it’s an important part of wealth management.
by anthony glomski and russ alan prince
your $5-million high-net-worth practice
a percentage of accounting firms have chosen to be compensated by delivering financial products – specifically investment management and life insurance. these firms see wealth management as a way to deliver greater value to clients. there are also solid business reasons for the decision, such as the profitability of wealth management practices, including the potential for consistent revenues.
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the best wealth management practices – anywhere – tend to be all about developing a deep understanding of their clients’ goals and concerns. with these insights, wealth managers evaluate how they can use the range of financial strategies and products to help their clients’ achieve their agendas.
put another way … the best wealth management practices are not selling. instead, they are determining the ways they can add value and then delivering those solutions. this perspective and approach regularly results in more assets under management and writing significant life insurance policies. these results also happen with less client friction. according to jody padar of new vision cpa group, “a holistic approach to financial planning is key to meeting all of your clients’ needs, and that includes insurance.”
a considerable percentage of wealthy entrepreneurs, for instance, have much of their wealth tied up in their companies. investment management, save for retirement plans, is not an option. on the other hand, there are many ways wealth managers can be of real service to wealthy entrepreneurs by adroitly using life insurance. very often, life insurance is the surest and most cost-effective way for you to provide …
- for loved ones and the causes the entrepreneur cares about
- tax-free cash in the future so entrepreneurs can address personal needs or wants
- monies required to address selected critical business concerns; from ensuring the continuity of the business in case of death, to funding corporate benefits, to incentivizing key employees
one of the bigger obstacles for some accountants is that the mechanics of providing sophisticated life insurance solutions can be complicated and outside their areas of expertise. there are several ways to solve this conundrum, including acquiring the expertise and housing it in the accounting firm or setting up joint ventures with high-caliber life insurance specialists.
many accounting firms’ wealth management practices miss out on better serving their wealthy clients and fail to generate more revenues for their firm by not putting in the necessary resources and effort to provide high-quality life insurance solutions. this is a problem that can be easily solved.