A frustration we often hear from families is that wealth management firms all sound the same. No firm can be all things to all families. The sooner in the process firms and families realize this, the better off everyone will be. For families seeking a wealth advisor, the question isn’t who is the "best" firm, but rather who is the right firm. A non-traditional approach to due diligence can help identify a firm that might be right for them.

 

 

The primary asset of a wealth advisory firm is its employees. The stewardship provided by the firm to its employees can be a good indication of the potential of the firm to serve your family.

 

 

Ask to see a full organizational chart and speak with junior employees. Is what they say consistent with what senior staff members say?

 

 

One of the most revealing documents about the true essence of a firm is how it positions itself to prospective employees. Do the job descriptions match what was conveyed to the family about roles on the team? 

 

 

Responsible firms get to know prospective clients before agreeing to serve them. If the firm isn’t asking you thoughtful questions, it might not be very discriminating in client selection.

 

 

The compensation structure should reflect both the values and priorities of the firm and the needs of client families.

 

 

A firm that serves 400 clients and has a high client-to-employee ratio may provide a drastically different client experience than a firm that serves 50 clients and has a low client-to-employee ration.  

 

 

Every firm wants you to believe you fit the type of family they serve. But it isn’t enough to ask, "How many other families like me do you serve?” Families should ask specific questions about a firm’s current clients to determine if the client profile is a fit for their family.

 

 

Evaluate the firm’s team structure. Does it align with the stated values of the firm and your family?

 

 

What are the firm’s staff members like outside of the office?