported by a wealth manager who is knowledgeable in all financial areas including tax, inheritance, mortgages, and pensions.

Research your options

It’s important to do your research to ensure you find the right wealth manager for you. You’re going to want to build a long-term relationship with your adviser, as it can be difficult to move between different wealth managers if yours is no longer available.

Narrow down a shortlist of specialists you would like to consider and arrange a meeting or telephone consultation with each. Take this opportunity to ask about their experience, work history and their future plans. Ask about their qualifications and how they seek specialist expertise in areas like tax.

Ensure you ask what your options would be if they were to leave the firm or shut down their business. Would they transfer you to another firm or would you be expected to find a new adviser yourself?

Check the numbers

It can be difficult to compare the fees of various wealth management firms against each other, but you should be given some information on rates when you enquire. Find out what the minimum commitment required is, in terms of fees and time before making any decisions.

Where possible, choose a company which doesn’t link their charges to the arrangement of products or investments. While there are regulations in place to prevent commission payments from product providers, many wealth managers charge a percentage-based fee on assets invested, which can encourage “product pushing”. If you’re not satisfied with the fee you’re offered, you may be able to negotiate with the firm, so don’t feel pressure to take the first price given.

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