Am I A Wealth Manager Question Confronts Columnist
Last summer one of the more intriguing messages I received at the office came from a very unexpected source. Five Star Professional, an independent market research company in association with Philadelphia Magazine, had developed a listing of “best in client satisfaction” wealth managers for the Delaware Valley and found my name to be one for planned publication in the list in the November edition of that publication. The company reported having surveyed over 100,000 high wealth consumers and 7,400 finance service professionals. Survey participants, they advised us, were asked to evaluate a selection of wealth managers, individuals who either prepare or implement a client’s financial planning or both. A panel of local financial service industry experts reviewed the final selection of candidates whose names included attorneys, bankers, investment advisors and others and, among the group, less than 7% were chosen and I was one.
Criteria included customer service, integrity, knowledge and expertise, communication, value for fee charged, meeting of financial objectives, post-sale service, quality of recommendations, and overall satisfaction.
In thinking back, this was very pleasantly surprising information for a small office such as mine. The list, I came to learn, included senior attorneys and advisors from large established Philadelphia law firms and prominent investment management firms. Firms represented included names like Dilworth, Paxson, LLP and Morgan Stanley Smith Barney as well as some smaller offices that I respect very highly.
The somewhat troubling question that came to my mind on receiving the telephone call from a Five Star Professional representative and the one that ultimately caused me not to accept the offer was “Am I a ‘wealth manager’” in the sense that most people would consider the term.
“First of all,” I noted to the representative…”You do not manage investment portfolios.” He completed my sentence. “That is correct. I do not place investments.” In fact, I do not sell annuities, long term care insurance, or any product other than advice and the documentation, plans, estate documents, and other papers that advance and implement the advice.
In the work that our office handles as our first love, that is how to stretch assets and arrive at safe, appropriate living arrangements so that individuals and families can cope with long term care, we do confront finances every day and arrive at practical solutions. We call banks, insurance companies, and brokerage firms as well as nursing homes, hospitals, doctor’s offices and assisted living facilities. We calculate remaining surrender periods for existing annuities, tell clients ways to save taxes on health care deductions, and prioritize liquidation of assets as needed for care. We file applications for benefits like Medicaid and backup on Veterans Aid & Attendance applications. We consult as to whether adult day care, respite care, assisted living, hospice, or skilled care or continuing care retirement communities are the proper solution in the individual case both for the type of care and affordability.
We tell people, if they get sick what their options are and what they can do. Still, this novel twist that I could be considered a “wealth manager” struck me as losing focus on our primary objective which is not just to preserve wealth but to preserve it for a specific reason, often for care, and, if there is enough for care, then for inheritance.
Early on in my elder law practice, I showed this by drawing three circles nesting inside each other. The core inner circle was “legal-financial.” Without getting the financial in order and the corresponding legal documents and arrangements, we would not know what assets we had at hand. “You can want to live out your days in a chateau in France,” I would explain, “but if you do not have the funds to do it and the corresponding legal arrangements you cannot arrive at that goal.” The next and middle circle was “living arrangements,” that is, where, realistically, do you want to live now that you know what resources you have. Finally, there was the “quality of life” circle. It could be considered the circle that enhances life quality. It was last not because it was least important but because the other issues needed to be in place to resolve this last piece.
Although I decided not to include my name as a “wealth manager,” I did want to thank those who voted for me, whether clients or financial service advisors. Their trust is much appreciated and a designation that I hope to live up to while pursuing our office’s life care planning objectives.
About the Author Janet Colliton
Esquire, Colliton Law Associates, P.C. Janet Colliton has practiced law for over 38 years, 37 of them in Chester County, Pennsylvania, a suburb of Philadelphia. Her practice, Colliton Law Associates, PC, is limited to elder law, Medicaid, including advice, applications and appeals, and other benefits planning including Veterans benefits, life care and special needs planning, guardianships, retirement, and estate planning and administration.