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FIND A NEW PURPOSE The most common advice from members
Having applied yourself for many years Some members have who have sold is to take some time out
to one project, the void left after selling used coaches to help to consider what is important to you.
a business can be hard to fill. Do not them rediscover their Travelling and generally recuperating is
underestimate how your life will change if personal motivations vital to help you re-calibrate and adjust
you walk away completely. After going at to help them choose to a new life. Some members have opted
100mph for years, you may feel some guilt the next big thing in to take courses or attend conferences to
their life.
at doing nothing. You may feel the need learn more as they explore new avenues
to find something new to get you out of and find new passions.
bed in the morning. A successful exit will
give you options, but give yourself time to One member suggested having a ‘strategy
choose the right ones. day’ for yourself. Write lists of what
you want to do and achieve. It could be
It’s almost impossible to keep the amount building up another company, being with
you sell for quiet as news will circulate family or working with a charity. It’s useful
amongst professional and social circles. to do this before you sell so you have a
Speaking to a wealth manager early in the good story for why you are selling the
process will help you prepare for this with business and you have something to look
some wealth planning strategies. forward to.

My best advice when choosing a wealth manager, having gone through a lengthy process to do this
and got it wrong, is that referrals are the only way to get the right firm on-board. Also, pick a firm where
your amount of wealth is in their true sweet-spot.
Mike Lander, CEO, Ensoul

MEMBER INSIGHT: HOW TO CHOOSE A sure they understand your financial
WEALTH MANAGER circumstances and objectives. Do they
understand your risk profile? If your adviser
Members of The Supper Club regularly share is looking to take short positions, ensure your
advice on how to choose and use wealth total financial commitment is well understood.
managers; here are ten tips to consider based
on observations from those who have gone Expertise: You must have confidence in the way
through the process: they are set up: the right research teams, the
right presence in the right markets, and where
Recommendations: Always look for they don’t have the expertise they get advice
validation and references from third parties, from others who are better positioned
but don’t solely rely on endorsements from
friends, family, and your network Diversity: How diverse is their portfolio of
advice and investments? Do they advise on
Benchmark: Organisations like PIMFA (www. passion assets (ie wine, classic cars) and other
pimfa.co.uk) and ARC (Asset Risk alternative investments?
Consultants, www.assetrisk.com) measure the
performance of wealth managers to help you Fees: Following the Retail Distribution Review
differentiate (RDR), wealth managers are legally obliged
to make their fee structures transparent to
Regulation: Use a wealth manager or firm clients with a breakdown of charges and
regulated by the Financial Conduct Authority how they are calculated. Actively managed
(FCA), who are covered by the Financial portfolios up to £2m will typically cost around
Services Compensation Scheme (FSCS) 1%+ in management fees, inclusive of trades.
On bigger portfolios, you can negotiate fee
Track-record: Look at the background of structures that exclude cash
your adviser, what qualifies them to offer
advice, and their track-record on advice and Costs: Don’t just think about fees but
investments. Don’t judge simply on quarterly custody and trading costs wrapped in. Agree
or half-yearly results, but look at the long- on how external funds are managed because
term results to gauge performance agreements on FX and costs can be quite large
Motivation: What is their personal incentive Total expense ratio: Final performance is
to manage your wealth effectively? If you are always measured net of fees (for example, they
bought into the individual, are they planning a will need to grow your portfolio by 7.5% to get
long career with your wealth manager? Make you 6% annually)