You Sold Your Business…Now What?

Apr 10, 2014 | Entrepreneurship, Independent fiduciary

For some entrepreneurs, the day will come when it’s time to sell the business they worked so hard to build. It’s your not just the product of years of hard work, it’s also your nest egg. Who can you trust with it?

A fiduciary wealth manager is legally required to act in their clients’ best interests. In my ideal world, all of Wall Street would operate at the fiduciary standard. Sadly, the opposite is true. Most of Wall Street firms are brokers – they operate at a lower legal standard that enables them to take commissions and push products into client portfolios. That’s why I founded LexION Capital as a fiduciary firm: I believe the highest standard in wealth management should be accessible.

Ironically, most money managers call themselves fiduciaries, yet are legally brokers. So: when looking for a financial advisor, these are the questions you must ask.

1. Do you have a series 7?

If yes, this person is a broker, regardless of title.

2. Does your advisor keep your assets at an independent custodian?

If every advisor operated this way, the Madoff scandal would never have happened. The only person who should have control of every piece of your financial puzzle is you! That way, you are protected by a system of checks and balances.

3. Do you have self-branded mutual funds?

Big brokerage firms have pre-approved lists of investments to sell. Do you want an advisor who is pushing products into your portfolio because they have inventory “on the shelf” and a limited selection? No – you want an independent advisor who can select the best investment opportunities for you.

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