Posts Tagged ‘financial advisor’

Ultrahigh-Net-Worth Families Reflect On The Recession

Monday, October 5th, 2009

A gathering of advisors to high-net-worth families reveals ongoing insecurity about more than just the market…

  • Reeling from the losses of the recession, wealthy families are expressing concern about what their changing financial positions will do to their family dynamics.
  • The success of family dynasties depends largely on each member managing the shared assets with a similar set of values and goals. But the sudden stock market crash brought to light hidden frictions and diverging interests in many families.
  • One particular point of anxiety is in commercial real estate. With the market so volatile and typical investors suddenly going through kind of financial-existential crisis, the old practice of buying up cheap real estate during down times just isn’t happening. What that means for the rest of the world remains to be seen.

Facts & Figures

  • According to a survey of 108 “ultrahigh-net-worth families,” 45% said their first concern these days is the economy and financial markets.
  • Other top concerns included government intervention in the markets and a commercial real estate crash.

Best Quote

“These families have recognized that autopilot is not a good strategy.” – Amelia Renkert-Thomas, Lawyer

A Money Manager is…

Monday, August 10th, 2009

A money manager is a finance professional who advises his or her clients on where to invest their money and manages their portfolio for them.

An Investment Adviser is…

Monday, August 10th, 2009

An investment adviser is someone who gives advice about securities to clients. In other words, someone who gets paid to give advice on stocks, bonds, mutual funds or other financial instruments are investment advisers.

A Financial Advisor is…

Tuesday, July 7th, 2009

A financial advisor is an individual who offers clients financial advice in exchange for a fee or commission. They help and advise clients on their portfolio, estate planning, and understanding of the market.

Prozac, Dr. Phil, And Your Financial Advisor…

Thursday, July 2nd, 2009
Financial advisers are experimenting with new ways to talk to their clients. Some have even started running pseudo-therapy sessions.
  • Financial advisers and their clients have always talked intimately about money, but the financial crisis has inspired a new kind of dialogue: the clients’ personal issues.
  • On the one hand, this therapy-like approach elevates the goals of financial planning from purely monetary to lifestyle and values. On the other hand, there’s a certain danger in trusting one person too much (e.g. Bernie Madoff).
  • Rick Campell is an investor with exposure to this new style of financial planning. In one of his sessions for instance, he opened up about everything from the number of kids he wants, to his parents’ divorce, and even his dad’s death.

Facts & Figures

  • The advisors at Merrill Lynch have started doing “values clarification” exercises and daylong retreats with their clients.
  • Wells Fargo hired psychologists and “family dynamics” counselors to help address their wealthiest clients’ personal issues.

Best Quote

“Are we going to get Prozac at the end of this?”  –Rick Campbell, investor