FAQs: Wealth
Q: What is Wealth Management?
Wealth management is a service that provides customized personal financial services such as investment management and financial planning to private and institutional investors. This can also include advice on the use of trusts and other estate planning vehicles, business-succession, and private banking services. Our mission is to help individuals and their families effectively manage both personal wealth and business needs. Our team applies tested principles and provides highly individualized financial solutions. We work closely with high-net-worth individuals, families, and foundations to develop wealth and investment management strategies. We then identify investment opportunities to help them reach their objectives.
Q: How do I know if I qualify?
While we work with a wide range of individuals, families, business owners and institutions, typically our clients have a minimum of $250,000 in investable assets.
Q: I don’t have a lot of money. Do I need a trust?
Trusts can be flexible and customized instruments that perform many useful estate planning functions and offer protection in many different situations. While you don’t have to be independently wealth to use one, it does make it cost-effective to have a certain level of assets, such as investments, real estate, etc. Trusts can be used to control and direct assets, minimize estate taxes, and protect assets from lawsuits and creditors. FSG has several trust officers that are Certified Trust and Financial Advisors (CTFA) designees that have many years of experience in designing and administering trusts.
Q: What does a Portfolio Manager do?
A portfolio manager makes investment decisions and actively manages money for individuals or institutions. On the investments side, portfolio managers perform analysis and research and are ultimately responsible for establishing an investment portfolio that is customized to the needs and objectives of the client. They select and allocate appropriate investments according to the investment objective selected by the client.
Portfolio managers also monitor economic and market trends to maximize portfolio returns while minimizing risk in the choice of fixed income vs. equities or alternative assets, domestic vs. international, growth vs. value, and other variables encountered in the attempt to maximize return at a given appetite for risk.
Q: Who needs a Portfolio Manager?
Those clients who have investable assets and want customized and ongoing investment management could use the services of a portfolio manager. The manager will provide ongoing allocation and investment of funds, all while staying in close touch with the client to review and optimize the investment strategy. Particular care should be taken in the selection of a firm with qualified portfolio managers, those with years of experience, and the qualifications of a Chartered Financial Analyst (CFA) designation. FSG’s two portfolio managers have both achieved CFA designation.
Q: What is the difference between the services FSG Bank Wealth Management provides compared to a brokerage house or other investment companies?
FSG's money management model is fee-based, which means we don’t charge commissions. We aren’t incented to use certain products or funds, so we are completely objective in our role as investment manager. We also provide other services to our clients such as private banking, financial and estate planning, and insurance. Our team is headquartered here in Chattanooga, so we are very responsive to clients and conduct much or our business face-to-face.
Q: What questions do I need to ask when looking for a Wealth Management partner?
The most important factors are whether the team is qualified and experienced in helping clients with their personal financial affairs and whether they have access to a full range of products and services to meet the needs of the client. Also, how the advisor is compensated is extremely important information, as this will indicate whether he or she has a conflict of interest. Finally, having a local team that can be responsive and accessible is very important as well. With our team headquartered here in Chattanooga, FSG Bank Wealth Management is committed to this market and has over 200 years of combined experience in serving client needs.
Q: If my investments decrease in value, does FSG Bank Wealth Management still make money off of my account? How is that different than other investment companies?
Our fee-based money management approach allows us to focus on understanding our client objectives and risk profile and on building a portfolio using a wide range of investment vehicles without regard to how we might be compensated. This leads to better long-term performance and frees us up from conflicts of interest in regard to how we are compensated. Other brokerage models typically will charge a commission with incentives to the broker to sell certain products.
Q: Are my accounts FDIC insured?
Typically, our money management accounts invest in securities that are not FDIC insured; there is no guarantee on the performance and they may lose value. While we do invest in some securities that have FDIC backing, we tailor each account to the client’s risk profile and discuss return expectations initially when we open the account and routinely throughout the investment horizon.
Q: Is it possible for FSG Bank Wealth Management to do a comparison review to show me how my accounts would have performed under your management? How much does that cost and what does it entail?
Absolutely. We have the ability to analyze each client’s account that they hold elsewhere to review the investment return and the risk of that portfolio. This leads to a discussion about ways we can improve on that process and to better understand a client’s overall asset allocation across multiple accounts. We provide this service for free, and only need a copy of the client’s latest statement to get started.
Q: What is Private Banking?
Private Banking is a form of service that gives high net worth individuals access to a wide variety of financial products at FSG Bank including mortgages, investments, and other wealth management solutions through a single point of contact – a personal relationship manager who acts rather like a concierge.
At FSG Bank, Debbie Scott is one of our private bankers available 24/7 to offer a hands-on approach and flexible options to her clients, often meeting them in their homes, offices, or even on their airplanes or yachts to conduct business. She and her team become the first point of contact for a client, even a trusted advisor for all requirements pertaining to their finances.
Q: Who qualifies for Private Banking?
Whether you have accumulated a lot of wealth or are a member of the emerging affluent (such as a new professional), a private banking relationship at FSG Bank can be ideal to help you navigate your financial options, protect your wealth, and manage your assets.
Our personal relationship managers can be especially helpful if you lack the time to be more involved in your finances or if you are looking for ideas on what to do with your money. Private clients are assigned their own personal relationship manager. Typically, the relationship manager should become the first and single point of contact for a client, even a trusted advisor for all requirements pertaining to their finances. This means no queuing up at the local branch to deal with a potentially different teller each time one has bank-related query. Indeed private banks don’t tend to have branches at all, and the availability of relationship managers is far more accommodating than the traditional 9:00-4:30 opening hours of a high street bank.
Private Banking stems from a core function to cater to the financial needs of affluent individuals for whom more typical ‘retail’ banking services would be an inefficient use of their wealth. There are a variety of ways in which the range of services, and indeed the level of service, within private banks distinguishes itself. We build the total client relationship while growing all the Lines of Business within the bank. We work as one team with our other LOB partners to reduce conflicts and miscommunication. Realizing we don’t have all the knowledge, we partner with the appropriate LOB to deliver the customized answer to the client’s needs.
Q: What sets FSG Bank Private Banking apart from your competitors?
Our approach is different. As a community bank, we believe in hometown relationship banking, and we take a customer-centric approach. Our private banking clients have direct access to executive management at critical times. Understandably, when transactions become especially complex, clients often seek to interact with highest levels of bank management. The door to the FSG Bank executive team is always open to you as a private banking client.
As a locally based institution, we consider that an obligation and a privilege. Our dedicated team of private banking professionals has over 74 years of combined experience bringing clients success based on our knowledge of the local market. We understand that cost consciousness is a major factor in your success, too. That’s why we believe that our combination of interest rates, fee structures and dedicated client support translate into high value banking unmatched by any other bank serving the area.
Q: Why would I need a private banker?
As the single point of contact for your financial information, a private banker understands all the aspects of your financial needs. Having a point person like this saves you time, especially since we come to you.
