High inflation, a looming recession, war in Ukraine, gas prices, COVID and a gyrating stock market.
They all affect the economy and consequently feed into the confidence or lack thereof regarding one’s investments.
The rich are no exception. Many seek professional help from bankers, investment advisers and others that can guide them through the current economic battlefield.
What do these advisers tell their clients? We spoke with advisers at Berkshire Bank and Trustco Bank who advise high net worth clients.
The term “high net worth” can mean a lot of things, but for our purposes it could be people with $1 million of assets, although Trustco’s representative said they put no minimum on the amount needed to seek advice.
All three take a common sense approach, starting with questions of their clients.
Is an individual looking to retire and move out of state as many are doing? Are they looking to pass on wealth to their children, or donate it to charity or both?
Or are they relatively young and looking to build a more robust portfolio?
“You work backwards for the client. ‘Tell me what you want to do,’ ” Berkshire Bank Vice President John Muse said of how he starts his conversations with people.
“We more or less educate them that there are going to be volatile times, highs and lows and you don’t want to be reactionary in the highs or the lows and the best course is to stay the course,” added Patrick LaPorta, a Trustco vice president.
There are, however, some recent trends in the wealth management world, driven by rising interest rates and an uncertain stock market.
The rise in interest rate income from what was essentially zero three years ago to almost 5 percent is dramatic by recent standards and it has prompted advisors like Muse to put their clients in bonds, such…
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