Comment of the Week goes to....

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This week Wealth Professional is going offshore, as a visitor from the US joined the debate and took out the comment of the week.

There’s a common theme emerging on WP, as advisers try to shift the focus away from being on returns. Last Friday Centric Wealth explained the different ways that advisers could protect their clients’ assets.

Ike Devji seemed to agree with the article and wanted to share his thoughts from the US:

“This is important for a variety of reasons. I have taught financial advisors about asset protection all over the U.S. for ten years and try to make the following issues clear:

  1. You have a fiduciary duty to be at least marginally informed about asset protection and suggest clients address it with experienced counsel in the same way you’d ask about them having a good accountant and estate plan;
  2. Protecting your client’s [sic] money protects your business as well. You can’t charge fees on money they’ve lost. Over the last five years literally billions in client assets have left advisory accounts due to third party exposure;
  3. HNW clients are more concerned with loss than growth. Knowing what they are concerned about and leading with solutions over “sales” will help you better serve, attract and retain the right clients.

Finally, have real resources for them. Referring them to your buddy the old-timey estate planner is rarely sufficient.”

Let’s continue the international dialogue, for as Rudyard Kipling says, “Words are, of course, the most powerful drug used by mankind”.