Beginning a relationship with an investment consultant Chicago involves more than signing an agreement and transferring assets. The first year establishes the foundation for an ongoing partnership that may span decades. Understanding what to expect during this period may help investors evaluate whether a particular advisor is the right fit and prepare for the process ahead.
The Onboarding Process
The relationship typically begins with a discovery phase. During this period, the advisor gathers detailed information about the client’s financial situation. This may include reviewing current investments, understanding income and expenses, identifying financial goals, and assessing risk tolerance.
For clients seeking investment management in Chicago, this process may also include discussions about Illinois-specific considerations. Illinois has a distinct tax landscape that may affect investment positioning. These factors vary by individual circumstance, and investors should consult their tax professionals regarding their specific situation.
The discovery phase typically involves one or more in-depth conversations and a review of relevant documents such as account statements, tax returns, and estate planning documents. The goal is to develop a complete picture of the client’s circumstances before making any investment decisions.
Portfolio Construction and Implementation
Once the discovery phase is complete, the advisor develops an investment strategy based on the client’s objectives, timeline, and risk tolerance. This strategy guides how the portfolio may be constructed.
Implementation may involve transferring existing accounts to the advisor’s custodian, liquidating certain holdings, and purchasing new investments aligned with the recommended strategy. Depending on the portfolio’s size and complexity, this process may take several weeks.
For taxable accounts, the advisor may consider the tax implications of proposed changes. This may include evaluating unrealized gains or losses in existing holdings and determining whether to implement changes gradually. Tax-sensitive investing does not guarantee a reduction in taxes, and investors should consult their tax professionals.
The First Review Meeting
After establishing the portfolio, most advisors schedule an initial review meeting, typically within the first few months. This meeting provides an opportunity to discuss how the portfolio is positioned, address any questions that have arisen, and confirm that the strategy remains aligned with objectives.
During this meeting, the advisor may also review any developments in the client’s personal or financial circumstances that may affect the plan. Changes in income, expenses, family situation, or financial goals may warrant strategic adjustments.
Ongoing Communication Throughout the Year
Investment management Chicago, as elsewhere, involves ongoing communication between client and advisor. The frequency and format of this communication varies by firm and client preference.
Some advisors schedule quarterly reviews, while others communicate more or less frequently depending on circumstances. Many provide written reports summarizing account activity, holdings, and performance. Most are available between scheduled meetings to address questions or discuss developments.
Understanding how an advisor communicates and how accessible they are when questions arise may help investors evaluate whether the approach fits their needs. The first year is an opportunity to experience this communication firsthand and determine whether it meets expectations.
Year-End Considerations
As the first year draws to a close, the advisor may conduct a year-end review. This may include evaluating whether any tax-sensitive strategies are appropriate before year-end, reviewing the portfolio’s performance relative to objectives, and discussing priorities for the year ahead.
This review also provides an opportunity to assess the relationship. After a full year, clients may have a better sense of how the advisor operates, how they communicate, and whether their approach aligns with the client’s needs.
Conclusion
The first year of an investment management relationship establishes the foundation for a long-term partnership. From the initial discovery process through portfolio construction, regular reviews, and year-end planning, investors may gain a clearer sense of how the advisor operates and whether the relationship meets their expectations. For Chicago-area investors, understanding Illinois-specific considerations may add another layer of importance to selecting an appropriate investment consultant in Chicago.
For investors seeking investment management in Chicago, Virtue Asset Management is an independent, fee-only investment adviser registered with the U.S. Securities and Exchange Commission. Registration as an investment adviser does not imply any particular level of skill or training. The firm provides investment management and financial planning services to high-net-worth individuals and families. Virtue acts as a fiduciary when providing advisory services and does not receive commissions from the sale of financial products, insurance, or securities in connection with those services. To learn more, visit virtueam.com.
Disclosure: This material is provided for general informational and educational purposes only and should not be construed as individualized investment, tax, accounting, or legal advice. Investing involves risk, including the possible loss of principal. No investment strategy can guarantee a profit or protect against loss. The appropriateness and potential consequences of any investment, tax-sensitive, or financial-planning strategy depend on a client’s individual circumstances. Virtue Asset Management does not provide tax, accounting, or legal advice. Clients should consult the appropriate tax and legal professionals. For more information about Virtue’s services, fees, and conflicts of interest, please review our Form ADV Part 2A, available here or upon request.