Behind Every Strong Man: A Family of Strong Women

The largest transfer of wealth in history presents monumental

threats to those we love.

Blessed with strong women in my life, both personally and professionally, a

special place resides in my heart for a careful and trustworthy approach to wealth

management. I vividly recall sitting at the breakfast table as a child caught staring

at my mother’s tired expression. A single mother, she had just completed

another 12 hour nursing shift after studying for night school. That moment fired

up passions of advocacy as I increasingly realized, at a very young age, that

most investors, women and seniors in particular, need a trusted advocate when

dealing with the stock market and financial concerns. Now, several decades past

this career epiphany, my daily life is supported, organized and occasionally

scrutinized (pardon me…gently corrected) by my spouse and the women of

Triangle Securities Wealth Management.

Statistics infer that daughters, mothers and sisters will inherit at least $30 trillion

in assets over the next four decades. Studies also show that the financial

services industry fails to serve their needs. Will you leave a clear, concise and

manageable plan for the financial security of your loved ones? Everyone knows

Uncle Sam lurks and looks for his share at that precious estate opportunity—so

proper planning goes without saying. The Fiscal Cliff, budget deficits, fairness of

markets and higher costs are big threats likely to impact your family, too—just not

the biggest. You certainly cannot control threats like Iran, terrorism and political

gridlock. Still, the monumental threats to your daughters, mothers and sisters

arise when trusted advisory relationships are not established well prior to your

scheduled ascension (?). An emotional time; a time of extreme vulnerability; the

world on her shoulders…even the strong need the support of an integrated team

of legal, tax and wealth management professionals who will listen and deliver

wisdom for years to come. Strong Men, this legacy of support is under your

control!

Now two decades into my professional career as an advocate for families, I have

cringed at each story told by women taken advantage by unsuitable investments,

outright fraudulent practices and schemes or just plain inferior advice. In some

cases, advisors, and I use the term loosely, just do not possess the skills,

resources or humility to deliver on their advertisement. Often self-centered in

motivation, it is just as harmful to have advisory relationships with those who put

their financial or leisure decisions ahead of those they are paid and entrusted to

serve. Strong Men (and Women too), listen up! As with taxes, I can write with

certainty that you need to prepare and protect your loved ones from these

potential threats.

Please consider the following as you look to solidify or establish these critical

advisory relationships. The fiduciary* promises of customized wealth

management must include trust, service and value. The TRUST you establish

with an advisor is paramount to a long-term relationship. An exceptional level of

SERVICE must be given in good and bad markets with anticipation of your

family’s unique needs. Communication should be frequent and information

should be shared in a clear and manageable fashion. Any VALUE proposition

must deliver unbiased investment advice and financial strategies offered at a

pricing structure which avoids conflicts of interest. Every detail that causes

concerns over a potential advisor’s commitment to these promises should be

satisfactorily addressed. In summary, is the advisor always willing to advocate for

your family’s unique priorities?

With the spirit of Paul Harvey in mind, there is much more to this story. Whether

you independently manage investment and financial affairs or have an existing

brokerage or banking relationship, the below three links are worth further

exploration as you solidify in your own mind that you have done all you can to

protect those Strong Women you love.

A CFA® charter holder, I am biased to this site:

http://www.cfainstitute.org/about/investor/Pages/index.aspx

This WSJ reprint provides an executive summary of 10 things you should know

when thinking of hiring an RIA: http://webreprints.djreprints.com/44777.pdf

The RiA Stands for You website is made available and managed by Charles

Schwab & Co. The site is designed to be educational in nature and to provide a

number of resources that individuals can use to help them make better informed

decisions when selecting an advisor.: http://www.riastandsforyou.com/

*What Does It Mean to Be a Fiduciary?

Fiduciary duty represents the highest degree of trust and confidence that the investment

advisor will act in your best interest. Investment Advisors are governed by the

Investment Advisers Act of 1940 and applicable state securities laws, which govern

conduct and disclosure requirements, creating a high legal standard referred to as

“fiduciary” duty. Your advisor becomes a fiduciary once you have entered into a written

advisory agreement that explicitly acknowledges an advisory relationship and

obligations to you.

As a fiduciary, your investment advisor has the duty to:

Put the client’s interest first.

Act with due care and in utmost good faith.

Act with prudence; that is, with the skill, care, diligence and good judgment of a

professional.

Ensure that investment advice is suitable to the client’s objectives, needs and

circumstances.

Not mislead clients.

Make full and fair disclosure of all material facts.

Avoid conflicts of interest.

Fully disclose and fairly manage, in the client’s favor, any unavoidable conflicts.

Be loyal to clients.

An advisor will be measured against a higher standard of conduct than a stock broker.

Michael D. Hakerem, CFA®, is a managing director and chief investment officer of

Triangle Securities Wealth Management located in Raleigh, North Carolina.