When it comes to managing the complexities of their business, most executives are tireless in their pursuit of perfection. Every detail is attended to and when specific expertise is needed, they are fast to ensure they have the best person in place to attend to the job at hand.
But when it comes to being the steward of their own personal finances, many executives don’t follow the same approach. Instead, their own financial needs take a backseat to the day-to-day demands of heading a company. And the result of this inactivity can be detrimental to both the executives and their families, says Vartan Shahijanian, vice president and regional director at The Private Bank at Union Bank.
“It’s too important to get wrong,” says Shahijanian. “The result could potentially compromise the financial security of you and your family. I’ve known many business owners and executives who are perfectly in control when it comes to their business but who don’t have all the answers when it comes to their personal finances. The key is to find a person you can trust to travel alongside you on this important journey.”
Smart Business spoke with Shahijanian about how working with the right financial partner can help you gain control of your personal finances.
For executives that have been overlooking their personal finances, what is the first step to getting their financial health back on track?
You have to start by narrowing it down and enlisting the help of a private banker. The right private banker can help you do this by asking the right questions: Do you have a current will? If you have a trust, when was the last time it was updated? If you don’t have a trust, is this an alternative you should consider? Is it a good time to refinance? What are your goals for retirement? The answers to these questions will start to form a financial picture. From there it becomes easier to determine what the most critical next steps are.
What is the benefit of having the right private banker in your corner?
All of these financial considerations can be really overwhelming. The right financial partner will know how to guide you through all of the options and can bring in a team of people with the expertise that you need. Often they can help with issues that might not even be on your radar. For example, there was a client who was sending a sizable wire transfer overseas. He didn’t think anything of it until we explained some of the exchange options that existed. We were able to save him thousands of dollars on the conversion rate to British pounds.
Another scenario relates to insurance and an individual who had amassed an incredible art collection. He hadn’t revisited his insurance in many years and didn’t think about the fact that his wealth had changed and, therefore, his policy should, as well. It is in these types of circumstances that a close relationship with a private banker can make all the difference.
