keep these promises to your clients no matter what.
by russ alan prince
your $5 million high-net-worth practice
there are four unquestionable core tenets of an accounting firm’s elite wealth management practice.
more: why you need a team of experts | why a virtual family office? why now? | is your client’s umbrella big enough? | your client’s instincts are wrong | preserving wealth is a different mindset | three approaches to investment consulting
exclusively for pro members. log in here or 2022世界杯足球排名 today.
it’s not debatable. and it’s not negotiable.
think of the four rules as a professional oath for those who strive to have successful elite wealth management practices.
core principle #1: the primary goal of an elite wealth management practice is to help optimize the financial lives of clients
the goal of your elite wealth management practice is not to generate more revenues for your accounting firm. that does not mean your accounting firm’s elite wealth management practice will not prove exceedingly profitable, because it will. more importantly, optimizing clients’ financial lives is the primary objective with elite wealth management. the significant profits that your accounting firm will accrue are a byproduct of delivering exceptional value to clients. the revenues your elite wealth management practice will produce take three forms:
- direct revenues by providing financial services and products,
- indirect revenues by finding opportunities for other accounting firm parties to add value and
- a steady stream of new “ideal” clients.
core principle #2: elite wealth management is all about delivering exceptional value
while most wealth managers talk about delivering value, in reality, they are often more absorbed in selling financial strategies and products. from where we stand, there is a monumental difference between selling financial strategies and products and delivering value. many wealth managers and other professionals do not recognize the difference.
according to homer smith, managing founder of konvergent wealth partners and co-author of optimizing the financial lives of clients: harness the power of an accounting firm’s elite wealth management practice, “not selling will prove to be one of the most consistently powerful advantages of any accounting firm’s elite wealth management practice. the ability to understand the complexities of clients’ worlds and use financial strategies and products to help them optimize their financial lives enables an accounting firm’s elite wealth management practice to add value in ways that make an enormous difference.”
core principle #3: the accountant is always central when working with clients
the success of your accounting firm is a function of the value your accountants provide clients and the quality of the relationships your accountants have with those clients. because accountants have a central place in their client’s financial lives, it makes perfect sense to maintain – if not expand – these trusted relationships.
“always, the client is the accountant’s client,” smith said. “the accountant best understands the client and has built a solid relationship based on delivering value. one of the aims of elite wealth management is to enhance these relationships further, often leading to more business and referrals to new high-quality clients. this is only possible as long as the accountants stay involved.”
to be clear, when the accountant is involved throughout, there is a much, much higher probability of:
• clients optimizing their financial lives;
• clients being satisfied with the process and outcomes;
• business getting done, including producing additional accounting firm revenues; and
• new high-quality clients being referred.
according to anthony glomski, principal and founder of ag asset advisory family office and co-author of your $5 million high-net-worth practice: guidelines for sourcing and working with the wealthy during the covid-19 crisis and beyond, “based on a great deal of success working with accounting firms to help clients optimize their financial lives, we can say it does not take much effort and time for accountants to be involved, thereby ensuring clients are getting superior results. regarding elite wealth management, accountants regularly have an oversight role that involves staying close to clients to confirm everything is working well. still, it entails effort and time, but all outcomes are worth it.”
core principle #4: elite wealth management is woven into the fabric of the accounting firm
elite wealth management is not a standalone practice, nor is it ancillary. to do the best job possible for clients and get the most benefits for your accounting firm, elite wealth management is integrated into the thinking and philosophy of the accounting firm. when elite wealth management is part of the fabric of your accounting firm, all the advantages we have addressed are possible. this requires that your accounting firm’s wealth management practice achieve elite status. it also requires the accountants to embrace the other three core principles completely.
if you think of your accounting firm’s wealth management practice as a subsidiary or something of the sort, chances are you will get some positive results. still, the odds are the results will be limited, if not nominal.
in contrast, if you want to optimize the financial lives of your accounting firm’s clients and – because it will then happen – make a major positive difference in the revenues and growth of your accounting firm, elite wealth management needs to be blended into the composite solution set your accounting firm provides.