REAL Wealth Management

Difficult times recently. My mother recently passed away under a cloud of issues and I just finished my most recent book, “The 401(k)/403(b) Investment Manual.”  Then a prospective client contacted me with regard to his ongoing problems with a “wealth manager.”

The “wealth manager” charade is something that the regulators need to address. All God’s children simply are not “wealth managers.” A study by CEG Worldwide reported that less than 10 percent of those holding themselves out as “wealth managers” actually qualified as wealth managers, with the remaining 90 percent being nothing more than product pushers. Just to make myself clear, product is not inherently bad. The problem is when the only thing the “wealth manager” has to contribute it selling product, with no knowledge of or no provision of the services involved in the other aspects of comprehensive wealth management.

True wealth management is a process, not a product.  True wealth management is more than just asset allocation or portfolio optimization.  In my opinion, true wealth management involves a number of issues, most notably accumulation, preservation and distribution of wealth. In too many cases you simply have product pushers addressing accumulation, with no services related to the preservation and distribution aspects of wealth management.

To make up for lost time, I will write a post each week over the next four weeks, each week addressing a separate stage of the wealth management process.  In the fourth installment, I will discuss the proper way to combine each stage into a comprehensive wealth management plan.

FYI – I have had several readers ask me why I do not allow comments and questions on my blog.  The answer is simply that I do not have the time to deal with all the spam and vulgar comments that some were continually posting.  At one point I was averaging over 23-30 ads for Ugg boots alone on every post I wrote.  WordPress requires its user to actively review and manage its sites. This is an ongoing problem for all bloggers. Unfortunately, in most cases, the only effective resolution is to deny any comments. I actually enjoyed the constructive comments and feedback, but in these cases the few ruin it for the majority.

Have a great weekend!

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