{"id":117549,"date":"2023-10-02t11:56:42","date_gmt":"2023-10-02t15:56:42","guid":{"rendered":"\/\/www.g005e.com\/?p=117549"},"modified":"2024-08-27t17:01:06","modified_gmt":"2024-08-27t21:01:06","slug":"how-to-implement-collaborative-wealth-management","status":"publish","type":"post","link":"\/\/www.g005e.com\/2023\/10\/02\/how-to-implement-collaborative-wealth-management\/","title":{"rendered":"how to implement collaborative wealth management"},"content":{"rendered":"

\"closeup<\/strong><\/p>\n

this is an ongoing process, not one and done.<\/strong><\/p>\n

by anthony glomski
\n<\/i>your $5 million high-net-worth practice<\/em><\/a><\/p>\n

just like starting a business or building a practice, most of your successful clients know that nothing truly valuable is free or easy. same goes for their pursuit of financial freedom. it will take hard work, discipline and smart thinking to overcome and solve those challenges.<\/p>\n

more: <\/b>five challenges of liquidating a business<\/a>
\n\"goprocpa.com\"exclusively for pro members. <\/span><\/strong>log in here<\/a> or 2022世界杯足球排名 today<\/a>.<\/span><\/p><\/blockquote>\n

but what most type-a business owners, executives and professionals you work with don\u2019t realize is that they don\u2019t have to do it alone. there is plenty of help available to empower them to close the gap between where they are today and where they want to be down the road. chances are they\u2019re going to reach out to reach out to you (their cpa) first for guidance. will you be ready when they call?
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\nif you\u2019re familiar with a process called collaborative wealth management \u2013 many of our peers are not \u2013 then you\u2019ll be in excellent position to be your clients\u2019 go-to source of advice for the next chapter in their lives. collaborative wealth management is designed to help hard-charging entrepreneurs, executives and professionals get their financial lives on the right track \u2013 and stay there.<\/p>\n

while all kinds of financial services professionals like to call themselves \u201cwealth managers\u201d or \u201cwealth advisors,\u201d only a small fraction of those people really are. more on that in a minute.<\/p>\n

wealth management is about having all<\/strong> of your clients\u2019 financial challenges answered and their entire financial situations enhanced. collaborative<\/strong> wealth management goes beyond simply investment solutions. it addresses a wide variety of financial needs that clients have throughout the many, varied phases of their lives \u2013 including before and after they experience a liquidity event. true collaborative wealth management enables you to help clients organize and manage their money so that all the components of their financial life work together toward one purpose \u2013 achieving the goals they really want for themselves, their families, their community and the world at large.<\/p>\n

\u201cwealth management\u201d defined<\/strong><\/p>\n

just because someone says they provide wealth management services doesn\u2019t necessarily mean they can actually deliver them. ask 10 \u201cwealth managers\u201d to define wealth management and you\u2019re likely to get 10 different answers. and most definitions will be heavily focused on the standard investment management services that everyone else provides. in most cases, these standard services are not<\/strong> enough to make a meaningful difference in your client\u2019s total financial picture.<\/p>\n

true collaborative wealth management is designed to solve a full range of challenges that affluent entrepreneurs and other successful people face on an ongoing, long-term basis. most importantly, collaborative wealth management coordinates all aspects of a client\u2019s financial life that must be addressed if they are hoping to build a secure and meaningful future.<\/p>\n

collaborative wealth management accomplishes this in three ways:<\/p>\n

    \n
  1. using a collaborative process <\/strong>to gain a detailed understanding of your client\u2019s deepest values, goals and most important financial wants and needs. a collaborative approach enables you to help clients clarify what is most important to them and to craft a long-range and measurable wealth management plan that\u2019s designed to meet those needs and goals. the process is designed to foster an ongoing and dynamic relationship between you and your client to ensure that their needs continue to be met as their lives evolve over time.<\/li>\n
  2. going beyond investment basics to use customized solutions to fit a client\u2019s unique needs and goals. <\/strong>the range of interrelated financial services and tools might include, for example: investment management, advanced retirement planning, insurance, estate planning, business and exit planning, pre-liquidity planning, charitable gifting and wealth protection.<\/li>\n
  3. implementing these customized solutions in close consultation with your client\u2019s other professional advisors. <\/strong>wealth management enables you and your client to coordinate efforts closely with other trusted advisors (as desired) on an ongoing basis to identify your client\u2019s specific needs, and to design custom solutions to help meet those needs.<\/li>\n<\/ol>\n

    three key components of true collaborative wealth management<\/strong><\/p>\n

    wealth management consists of three key components, summed up in the following formula below that specifically addresses and solves the most pressing financial challenges faced by business owners and other successful people:<\/p>\n

    collaborative wealth management (cwm) = investment consulting (ic) + advanced planning (ap) + relationship management (rm)<\/strong><\/p><\/blockquote>\n

    let\u2019s take those components one at a time:<\/p>\n

    1. investment consulting (ic)<\/strong>.<\/strong> this component deals with the overarching goal shared by most successful entrepreneurs and their families: to make consistent, smart decisions about their finances. investment consulting aligns their financial assets to their goals, their return objectives, their time horizon and their risk tolerance. it is the foundation upon which a true collaborative wealth management solution<\/strong> is created.<\/p>\n

    through ic, you can address what is perhaps the most pressing specific financial issue faced by successful entrepreneurs \u2013 wealth preservation. they want to keep the money that they have worked hard to earn \u2013 and not have it unjustly taken.<\/p>\n

