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| Adrian Mastracci, president
of KCM Wealth Management, says "The
professional's perspective on managing client
wealth always places the client's best interests
above all else." |
For Immediate Release
Vancouver, BC (March 3,
2003): Adrian Mastracci,
investment counsel & president
of Vancouver's “fee-only” KCM
Wealth Management, comments on the importance of understanding
a professional’s perspective in managing
client wealth.
At some point, most investors seek professional
counsel. Usually about what to do with the
investment portfolio. Often, coupled with some
estate, business and retirement planning.
Investor needs may range from a little advice
to the design, implementation and monitoring
of the total game plan.
One recurring question is how do investors
assess whether the professional’s perspective
in managing client wealth is appropriate for
them?
I maintain that the professional’s perspective
is vital for the client. Perhaps, the most
important consideration.
It becomes the framework to accumulate, protect,
grow and transfer the client’s wealth
according to the client’s requirements.
Clearly, this has significant implications.
Most notably, the professional’s perspective
on managing client wealth comes from experience.
For example, my perspective draws upon more
than 30 years of wealth management experience
to meet the diverse needs of my clients.
Learning about the professional’s perspective
in view of what the client seeks is essential.
The professional’s website can shed some
direction about perspective. Newsletters may
be available along with relevant topics about
which the professional has written or been
quoted.
Professional management of client wealth ought
to integrate the investment portfolio with
the appropriate planning for other matters
such as the estate, income tax, retirement
and perhaps the business. All into one plan
tailored for the client’s situation.
The professional’s advice ought to be
governed by what is important to the client
about financial security. The aim is to direct
client wealth with a thoughtful plan that endures
the test of time.
Find a professional whose perspective on managing
client wealth encompasses these pillars. One
who:
- Concentrates on the personal rate of
return to attain the client’s financial
independence.
- Designs the portfolio to accommodate the
client’s
financial independence requirements.
- Identifies the risks the client incurs.
- Considers the client’s long-term investment
time horizon.
- Determines the investment profile appropriate
for the client and stays within it.
- Incorporates the principles of diversification
into the client portfolio.
- Focuses on asset mix as having the greatest
impact on the client portfolio.
- Seeks consistency of returns for the portfolio.
- Minimizes the client’s exposure to
any individual investment.
- Formulates the client’s personal strategy
for handling gains and losses.
- Pays attention to the costs of purchasing,
holding and selling the investments.
- Captures the policies and strategies the
client will follow in a written plan of action.
- Rebalances the client’s mix of assets
as necessary.
- Accommodates the client’s changing
needs and priorities as required.
There are degrees of objectivity. The
highest is held by the professional who
is not
beholden to any product or institution.
The method of compensation for the professional
is a consideration. It could be the fee-only
basis, or the combination of fee and commission,
or commission only.
The professional aspires to become the client’s
trusted source for the wealth management needs.
The professional’s goal ought to be for
the client to realize the personal objectives
and achieve peace of mind.
The professional’s perspective on managing
client wealth always places the client’s
best interests above all else.
What is an appropriate fit? One is where the
client’s perspective on managing client
wealth concurs with the professional’s
perspective.
Choosing the professional’s perspective
wisely is a prudent step.
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