By: Michael Smith

The WealthCurve™ is a conceptual representation of one’s wealth accumulation and management over time. It not only symbolizes the growth of assets but also the increasing complexity and sophistication required in managing such wealth effectively. At the heart of navigating this curve successfully is the partnership with a wealth advisor, a pivotal figure whose knowledge and guidance can significantly influence the trajectory of one’s financial future. 

As wealth grows, especially when managing investment portfolios of at least $10 million, the demands on this advisory relationship intensify. It becomes crucial to continually reassess whether your wealth management strategy and your advisor’s capabilities are in alignment with your evolving financial landscape. 

Recognizing the signs that you may have outgrown your wealth advisor is a natural and essential step in ensuring that your financial strategies are optimized for your current and future needs. Senior Portfolio Manager & Senior Wealth Advisor Thane Stenner of Stenner Wealth Partners+ of CG Wealth Management Canada discusses the signs that you’ve outgrown your wealth advisor and the proactive steps to take in reassessing your wealth management approach.

Understanding Your Current Position on the WealthCurve™

Understanding your current position on the WealthCurve™ is fundamental to effective wealth management. 

The WealthCurve™ represents the trajectory of your financial journey, illustrating not just the growth of your assets over time but also the evolving complexity of managing those assets,” says Thane Stenner. “As your wealth increases, so does the necessity for more sophisticated and strategic wealth management approaches.” 

Aligning your wealth management strategies with your specific stage on the WealthCurve™ ensures that your financial actions are both appropriate and advantageous for your current financial landscape. As you ascend the WealthCurve™, it’s possible that your current wealth management strategies may no longer suffice. 

Signs such as a lack of personalized investment advice, infrequent adjustments to your financial plan, or a feeling that your financial goals are no longer the focal point of your strategy can all indicate that your wealth management is not keeping pace with your needs. Recognizing these signals early is crucial in making the necessary adjustments to continue your successful financial journey.

Signs You Might Have Outgrown Your Wealth Advisor

As your wealth grows and your financial ecosystem becomes more complex, the relationship with your wealth advisor should evolve accordingly. There are signs that may indicate you’ve outgrown your current wealth advisor, and a significant red flag is the lack of customized strategies. Personalized investment strategies become increasingly important as your portfolio expands, requiring tailored advice to meet specific financial goals and risk tolerance.

Notes Stenner, “A key indicator that it’s time to reconsider your wealth strategies is limited knowledge on the part of your wealth advisor, whose experience should match the sophistication of your financial needs.” 

As you climb the WealthCurve™, the complexity of your financial situation may surpass your advisor’s acumen, signaling a need for a change. Additionally, inadequate access to advanced tools and resources can hinder the effective management of substantial wealth. Today’s wealth management demands cutting-edge technology and resources for optimal portfolio analysis and management.

Effective communication and reporting are paramount. Transparent, frequent, and detailed updates on your investments and their performance are essential for maintaining confidence in your wealth management strategy. If these elements are lacking, it may be time to reassess your partnership with your wealth advisor.

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The Impact of Not Reassessing Your Wealth Management Strategy

Neglecting to reassess your wealth management strategy as your financial situation evolves can lead to significant repercussions. Remaining with a wealth advisor who no longer meets your needs can expose you to potential risks and result in missed opportunities. 

“As your wealth grows, so does the complexity of managing it effectively. An advisor who lacks the necessary knowledge or resources might not be able to navigate this complexity, leading to suboptimal investment decisions or overlooked strategies that could otherwise enhance your portfolio’s performance,” says Stenner.

The cost of complacency extends beyond financial losses. It encompasses missed opportunities for wealth expansion and optimization, impacting your long-term financial growth and the achievement of your goals. Innovative investment opportunities and tax optimization strategies that are not utilized can represent a significant loss over time. 

An advisor not aligned with your current financial reality may not fully support or understand your evolving aspirations, hindering your ability to make informed, forward-looking decisions. Recognizing and acting upon the need to reassess your wealth management strategy is crucial to safeguarding and nurturing your financial future.

How to Reassess and What to Look for in a New Wealth Advisor

Reassessing your wealth management and selecting a new wealth advisor requires careful consideration and strategic planning. Begin by evaluating your current wealth management approach. Key factors to review include the alignment of your financial strategies with your goals, the customization of your investment portfolio, the level of knowledge your advisor demonstrates, and the quality of communication and reporting you receive. Reflect on whether your current advisor is proactive in adjusting strategies to meet your evolving financial landscape.

When searching for a new wealth advisor, prioritize finding a match that aligns with your financial objectives and personal values. Look for advisors with a proven track record of managing wealth at your level or higher, offering personalized strategies and possessing deep knowledge in areas relevant to your financial complexity. Ensure they leverage advanced tools and resources and value transparent communication.

Transitioning to a new advisor smoothly entails clear communication about your financial goals and expectations. It also requires meticulous transfer of financial documents and information. Select an advisor who demonstrates a structured onboarding process, minimizing disruption to your financial strategy and ensuring a seamless transition that upholds the integrity of your financial future.

The Importance of Proper Wealth Management to Your Future

The landscape of wealth management is set to become even more nuanced and complex. Advancements in technology and finance will introduce new opportunities and challenges in managing substantial wealth. This evolving landscape underscores the importance of having a wealth advisor who not only understands the current financial climate but is also forward-thinking and adaptable to future trends and changes. 

As individuals continue to navigate their journey along the WealthCurve™, the relationship with their wealth advisor should be dynamic, evolving to meet new financial realities and leveraging innovative strategies to safeguard and grow wealth. The process of reassessing one’s wealth management strategy is not a one-time event but a continuous practice. It reflects a commitment to ensuring that one’s financial aspirations and wealth management are in perfect sync. 

Thane Stenner is cross-border licensed in the USA and Canada via FINRA and IIROC. Previously, he acted as a Managing Director, International Client Advisor, Institutional Consulting Director, and Alternative Investments Director at Morgan Stanley Wealth Management where he led his team in managing portfolios for ultra-high net worth clients.

He graduated cum laude from Arizona State University and attended Harvard Business School’s Executive Program. Stenner’s unique knowledge has been featured across several business news outlets, including the Globe & Mail, Canadian Family Offices & BNN Bloomberg. 

Published by: Holy Minoza