If anything happens to you, your family has someone to consult.

If you weren’t around, what would happen to your investments? In many families, one person handles investment decisions, and spouses or children have little comprehension of what happens each week, month, or year with a portfolio.

In an emergency, this lack of knowledge can become financially paralyzing. Just as small business owners risk problems by “keeping it all in their heads,” families risk problems when only one person understands investments.

A trusted relationship with a financial professional can be so vital. If the primary individual handling investment and portfolio management responsibilities in a family passes away, the family has a professional to consult – not a stranger they have to explain their priorities to at length, but someone who has built a bond with mom or dad and perhaps their adult children.    

You want a professional who must meet a fiduciary standard. Look for a financial professional who upholds a fiduciary standard. Professionals who build their businesses on a fiduciary standard tend to work on a fee basis or entirely for fees. Other financial services industry professionals may earn much of their compensation from commissions linked to trades or product sales.

Commission-based financial professionals don’t necessarily have to abide by a fiduciary standard. Sometimes, only a suitability standard must be met. The difference may seem minor, but it really isn’t. The suitability standard, which hails back to the days of cold-calling stockbrokers, dictates that you should recommend investments that are “suitable” to a client.  In contrast, a financial professional working by a fiduciary standard always has an ethical requirement to act in a client’s best interest and to recommend investments or products that clearly correspond to that best interest. The client comes first.

You want a professional who looks out for you. Financial professionals earn trust through their character, ability, and candor. In handling portfolios for myriad clients, they learn to watch for certain concerns and to be aware of certain issues that may get in the way of wealth building or wealth retention.  

Many investors have built impressive and varied portfolios but lack long-term wealth management strategies. Money has been made, but little attention may have been given to tax efficiency or risk exposure. 

As you near retirement age, playing defense becomes more and more important. A trusted financial professional could help you determine a risk and tax management approach with the potential to preserve your portfolio assets and your estate. 

Your family will want nothing less. With a skilled financial professional around to act as a “co-pilot” for your portfolio, your loved ones will have someone to contact should the unexpected happen. When you have a professional who can step up for you, today and tomorrow, you have a financial professional whose service and guidance can potentially add value to your financial life.  

If you’re the family member in charge of investments and crucial financial matters, don’t let that knowledge disappear at your passing. A will or a trust can transfer assets, but not the acumen by which they have been accumulated. A relationship with a trusted financial professional may help to convey it to others.

  

Ken Weise, an LPL Financial Advisor, provided this article. He can be reached at 707-584-6690. Ken Weise is a registered representative with, and securities offered through LPL Financial, member FINRA/SIPC.  Investment advice offered through Strategic Wealth Advisors Group, LLC., a registered investment advisor.  Sonoma County Wealth Advisors and Strategic Wealth Advisors Group are separate entities from LPL Financial.  The opinions in the material are for information purposes only.

(0) comments

Welcome to the discussion.

Keep it Clean. Please avoid obscene, vulgar, lewd, racist or sexually-oriented language.
PLEASE TURN OFF YOUR CAPS LOCK.
Don't Threaten. Threats of harming another person will not be tolerated.
Be Truthful. Don't knowingly lie about anyone or anything.
Be Nice. No racism, sexism or any sort of -ism that is degrading to another person.
Be Proactive. Use the 'Report' link on each comment to let us know of abusive posts.
Share with Us. We'd love to hear eyewitness accounts, the history behind an article.