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Mixing friends, family with business is a danger. One adviser was fired by his dad, only to find himself replaced by his own son
Clyde Wyatt managed his father's money for about 18 months before he was abruptly dumped for another adviser: His own son Chris. One day my father was asking some questions about investment options for some maturing certificates of deposit while my son was with me,” recalled Mr. Wyatt, managing director of Navigation Financial Group, which manages $900 million in assets. “From that moment, I lost my father as my client and he has been working with my son since. My dad likes having his grandson as his adviser better. There's no friction.”
Mr. Wyatt's case shows that a family bond or close friendship doesn't always translate to a solid client relationship. Since family members and friends can often demand more from advisers than their regular clients — or overstep the bounds of the business relationship — practice management experts agree there are some simple rules to consider when deciding whether to take them on as clients.
First, advisers need to keep their personal relationships and business relationships separate and clearly explain the limits to clients.
Read the full article at InvestmentNews.com here.
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Author: Philip Calvert
Posted: Monday, March 01, 2010 | 5:22:16 PM
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