How to Choose Your Wealth Management Advisor as an Expat
We all invest our money in a lot of things. However, we cannot control how these investments grow. Nevertheless, that does not mean that we just invest our hard earned money and let it go unsupervised. We need to manage our wealth in the right way.
Unfortunately, we may not be able to do so because of our tight schedules and what not. That’s why we have wealth management professionals to help us out with this important task.
But, how well our wealth is managed depends a lot on how good the wealth management advisor is. Oscar Winson’s David Reed lists out a set of important factors that you need to look at before you hire a wealth management advisor, especially if you are an expat in China.
Billing and charges
David Reed considers this to be the most important question to ask while hiring a wealth management advisor. The point is to make sure that your long-term returns are worth it. Therefore, advisors who work on a commission basis need to be avoided. These types of advisors usually have the task of forcing you to buy a life insurance policy or a mutual fund and they’re getting a percentage of the revenue for doing so. The problem is that these products are not great in terms of savings.
What you need is a fee-based wealth management advisor. They charge a fixed fee for their services, either monthly or annually. Above all, they tend to be better in terms of providing valuable wealth management advice. This is because their fees depend on how well your investments perform.
However, make sure you get a breakdown of the fees involved. If the fees involved go beyond 1.5% per year, then the advisor might be charging a bit too much.
An obvious concern should be the educational background of your advisor. Do a little research about what qualifications a wealth management advisor in China must have. Find out if your advisor is qualified accordingly. Also, make sure that they possess the necessary certifications. Many wealth management advisors in China lie about their educational qualifications. The certifications can provide some sort of guarantee in case you can’t get information about their education.
Take a look at the advisor’s portfolio and see how they have performed in the past. Do they have a good list of clients? Ask them to provide you with proof such as audited statements or client references. If you get client references, make sure you follow up on it. A good advisor will, generally, have good feedback from his/her clients.