    2. advanced planning (ap). <\/strong>this component addresses a broad range of important financial needs in five key areas that go beyond<\/strong> simply investments:<\/p>\n

    a) mitigating taxes:<\/strong> enhancing wealth by, among other things, reducing the impact of taxes on a client\u2019s bottom line and decreasing their borrowing costs. as a cpa, this is right in your wheelhouse, but you may not have thought about tax mitigation within the broader concept of advanced planning.<\/p>\n

    b) transferring wealth:<\/strong> determining how a successful client\u2019s money can best support their children, grandchildren and other family members, as well as causes they care about \u2013 all while minimizing taxes paid to the government.<\/p>\n

    c) ensuring that assets are not unjustly taken:<\/strong> protecting the money successful clients have earned by safeguarding it from creditors, lawsuits, vengeful ex-spouses and other parties who could seek to possess their assets.<\/p>\n

    d) maximizing charitable giving and planning:<\/strong> helping successful clients leverage their money to magnify the impact they can have on their community and on society at large.<\/p>\n

    e) defining the next chapter of a successful client\u2019s life:<\/strong> this is about helping them formulate a plan for remaining relevant and engaged and having a true purpose in life.<\/p>\n

    these non-investment-related concerns are hugely important to your client\u2019s long-term financial success. yet they are often overlooked, or viewed (incorrectly) as secondary concerns \u2013 even by many financial professionals. research from ceg worldwide found that merely 6 percent of financial advisors (one out of 16) are helping clients with advanced planning issues beyond their investments. therefore, very few investors address these five ap concerns above in any systematic, comprehensive way.<\/p>\n

    many successful entrepreneurs are no longer working with the right advisors by the time they get to the planning stage for exiting their businesses. it doesn\u2019t mean those advisors aren\u2019t good at their jobs. it simply means they aren\u2019t familiar with \u2013 and don\u2019t offer \u2013 many of the advanced, top-tier wealth planning solutions that successful entrepreneurs need to achieve tremendous personal financial success going forward. where do you think you would fit in right now?<\/p>\n

    we\u2019ll talk more about these solutions shortly.<\/p>\n

    3. relationship management (rm) <\/strong>is the third and final component of the collaborative wealth management process. as a relationship manager, you need to start thinking like the quarterback of your<\/strong> client\u2019s financial life<\/strong>, not just as their tax preparer. to fulfill that role, you may have to get outside your comfort zone by assembling a team of highly specialized experts and oversee and coordinate their efforts all on your client\u2019s behalf.<\/p>\n

    this team of experts could include attorneys, business consultants, valuation and risk specialists, tax experts, and even financial therapists. no two client situations are the same. relationship management is a key part of building and maintaining a collaborative wealth management process. when done correctly, rm can provide you with a full range of expertise and \u201cbench strength\u201d that\u2019s built to address the complexities of a client\u2019s wealth. very, very few clients, no matter how smart and hardworking, have the bandwidth or knowhow to assemble an expert team on their own. that\u2019s where you come in as their personal cfo, or perhaps coo of a more robust solution like their virtual family office (vfo)<\/p>\n

    next, we will discuss the inner working of true wealth management process and the milestones you need to set for clients to get them on the path to financial freedom.<\/p>\n

    the (true) collaborative wealth management process: <\/em>a framework for success<\/h3>\n

    regardless of which acronym(s) you have in addition to your cpa credential, the only way to assure clients and prospective clients that you\u2019re a true wealth manager is to have a carefully defined wealth management process in place.<\/p>\n

    let\u2019s take a closer look at the process:
    \n<\/strong><\/p>\n

    proc\u00b7ess<\/p>\n

    noun<\/p>\n

    1. a series of actions or steps taken in order to achieve a particular end<\/p>\n

    if you take nothing else from this post, remember that having the right framework for collaborative wealth management is a prerequisite to success. the collaborative wealth management approach usually consists of a series of five meetings<\/strong>. each meeting will enable you to identify your client\u2019s unique and specific challenges and help you design and implement a range of tailored solutions. let\u2019s take a closer look at those five types of meetings and how they fit together in the process:<\/p>\n

    1. the mutual discovery meeting<\/strong>.<\/strong> the first step is to help your client accurately uncover and clearly measure what they want and need most out of life \u2013 today and in the future. without knowing what they want their money to accomplish, even the best financial strategies in the world won\u2019t be of much help to a highly successful person.<\/p>\n

    with that in mind, the initial mutual discovery meeting is centered on a detailed interview process that enables you to define your client\u2019s financial needs and goals, and to determine where they are in life today. this gives you the information needed to create a \u201ccomprehensive client profile.\u201d this profile is used to create solutions that are customized to each client\u2019s unique situation, and to lay the groundwork for working with other advisors (attorneys, risk specialists, planned giving specialists, exit planning consultants, etc.) who may be involved in the wealth management process.<\/p>\n

    because this part of the process is so critical to the success of your client relationship \u2013 and because few financial advisors ever do a formal mutual discovery meeting interview \u2013 we focus extra attention on this step.<\/p>\n

    2. the wealth planning meeting<\/strong>. <\/strong>this meeting is centered on two key elements:<\/p>\n