#30 WEALTH MANAGEMENT Buyer Checklist You Need To Know Before You Spend Your Money. 60 Buyer-Beware Intelligence Points.

1. “Wealth management” can mean very different things from one firm to another.
2. Fees can exist at multiple levels.
3. Asset-management fees are not necessarily the only fees.
4. Advisory fees may be percentage-based.
5. Product commissions may create conflicts.
6. Certain products can carry embedded expenses.
7. Portfolio performance should be evaluated net of all relevant costs.
8. A high-performing portfolio may simply have taken more risk.
9. Benchmark selection matters.
10. Risk tolerance should not be confused with risk capacity.
11. Liquidity needs matter.
12. Concentration can quietly build over time.
13. Tax consequences matter.
14. Retirement objectives matter.
15. Estate planning may require coordination with other professionals.
16. Insurance may be recommended for legitimate reasons—but costs and incentives should be understood.
17. Alternative investments can introduce illiquidity and complexity.
18. Proprietary products deserve extra scrutiny.
19. Conflicts of interest should be disclosed and understood.
20. “Personalized” does not necessarily mean comprehensive.
21. A famous firm does not automatically mean a suitable adviser.
22. Past investment performance does not guarantee future performance.
23. Changing advisers can create transaction and tax consequences.
24. You should know exactly who has custody of your assets.
25. The most important question may be “How are you compensated?”

B. PREMIUM BUYER CHECKLIST

ADVISER

☐ Adviser identity verified
☐ Firm identity verified
☐ Qualifications reviewed
☐ Relevant registration/licensing checked for your jurisdiction
☐ Disciplinary/background information reviewed where applicable
☐ Experience with similar clients confirmed

SERVICES

☐ Investment management
☐ Retirement planning
☐ Tax coordination
☐ Estate-planning coordination
☐ Insurance planning
☐ Cash-flow planning
☐ Business/exit planning
☐ Risk management

Clearly distinguish what the adviser actually provides from what is merely available through partners or referrals.

COMPENSATION

☐ Advisory fee
☐ Asset-management fee
☐ Product commissions
☐ Transaction costs
☐ Fund expenses
☐ Custody fees
☐ Planning fees
☐ Performance-based fees, if any
☐ Other administrative fees

PORTFOLIO

☐ Investment philosophy documented
☐ Risk profile documented
☐ Benchmark identified
☐ Asset allocation explained
☐ Concentration reviewed
☐ Liquidity needs incorporated
☐ Tax implications considered
☐ Alternative investments explained

CONFLICTS

Ask:

☐ Do you receive commissions?
☐ Do you receive compensation from third parties?
☐ Do you recommend proprietary products?
☐ Do you have minimum account requirements?
☐ Are there products you cannot recommend?
☐ Who is the custodian?
☐ How are referrals compensated?

REPORTING

☐ Statements explained
☐ Performance reporting understood
☐ Fees visible
☐ Account access verified
☐ Custody arrangements understood
☐ Complaint/escalation procedure known

FINAL COST TEST

Calculate:

Advisory Fees + Product Fees + Fund Expenses + Transaction Costs + Other Charges

Then compare that total against the expected benefit of the service.

FINAL QUESTION

If I could see every dollar this relationship generates for everyone involved, would I still choose it?