The rich are getting richer; and the very rich are getting very much richer. In fact, the amount of private wealth is greater than ever before and all indications are that this trend is not only going to continue but intensify. Those professionals who are working with the wealthy will benefit because of more potential clients, significantly wealthier clients, and clients who are willing to pay – and pay well – for value.
For wealth managers, the considerable business opportunities can easily translate into substantial personal fortunes. The catch is that not all wealth managers have the technical and interpersonal skills to work effectively with the rich, and this situation is even more evident when it comes to working with the super-rich.
The ability of wealth managers to deliver state-of-the-art financial solutions will become a necessity to be considered and effective when it comes to the wealthy. For example, proficiency with private placement life insurance is slowly becoming a requirement. “A critical benefit of private placement life insurance is eliminating the tax drag on an investment portfolio,” says Peter Sasaki, managing member of CGS Financial Solutions, a leading private placement life insurance administrative platform. “Even in the case of tax efficient portfolios, looking long-term, private placement life insurance is extremely attractive. Also, the very wealthy find the asset protection possibilities highly appealing.”
Another critical differentiator between wealth managers fast-tracking to professional success and personal wealth, and the morass of other advisors is that accomplished wealth managers are “thought leaders.” According to John Bowen, founder of CEG Advantage, “With all the competition for assets from affluent investors, wealth managers need to strategically ensure they are top of mind with clients, prospects, and centers of influence. There are different ways to make this happen. One of the most powerful approaches is to be recognized as thought leaders by a select number of people who can help them dramatically grow their businesses. For wealth managers, there are two ways to position themselves as thought leaders. One way – and the harder way – is to regularly create and distribute new high-level content. A much easier solution is to purposefully curate and distribute exceptional high-level content.”
For those wealth managers who take the steps, such as being able to deliver state-of-the-art financial solutions and are seen as thought leaders, a tremendous amount of business can be done with the wealthy. By building a successful practice with the wealthy, these wealth managers can very likely create their own personal fortunes.