GoldPeg9: I feel this is good advice for preparation before speaking to private bankers, wealth managers, Lawyers, etc. It’s best to be prepared with answers as well as questions.
Sorry don’t have a link, so don’t know who wrote the following.
Top Ten Things a Private Banker Should Ask
We believe that only a structured client questionnaire ensures a comprehensive profile. Unfortunately, we have found that only a small minority of private bankers is using structured questionaires or check lists to get a better understanding of their potential private banking client. Some advisers don’t even ask any questions at all.
Therefore we have drawn up a list of ten things a wealth manager or private banker should at minimum ask from a potential private banking client:
1.Personal situation (profession, children, family, residence)
2.Financial situation (asset to be invested, real estate, other assets as well as tax issues)
3.Income situation ( salary and other income)
4.Risk appetite and investment horizon (objective risk requirements)
5.Ability to cope with uncertainty (subjective feelings about volatility)
6.Quantitative objectives of the investment (expected return)
7.Life goals (Where do you see yourself in 5, 10 and 25 years?)
8.Desired type of cooperation (advisory or discretionary mandate, also form of communication)
9.Other requirements (e.g. large payouts that are to be made from the assets, currency preferences)
10.Source of the assets, tax status
After the meeting the private banker should send the potential private banking client a detailed, written debriefing summarizing the findings of the initial meeting. In our mystery shopping analysis only two banks (out of 20) have taken the effort to send such a summary. We see this as a lost opportunity to show the client how much the potential new bank cares about his situation. We have also developed a more comprehensive test/questionnaire – drawing on the research of behavorial finance and psychology – to determine the financial personality of a (new) client.