Phase 5: Implementation
It is in this phase that the planning process comes
to life. The action plan can serve as a To Do list of sorts, and next
steps are relatively straightforward. This does not, however, mean that
implementation is easy or quick. This phase always requires a
significant amount of work on the part of the specialists and the
wealth manager, and is often where the process is derailed by
unanticipated issues or mired in legal and contractual paperwork. A
successful implementation will require ongoing involvement and
commitment from the client and all the professionals.
Phase 6: Following Through
Both our statistical studies and our anecdotal
experiences confirm that many wealth managers and their clients make a
critical mistake after the implementation phase by not following
through on the plan to evaluate or modify its components. Wealth
protection is a serious matter and can save wealthy clients money and
heartache when administered and maintained correctly. Client-driven
changes, new regulations and technological advancements can all result
in updates to strategies, documents and equipment. Effective
follow-through includes these regular activities:
Environmental scanning.
Work with the protection specialists to stay abreast of any changes
impacting both wealth protection disciplines and to what extent your
clients' plans are affected.
Client-driven contact.
Changes in the client's life, whether marital, lifestyle or
geographical, can have a material impact on a wealth protection plan.
When this occurs, the wealth manager should update the client profile
and reevaluate the efficacy of the plan.
Ongoing and periodic reviews. Wealth
managers meet with clients on a regular basis and wealth protection
requires the same level of attention. Periodic meetings provide a forum
for feedback and a chance to observe various protection
strategies as part of the overall wealth management experience.
Adopting a systematic approach to wealth protection
can help make a serious and sometimes unpleasant task proceed more
smoothly for all parties involved and ensure that the result is a plan
that delivers protection and peace of mind for the wealthy client.
Hannah Shaw Grove is the author of
five books on private wealth and advisory practice management. Russ
Alan Prince is president of the consulting firm Prince & Associates.