If you are working with a wealth management company, you need to make sure that they have the proper training and experience to work with your wealth. You also need to make sure that they have the right priorities in line. Here are three questions you can ask your wealth management company that will give you insight into how they work and think.

Do Your Service Fees Compound?

You need to make sure that you understand how the service fees work before you enter into a relationship with a wealth management company. Even if you are under working with a wealth management company, it is important to clarify how the service fees work.

When service fees compound, you end up paying more over time. The fee structure should be explained in clear language, and should not exponentially increase over time. Make sure you understand exactly how the fees work.

Do You Work With More Than Just Investment Portfolios?

Some wealth management companies only focus their efforts on the items inside of your portfolio such as your holdings and stocks. However, if you really want to have all of your wealth managed, you need to find a management company that looks at the entire picture.

You need a management company that will provide you with advice about what types of assets you should buy. You also need a company that will help you make the right financial choices for your particular lifestyle and provide you with solid advice about topics such as homeownership and college funds. They should be able to focus on your entire financial life, and not just your stock holdings. This will help you reach a balanced financial position.

Are Your Employees Or You A Registered Investment Advisor?

A registered investment advisor, or RIA, is someone who has achieved a certain level of certification and is bound by law to act and uphold the fiduciary standard. That means that they are supposed to follow guidelines that ensure that each and every investment they make for you is first compared with other alternatives in the industry before an investment decision is made.

Although this does not mean that they will make the perfect decision every time, it does ensure that they will take the time to compare and look at all options for all of your investments.

If you are interviewing private wealth management companies, make sure that you ask them the three questions listed above in order to get a real feel for how they work and how they will help you manage all of your assets and protect your financial well being.

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