When Should You Shake Up Your Wealth Management Team?
A coordinated team effort by professional advisers is a valuable wealth management tool. It helps focus all your various team members' efforts on a common goal and strategy. Sometimes, however, changes must be made.
This difficult task falls to you as the team's ultimate leader. Here are three key indicators that it might be time to cut ties with a team member...
1. Complaints: You discover that a complaint is filed with a team member's governing body. Make sure you know about the proper oversight boards for all your team members and how to monitor its actions. When a complaint is filed, follow up. If it is found to be warranted, immediate removal from your team is justified.
2. Corporate changes: There are two common changes that could affect your team. First, the company with which you work is acquired, resulting in a significant change in the ownership structure. If your team member remains with the new company, make sure he can still work with you under the same or similar fee arrangement and that there are no new conflicts of interest.
3. Personal problems: Professionals obviously don't need to be friends to effectively manage your accounts, but a civil relationship is necessary to do so in an optimal manner. When personal relationships among team members are strained, your wealth management goal could be adversely affected. If you see a breakdown in relationships, it may be to your benefit to try and smooth out the conflict. If that is not possible, then it is time to make a tough but necessary decision to remove one or all of the members in conflict.
At the first indication that it is time to make a change to your wealth management team, look to potential replacements. Ideally, it should be someone who knows you, your financial perspective and at least some of the other members of the team.
A properly credentialed new team member who can step right in will ensure that your wealth management strategy is maintained without any costly delays or breaks.
Finally, do not be afraid to make a change. Yes, consistency in your financial team can certainly help you reach your financial goals in the most effective manner possible. But necessary fine tuning to the team's make-up is just as important.
By being a proactive manager of your team, you can ensure that its efforts remain focused on your continued financial success.