TOP VIEW Affluent investors who assume that their large portfolios earn them a free pass when it comes to financial management may be in for a rude awakening. Achieving a strong working relationship with a wealth advisor requires a proactive approach and a candid communications strategy. Building trust with a financial manager entails a long, careful process. The alternative, unfortunately, can result in broken commitments and less-than-ideal investment returns.

Morgan Gust, former president of Giant Industries, a publicly traded petrochemical company based in Scottsdale, began working with Bagley when she was a vice president at JPMorgan. Initially, she did not make investment decisions for him. "It was a very different relationship," he says. Gust gave her a small amount of money when she opened her own firm in 1999; ultimately, he transferred more money to her control as his confidence in her ability increased.

Some investors choose to hedge their bets with more than one advisor in order to reduce their risk. Dean Stolber, co-president of MGM On Stage, which adapts film classics for live theater all over the world, has two firms managing his money: Homrich & Berg in Atlanta and Westmount Asset Management. Spreading the risk among the two eases his mind, he says, and although he harbors great trust in both firms, he admits that limiting his potential for trouble assuages his fears. "I rely on them more so I can relax," he says. "I don’t have to study the markets anymore. I spent a lot of time in the past studying the markets, and I couldn’t devote the time." Stolber has invested in real estate on his own, and says he’s been through many different managers. "It’s a relationship," he says. "You have to feel comfortable."

Trust also extends into other facets of a client’s life. Neri says that her advisor, Bagley, "has watched my children grow." When Neri’s oldest daughter graduated from college last year and wanted to buy a condominium, they discussed it with Bagley. "We were also helping support her financially, and so [Bagley] helped us with what we needed to do," Neri adds. "We have three children. Our two older children are taking control of their investments, and the firm advises them. They know exactly what their goals are."

When Gust’s father passed away, his advisor immediately began helping him work through what he calls the nuances. "She was in from the beginning," Gust says. "She didn’t say, ‘I’ll help you after the lawyers are done.’ I like someone who seems genuinely concerned about my interests, in terms of my money. But I would tell you that, over the years, when you’re dealing with your money, you’re dealing with other aspects of your life, too."

Establish Frequent and Frank Communication
Managers who simply don’t return phone calls rank low on any investor’s list. No matter how spectacular their portfolio’s returns, many individuals cite as terrible partners their past managers who either did not return messages or did not seem to listen to them. Investors also seem to abhor the practice of passing off phone calls to a subordinate.

Gust acknowledges that he likes his advisor to literally remain on call. "I might not think about my portfolio for several months," he says, "but when I do, I want to talk." Likewise, his advisor will call if she has failed to hear from him for a long period of time. "I’m like anybody," he says. "I like someone who gets back to me and returns my phone calls and emails." His previous advisors often failed these tasks, and sometimes asked their underlings to call him back. "I had the feeling my portfolio would come up occasionally, instead of them thinking of me all along."