Top 10 wealth management mistakes

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: equities and the rest in insurance. It is not a product of a software program, but a series of iterations that result in asset allocation, which is designed to meet your life goals.

Professional wealth management service providers go a long way in understanding you and your needs, your lifestyle and your family. They then come up with several plans that could enable you to grow and distribute your wealth. It is better to involve professionals here.

2. The right partner

By an extension of the previous mistake, often high net worth individuals tend to pick up more than one service provider. Vikas Agnihotri, CEO, Religare Macquarie Private Wealth says, “In India, clients provide only a portion of their portfolio to one wealth manager, hence the advice is suitable for only a part of the overall client portfolio. This is in contrast to international practice where investors engage with one wealth manager to provide holistic advice on their entire portfolio. It not only allows disciplined approach to investments but also helps clients achieve their investment objectives.”

And when you express your desire to chose a wealth management partner, there will be many who will line up for what is known as the ‘beauty pageant’ and will present their abilities to manage your wealth. Here, it can be said that it is better to avoid service providers who base their income on commissions from financial product vendors. These are advisors who, often enough, would peddle products based on the commissions that they receive and not the efficacy of the product itself and its match with your life goals.

While most financial planners and wealth managers would be good and competent, one can never be sure of their genuineness. Hence, doing a background check before deciding on someone is a must, for there are still those unscrupulous advisors lurking around, only waiting to catch their next prey.

Yes, the process of choosing a wealth manager should be even more carefully done, then choosing someone to employ. Hence, references are more important here, and, checking up with them equally so. It is, after all, your entire wealth and life you are going to be discussing with this person.