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What are a Wealth Strategist and a Financial Administrator?

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Stuart Lucas has connected all the dots: from the first dollar you earn to the last dollar you give away.

- Robert W. Doran, former Chairman and Chief Executive Officer, Wellington Management Company, LLP

WHAT IS A WEALTH STRATEGIST ?

A Wealth Strategist plays the critical role in developing and executing a family's wealth management strategy. He or she works closely with their family to define management plans and goals and then oversees implementation, coordinating the involvement of family members and professional advisors. A Wealth Strategist integrates the advice and activities of each professional advisor and makes sure the advice is consistent with the overall strategy and goals.

A Wealth Strategist is, in fact, the CEO within your family, and it is the job of this individual or team to ensure effective wealth management over the long term. Becoming a Wealth Strategist doesn't require detailed knowledge of investment theory, estate law or the tax code. But it does require:

  • Patience and a long term perspective
  • The ability to foster good communication among family members
  • Accurate assessment of your own wealth management skills and those of prospective advisors
  • An informed layperson's understanding of how the wealth industry works
  • Reasonable financial and managerial discipline

 

WHAT IS A FINANCIAL ADMINISTRATOR?

A Financial Administrator (FA) is the Wealth Strategist's partner, an individual helping to integrate, execute and measure your chosen investment strategy and coordinatre all the players involved.

The FA is usually affiliated with a financial company, which could be a large financial conglomerate with multiple sources of revenue or a small, fee-only boutique.  To choose an FA, you must analyze their capabilities and resources - both the individual and the firm - and both need to be first-rate.  Your FA must be able to align your interests with his or her own, and strike the delicate balance between your needs and the demands of their employer.

What key skills should an FA possess?  Regardless of the investing strategy you choose, your FA should have an in-depth experience and expertise in:

  • Measuring financial performance
  • Managing key client financial records
  • Coordinating and recommending the work of specialists
  • Strategic asset allocation
  • Selecting outstanding investment managers (Active Alpha investment strategy only)
  • Episodic, dynamic asset allocation (Active Alpha investment strategy only)