Things to Consider if you are a High Net Worth Client

Is it any wonder that Warren Buffett, hailed as the world's most successful investor, advises the average investor to invest in shares through index funds mirroring the total stock market, rather than attempting to pick winning shares individually or handing their money over to a fund manager. Besides, as Buffet points out, the management fees on index funds are much lower than those of managed funds.

Another problem for high net worth individuals is that seeking advice for a financial problem is like seeking advice for a sore knee. See a surgeon and he'll want to operate on it. See a chiropractor and he'll want to manipulate it. See an acupuncturist and he'll want to needle it. Similarly, the advice provided by many financial advisers is biased towards selling you a particular investment category. Stock brokers would like you to put all your money into shares. Most financial advisers want to invest you a managed fund. Real estate agents are licensed only to sell real estate.

Right away, you can see a disconnection here. If you want to invest in both shares and property, for example, who can you turn to for advice on the best combination of share and/or property investments to meet your own specific needs and objectives? The answer is none of the above.

Not surprisingly, a high degree of investor cynicism has begun to overshadow the conventional investor-financial adviser relationship, and this was cited in the report already mentioned.