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Pinnacle Resource Center Managing Your Financial Team It is not rare today for business owners and even individuals to have a team of people who provide specialized advice on financial matters. This team can include a financial advisor, a broker for investments, a real estate agent, an insurance agent, an accountant, a trust officer, an attorney and possibly others. The challenge is having all of these people on the same page so that they spend more time managing your finances than you spend managing the team. You will maximize the impact of your team if you get the right people at the table, have them meet regularly, and give them a goal or goals to obtain. Let's take a look at each part. The Right Team The first task is making sure you have the right people at the table. Unfortunately, the financial world is full of people who want to disappear once they have sold you something, whether it's an insurance policy or a loan. Your challenge is to only let people on the team who value a long-term relationship over the short-term deal. You may also find that your business needs specialized expertise. That expertise may come in the form of an accountant, attorney or a consultant that focuses specifically on a particular industry, such as physician practices or a particular segment of your practice. A committed team member will be willing to help you find that person. Regular Meeting Schedule The second big task is making sure that your financial team works together. Their relationships and teamwork is imperative to your long term financial success. I recommend that clients have at least one meeting a year that includes the financial advisor, accountant, and insurance agent at a minimum. These three professionals account for a majority of the changes that you will make year to year in your financial plan. You will also want to involve your lawyers and trust advisors if you are discussing estate or succession planning as part of your meeting. The group may need to convene more frequently if the business has special needs or a specific issue arises. For example, I recently worked with a group of physicians on a plan for new office space. Their accountant participated in a meeting where we discussed the plan and pointed out areas where the physicians could maximize their return on investment if they altered parts of the plan. A good advisor may also pair you with someone who has experienced and overcome similar problems in business. For example, office managers in physician practices face similar challenges with billing, accounting, staffing, etc. If it makes sense and the clients agree, I will introduce office managers because one of them has experienced and overcome a certain problem. I often hear that this type of peer networking is invaluable. Financial Goals The third big task is your financial goal or goals. Everyone on the team is responsible for helping you identify risks and opportunities related to your financial plan. I recently worked with a business owner concerned about what would happen to his business if he suffered a short-term disability. We involved an insurance agent who suggested business overhead expense insurance, which was exactly what the owner needed. I have since recommended it to other business owner clients. Your team will truly excel when they are working toward a common goal or set of goals that you have laid out. The goals encourage your team to communicate, collaborate, and think creatively about your business. All members of the financial team should be focused on your goals and objectives and should be willing to work with the other members of the team to achieve those goals. Larry Whisenant is a financial advisor in the Medical Specialty Group with Pinnacle Financial Partners. You can reach him at 690-4010 or by email at larry.whisenant@pnfp.com. |
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