Advising High Net Worth Investors

July 9, 2018

Communication is key between investment clients and their advisors. High net worth investors tend to not disclose all of their finances to their investment advisors, which can prevent the advisor from forming a clear strategy to creating wealth for the client.


High net worth households are those with $5 million or more in investable assets and are mostly male, white, and over 60 years old. Roughly 40% operate their own businesses. Most say they are comfortable with money and feel satisfied with their advisors.


Successful people choose to work with those they view as competent and will evaluate whether their advisor is doing a good job. In this case, it is important for advisor and clients to have clear and regularly scheduled communication to ensure the advisor is addressing issues and concerns that the client considers important. The advisor should consider asking probing question; for example, “Can you think of times in the past two years where you wondered about choices I made?” This can help the client consider specific feedback and facilitate an open discussion on how the advisor can best help the client understand and feel comfortable about their investing strategy.


Many high net worth investors like to take an active role in their investment accounts. Some investors like to experiment with different financial concepts and investments in order to stay sharp after retirement. If a client wants to take a more active role, the investment advisor should consider ways to coach the client in how to properly measure returns and risks.


Regardless of how involved the investor would like to be in their asset management, it is important for their financial advisor to communicate clearly to their client and at regularly expected intervals.


We at TABER Asset Management prioritize client communication and always welcome questions and discussion of your investment strategy. We are a fiduciary and investment advisory firm located in Des Moines, IA serving clients across the U.S. Please contact us at 515-557-1860 or invest@taberasset.com to learn how we can actively contribute to your financial success.


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