Love, Loss, Legacy – The Top 3 Reasons Financial Professionals Hire a Private Wealth Advisor

“I work in finance…why do I need to hire a financial advisor?” It’s a question and topic area that I have spent many months researching. The financial professionals that I interviewed included those that work within the private equity, investment banking, and asset management industry. Their expertise within the finance field is obviously more advanced than the average Joe, but there is a recognition that a private wealth advisor can significantly help as it relates to helping them meet their personal financial goals.

Many of our financial professional clients have realized that their expertise and time is better spent focusing on their career and allowing an advisor to help them with their personal wealth management. When asked what prompted clients to consider working with a wealth advisor, many topics surfaced. Those topics all boiled down into three main areas- Love, Loss, and Legacy. We will explore each of these briefly below and continue to explore more in depth in future posts.

Love

The love that financial professionals have for their family is one of the main reasons they look to hire an advisor. Generally, the financial professional also runs the daily household financials and carries the wealth management responsibility. They often want to offload this responsibility for two main reasons. The first is continuity – they want to ensure that should they get hit by that proverbial bus, their family has a relationship with someone they can trust to navigate the process. The second, is to ensure that they are proactively taking steps to care for their family. Ensuring that they take care of their loved ones is a major catalyst towards working with an advisor. 

Loss

Loss, in this context, is monetary loss. In the early parts of a financial professional’s career, it is easy enough to do-it-yourself. Given their net worth is not that large and the situation is not as complex, this option is a viable solution. Once their situation becomes more complex with a spouse, a couple children, and an ‘extra zero’ in your net worth – that is when a financial advisor can help. An advisor can help to set up a disciplined and thoughtful way to reach your goals. They also focus an effort on preserving and growing your wealth all the time – not just when you are able to look at it on the weekend. 

Legacy

The final reason is a mixture of both the Love and the Loss concepts. Defining a legacy is not a thought process most individuals think about on a daily or even annual basis. Starting to truly understand what you want your legacy to be can influence many financial decisions. Is your legacy to leave money to your heirs, donate to charity, or make an impact during your lifetime? Depending on how you answer that question, it can lead to different decisions. Many financial professionals start to determine and define their legacy as they advance in their career and having an advisor guide them through that process can allow for their legacy goals to be fulfilled.

It may seem a bit counterintuitive that someone who works in finance hires a financial advisor. However, the driving factors behind this decision are all rooted in these three broad concepts. Creating a disciplined plan around these factors allows you to focus your expertise, time, and energy in your career. With additional time to focus on your professional career you can rest assured, knowing that those that you love will not suffer major losses and you will be able to fulfill your legacy.


Matt Kocanda, is a Senior Advisor at BDF and a member of the Investment Committee. The investment committee develops BDF’s overall investment strategy. Matt focuses on advising Financial Service Professionals through their complex needs – including cash flow, tax, or estate planning. Matt received an undergraduate degree in Finance from Indiana University.