Wealth is the ability to fully experience life. – Henry David Thoreau
- You have multiple firms managing your investments and therefore no clear picture of your asset allocation and investment strategy.
- You’ve come into a significant amount of money but don’t know where to start.
- You feel the pull to give back to your community but aren’t sure about the most impactful way to do so.
- You worry about the tax implications of passing your wealth to future generations.
It’s unlikely that every one of these scenarios strikes a chord with you, and it’s possible that none of them do. This illustrates an important point: Each person’s financial needs are distinctly different.
The same can be said of advisors. We may share the same goals – plan, manage, preserve, and grow our clients’ wealth – but our approach is often very different.
At large broker dealers, for instance, financial advisors typically wear multiple hats: investments, business development, client service, and more. Not only are they stretched thin across many roles but also across hundreds of clients. Meanwhile, wealth advisors at boutique wealth management firms often are supported by a team of experts in their respective disciplines— portfolio managers, estate and financial planners, and dedicated client service support. This allows boutique advisors to spend more time with each client and develop a deeper understanding of their lifestyle and goals. At Clarendon Private, your team gathers around the table to map out a plan to meet your unique goals.
Doing the right thing by clients
The mark of an exceptional advisor lies in their dedication to developing a comprehensive profile of a client’s wealth to provide customized solutions. Shockingly, in 2023 only 11% of advisors delivered this level of advice. Although the standard protocol for advisors should include the creation of detailed balance sheets, cash flow models, estate plan flowcharts, and a summary of estate and financial recommendations for clients to discuss with other advisors, these crucial components can fall by the wayside.
At Clarendon Private, it's not uncommon for us to spend a couple of hours in our first meeting with clients to get a thorough and holistic view of their financial situation, especially if their needs are complex. We’re not watching the clock or billing for those hours. We’re building relationships. It’s one of the things clients say they value most about us.
No two are alike
Every Clarendon Private brainstorming session is different. In one recent meeting, we focused on a client’s ownership of several multifamily units. We asked: "What's your investment structure—individual or LLC? What insurance coverage is in place?" As dialogue unfolded, we were able to craft an investment strategy and recommend a risk management plan tailored to his unique situation and needs. He then took our suggestions to his insurance broker to discuss a risk mitigation plan he felt good about. Our motivation wasn't financial gain (we're not in the insurance business), but rather the invaluable currency of trust.
Another client needed guidance on a business succession plan. We helped her understand how the sale of her business would impact her financial future and developed a strategy to manage the proceeds. In this scenario, we were able to provide advice on structuring the transition to optimize tax efficiency and minimize liabilities.
Many high-net-worth individuals also want an advisor with private banking capabilities. This includes solutions like mortgages or lines of credit secured by their investment portfolio. Although private banking is often a feature of larger financial institutions, it’s not exclusive to large firms. In fact, at Clarendon Private we offer the same banking and lending capabilities; but as a boutique firm, we are able to develop more personalized lending strategies, delivered with a higher level of client service.
Big or boutique?
High-touch client service and personalization may be beyond the reach of large financial institutions. However, one area where big firms have historically had an advantage over boutiques is in access to premier investment managers—until recently.
Changes in government regulations and technological innovation have opened doors for high-net-worth individuals and boutiques, giving them access to the same high caliber asset managers and alternative investments as large private banking institutions.
Improved access and optionality have narrowed the gap between boutiques and big institutions. But all things are not equal. Private wealth management is personal, and we believe boutiques remain at the forefront in terms of personalized service and tailored solutions. At Clarendon Private, we are continually investing in building trust and relationships with our clients. At the end of the day, that’s what matters most.
