The laundry list of acronyms and lingo
for financial products can overwhelm
the most astute business owner. How about a GRAT or an ILIT, add a QTIP, LLC
and GST transfer, and don’t forget the CRT.
“Having a lot of wealth is complicated,”
says Joe Wojcik, senior vice president,
regional trust manager, The Huntington
National Bank. Wojcik says a wealth management adviser’s role includes translating
what he or she knows about tax, accounting
and finances for successful professionals
who spend most of their time managing
their businesses — not their wealth.
“The key is client understanding,” he says.
Smart Business spoke with Wojcik about
why wealth management advisers should
be trusted partners who steer you toward
the best solutions for your assets.
How does a wealth management adviser
translate products and options?
A wealth management adviser looks at all
of a client’s variables and helps him or her
understand and choose the best financial
options. Variables include stocks and bonds,
real estate, retirement benefits, insurance,
closely held business interests and various
types of investments. An adviser shows
business owners the menu of products and
services and helps them understand it so
they can make appropriate decisions. A
good adviser offers investment advice, help
with income tax planning and estate and
trust planning, provide risk management
solutions and maximize charitable gifts.
The best advisers invest their time and
expertise to take comprehensive looks at all
the variables. If the bank offers a solution
that fits, the adviser will arrange the transaction. But the bank’s product menu should
not set boundaries. If the bank doesn’t offer
a particular solution, a trusted adviser will
look outside the organization for the right
solution.
What does it mean to be a trusted adviser?
Fiduciary comes from the Latin word
‘faith.’ A fiduciary is a person who is
extremely loyal and does not put personal
interests above that loyalty. Your wealth
management adviser should act like a fiduciary, provide valuable advice and build a
lasting relationship with you, always putting
your interests first. Again, education comes
into play. A good adviser wants you to understand what products are available so you
can make decisions together as partners.
How does this partnership work in relation to
the roles of accountants and attorneys?
Since tax is often 40 percent or more of
the equation for successful business owners
and other professionals, true wealth management requires substantial tax expertise
in cooperation with the client’s tax professionals. You can’t make a decision on financial issues without considering taxes. The
key for wealth management advisers is
being able to cooperate, coordinate and
work as a team with the accountant and
attorney. You can think of them as the front
end of the financial advising process.
Advisers narrow down options for successful clients, and then pull in the accountant
and attorney to gather their expertise. From
there, the group helps the client implement
the determined solution.
Will you elaborate on how managing wealth
is an educational process?
Owners who are successful often need a
lot of help with financial issues like succession planning because they have always
been so focused on their businesses.
Advisers explain various strategies to help
them realize their goals. Advisers ask the
tough questions they might not think about
because they are too busy with day-to-day
business activities.
For example, maybe a business owner
doesn’t stop to think about how the next
generation will impact the success of the
operation. Advisers help clients and the generation that will succeed them figure out a
reasonable structure to be fair and equitable
without interfering with the long-term success of the business. Advisers connect with
the next generation and educate them on
what they will face, such as issues that surround siblings who work in the business
versus siblings who do not.
Of course, this is just one example.
Education is just as important for more
common wealth-oriented products, such as
trust funds. Explaining how every product
works is the difference between advising
and selling to a client.
What lessons have business owners taught
you about wealth and success?
Going back to the role a fiduciary plays,
integrity, confidence and respect are important characteristics for any adviser you
trust. And I find that business owners who
display these same traits are the most successful. Those you can trust with a handshake are immensely successful because
they are easy to do business with. So when
I meet clients who turned $500,000 into $10
million, they share a common trait, and that
is integrity. It’s the opposite of what you
might expect, with scandals like Enron
painting a cold portrait of how business
owners realize success. But knowing they
are wonderful people, you are eager to do
business with them and help them reach
their goals.
JOE WOJCIK is senior vice president, regional trust manager for
The Huntington National Bank, Akron. Reach him at (330) 258-2360 or [email protected].
