When Wealth Management Met 2008: Now What?

Abstract

The impact of the financial collapse of 2008 and early 2009 continues to reverberate through the wealth management industry. Much of what we have told our clients for years to be the keys to long-term investment success seemed to fail us, right when we needed them most. Investors questioned not only our profession but also the quality of our advice. But, perhaps counterintuitively, disruptive markets frequently are the best times for advisors to grow their practices—if they embrace the new realities of what clients want and expect from them. This article discusses appropriate best practices for wealth management firms, post-2008. It segments the discussion by addressing three specific questions: what has not changed, what has changed, and what has really changed. Advisors who successfully deliver differentiated and tax-effective investment portfolios, who move beyond sharing data and information to provide their clients with wisdom and knowledge, and who can rebuild client trust in a post-Madoff world will be the ones best situated to capture the massive client and asset migration expected to take place over the next several years.