Choosing a private wealth management firm is an important business owner financial planning decision. Your business may represent a large share of your net worth, while also providing income and supporting your family’s future plans. An investment proposal should reflect those connections.
Start with a short brief describing your goals, expected cash needs, ownership structure and any transition you are considering. Give each prospective firm the same information. Then compare the scope of its advice, the evidence behind its recommendations and who will be responsible for the work.
Understand the full cost
Ask for a written estimate of the total annual cost in dollars and as a percentage of the assets involved, based on the same portfolio value for every proposal. Identify advisory fees, underlying investment costs and any separate planning charges. Ask about trading, custody, foreign exchange and transfer costs where relevant, and whether applicable taxes are included.
Clarify which services the fee covers and what would trigger additional charges. If the amount varies with asset levels or the investments selected, request a worked example. Ask how the firm and its advisors are compensated and whether referral arrangements or product choices affect that compensation. Keep the fee schedule beside the service description so you can assess what you would receive for the cost.
Examine estate and succession capability
Business succession and estate planning raise connected questions. Who might own or run the business next? How could family members’ priorities differ? What would happen if you could no longer make decisions? Ask how a prospective wealth manager would organize these conversations and work with your accountant and lawyer.
For complex estates, ask who identifies issues requiring specialist review and who tracks unresolved decisions. Request an example of the planning process with all client information removed. It should make the boundaries clear between financial planning, legal documentation and tax advice, including any separate specialist engagements.
“Understanding the people comes first. The next generation needs a voice in the conversation about the family’s wealth.”
A useful follow-up is to ask how the firm would involve family members with your permission, document differing priorities and revisit the plan when circumstances change.
Identify the cross border specialists
If your family, business or assets span countries, establish which jurisdictions matter before comparing proposals. Ask who would assess the relevant questions and what experience those professionals have with circumstances like yours. A referral network is useful only if you understand how the engagement would work.
Request the proposed specialists’ roles, the scope of each engagement and any additional costs. Clarify who coordinates information, how your permission to share it is obtained and who is responsible for advice in each jurisdiction. The purpose of this discussion is to identify the right expertise; a general wealth management proposal cannot settle your individual legal or tax position.
Test the investment process against your business risks
Ask the firm to explain how it would translate your goals into a portfolio. Discuss when you may need cash, how much loss you could tolerate and what could happen if business income fell during a market downturn. Your personal investments should be assessed alongside the wealth and risks already tied to your business.
Request a sample investment policy statement and reporting package. Ask how the firm sets limits on concentration, evaluates access to funds and selects a relevant performance benchmark. Where an investment has restrictions on withdrawals, ask for the terms and how those restrictions would affect your cash needs.
“Research should explain each investment decision, the risks behind it and what evidence would lead us to change course.”
If models or past performance are presented, ask about the assumptions, time period, fees and limitations. Find out how the team reviews decisions when evidence changes. A clear explanation of uncertainty is more useful than a promise about future returns.
Make coordination and accountability specific
Integrated planning should be visible in the proposed working relationship. Ask who your main contact would be, which decisions they coordinate and when your accountant or lawyer would be involved. Establish how investment decisions, retirement needs and business transitions would be considered together.
Request a sample meeting agenda and action list showing how responsibilities and target dates are recorded. Agree how often you would review the plan, which changes should prompt an earlier meeting and how outstanding work is followed up. Ask who covers the relationship if your usual contact is unavailable.
Compare the written evidence
Bring the proposals together before deciding. For a practical Canadian wealth management comparison, keep a record of the total estimated cost, services included, investment approach, specialist involvement and named responsibilities. Mark anything that is unclear and ask each firm to address it in writing.
Consider how well the team listens, explains trade-offs and responds to difficult questions. Ask how you would review progress against your goals and what the process would be if you later chose to leave, including any relevant fees or restrictions.
Choosing private wealth management support is easier when you can see how the relationship would work. Use these questions to turn an introductory conversation into a clear basis for comparing firms and deciding what fits your business and family.
Aligned Capital Partners Inc. (“ACPI”) is a full-service investment dealer and a member of the Canadian Investor Protection Fund (“CIPF”) and Canadian Investment Regulatory Organization (“CIRO”). Investment services are provided through ACPI or Bilyk Financial Private Client, an approved trade name of ACPI. Only investment-related products and services are offered through ACPI/Bilyk Financial Private Client and covered by the CIPF. Financial planning and insurance services are provided through Bilyk Financial Wealth Management. Bilyk Financial Wealth Management is an independent company separate and distinct from ACPI/Bilyk Financial Private Client.
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