Managing your wealth is incredibly important. It’s the best way to make sure your money works as hard as it can for you, and you retain your wealth to secure a strong and financial future.
Hiring a wealth manager isn’t limited to high net worth individuals (HNWIs), either. It’s something that those with an increasing amount of financial complexity would also benefit from.
Knowing how to choose a wealth manager and selecting the right one is one of the most important financial decisions you can make as they provide you with way more than just investment advice. It’s a service that can include tax planning, estate structuring, retirement strategies, philanthropy planning and access to exclusive investment opportunities.
The right wealth manager will not only help grow and protect your wealth, but will also align your financial strategies with your personal and family goals. They also help lower risks, such as missed opportunities and loss of capital.
In this article, we’ll cover:
- Selecting a wealth manager extends beyond investment advice, offering services like tax planning, estate structuring and retirement strategies.
- A qualified wealth manager should align financial strategies with your personal and family goals, critically impacting your financial security and growth.
- Wealth management is beneficial not only for HNWIs but also for anyone with increasing financial complexity seeking professional guidance.
7 Factors to Bear in Mind When Choosing a Wealth Manager
Choosing a wealth manager is about partnering with a professional who understands your goals, values and long-term vision. Whether you’re focused on building wealth, protecting assets or planning for future generations, the right advisor can make a massive difference. Here are seven factors to keep in mind when making your decision.
1. Define Your Needs and Expectations
Before you even start your search for a wealth manager, you should understand why you need one. To do this, you have to think about your objectives. Do you purely need investment guidance or do you want a comprehensive service that includes tax efficiency strategies, estate planning and succession advice?
You should also consider how you prefer to work. Some clients opt for fully discretionary management, where the wealth manager makes investment decisions on their behalf. Others prefer an advisory relationship, where they collaborate on each decision. There’s also the option of digital or hybrid models that combine human expertise with technology-driven tools.
Proper clarity will help you narrow down potential managers who can best meet what you’re looking for.
2. Check Credentials, Regulation and Fiduciary Duty
A professional wealth manager’s credentials say a lot about their expertise and commitment to high standards. Look for respected designations such as CFP® (Certified Financial Planner) or CFA (Chartered Financial Analyst), depending on your market.
Whenever possible, choose a professional bound by a fiduciary duty, meaning they’re legally obligated to act in your best interest. This helps minimise conflicts of interest and ensures transparency. When it comes to putting your trust in someone, especially when it comes to your finances and your future, this is absolutely essential.
3. Evaluate Services and Breadth of Expertise
Not all wealth managers offer the same scope of services. Some focus solely on investments, while others provide integrated financial planning, including tax optimisation, trust and estate planning, insurance, and access to alternative investments such as private equity or real estate.
If you have specific wants and needs, like managing complex cross-border assets, handling business succession or structuring multi-generational wealth, ensure that your chosen wealth manager has experience in these areas. Ask to see proof, such as case studies, which will give you confidence in your decision.
4. Understand Investment Philosophy and Performance
A wealth manager’s investment philosophy should align with your own risk appetite and goals. Ask them how they approach portfolio construction: Do they use a top-down macroeconomic view, a bottom-up security selection process or a mix? Are they active or passive in their approach?
Performance data is also crucial. Request results spanning multiple market cycles and ensure those returns reflect the current team managing your assets, not a past team whose track record might not be relevant anymore.
5. Examine Fees, Transparency and Conflicts of Interest
Pay close attention to fees, as these can vary wildly. There are also several different structures, with the most common including:
- Percentage of assets under management (AUM): Typically 0.25 – 2% annually
- Flat fees: A fixed amount regardless of portfolio size
- Hourly rates: Often for consulting or one-off advice
- Commissions: Tied to specific products or transactions
It’s about clarity just as much as it’s about cost. You need to understand how they’re compensated, whether they receive payments from third parties and if they recommend proprietary products. Transparent disclosure is essential. This is because you want to know if they’ll receive a kick-back if you recommend something, which in turn will help you see whether they’re recommending something for your benefit or theirs.
6. Consider Personal Fit and Client Service
Employing a wealth manager is a big deal. After all, you’re entrusting someone with your financial future, so trust and rapport are non-negotiable. The relationship should feel collaborative, and you should be confident that they understand your priorities and values.
Here are several questions you should ask a potential firm:
- How often will you receive updates?
- Will you have a dedicated adviser or a team?
- How quickly do they respond to changes in your circumstances?
Good wealth management is as much about communication as it is about numbers. The last thing you want when it comes to your money is to be left wondering for weeks or months at a time.
7. Practical Steps to Selecting the Right Manager
Start by asking for recommendations from peers and trusted professionals such as accountants or lawyers. Once you have a shortlist, approach at least two or three potentials. Prepare questions about:
- How they handle conflicts of interest
- Their investment process and decision-making criteria
- Their client service model and communication frequency
- Their approach to long-term wealth planning
Comparing responses will help you narrow down your options and identify the manager who best aligns with your needs.
When Professional Help Makes Sense
Despite what some might think, wealth management isn’t just for the ultra-wealthy. It’s for anyone who might need a little extra help with changing finances and feel like they could get away from you if not properly managed. For example, if you have a growing career, inheritance, real estate holdings, stock options or planning for retirement, a wealth manager can add significant value.
A coordinated approach to investments, taxes and estate planning can reduce risks, uncover new opportunities and provide peace of mind that your wealth is working as hard as you are.
Take the Next Step
Now that you know how to choose a wealth manager, it’s time for you to transform your financial future. At MHG Wealth, we combine proven expertise, transparent fees and a personalised approach to help you achieve your long-term goals.
Whether you’re in the UK, Dubai or Abu Dhabi, our team is ready to create a personalised strategy for your wants and needs.
Key takeaways:
- Evaluate wealth managers based on credentials, regulation, investment philosophy and fee transparency to ensure alignment with your needs.
- Building a strong personal fit and communication with a wealth manager is essential for a successful partnership.
- Professional wealth management can reduce risks and uncover opportunities, making it valuable for individuals with diverse financial interests and goals.
Explore our Wealth Management Services or speak to our experts today.
Wealth Manager FAQs
Do you need a wealth manager if you’re not ultra-wealthy?
Yes. Wealth managers can help with financial planning, investment strategy and risk management even if you have a modest portfolio.
How do you check a wealth manager’s credentials?
Verify professional qualifications and confirm regulatory status via public registers such as the FCA register or SEC database.
What is a fiduciary, and why does it matter?
A fiduciary must act in your best interests, reducing potential conflicts from commissions or product incentives.
How much do wealth management fees cost?
It varies. Fees typically range from 0.25% to 2% of AUM. Some firms ask for fixed or hourly fees. Transparency is key, so make sure you fully understand how much your chosen wealth manager charges.
How do you know if their investment style fits you?
Discuss their philosophy and process in detail, and ensure it matches your goals and comfort with risk.
