By Wealth Management Solutions
Working for one of the Big 4 accounting firms is an accomplishment to celebrate. But the prestigious position also comes with a slew of investment restrictions. Whether it’s Deloitte, Ernest & Young, KPMG, or PwC, employees of these firms are required to have their investments screened and reported on a regular basis to ensure there are no conflicts of interest or insider trades happening.
Though this policy is important to maintain fair markets which strives to prevent scandals and fraud, it does create several challenges for employees of the Big 4. At Wealth Management Solutions, we understand these unique challenges and strive to walk alongside our clients as they overcome them. That’s why we offer comprehensive financial planning and investment management to employees of the Big 4.
The Challenges
The stringent investment monitoring of the Big 4 firms create three major constraints for employees:
- Fewer investment options: Because the Big 4 firms are responsible for auditing the financials of nearly all the companies listed in the S&P 500 and they are forbidden or restricted from investing in their clients’ companies, the employees of Big 4 firms are left with limited options when it comes to what they can invest in. It usually comes down to a pre-approved list of mutual funds their firm has signed off on. Employees have less investment options to choose from, which can result in lower investment returns.
- Higher management costs: Not only can funds have higher internal operating costs and management fees, limiting the investment choices available to employees of the Big 4 can increase the fee drag from management, trading and operational charges from the fund companies. This increased cost serves to impact the performance potential of the fund.
- Heightened investment anxiety: To top it all off, having your investments screened and reported can be a nerve-wracking process. Between keeping track of which investments are prohibited and trying to build a portfolio that aligns your long-term financial goals, working for the Big 4 can cause heightened investment anxiety.
The WMS Solution
At WMS, we believe that staying compliant with your firm’s procedures shouldn’t cause you to sacrifice performance or overpay for investment advice. We are familiar with the Big 4 investment constraints and can design a portfolio with your specific needs in mind. We ensure that all the investments are first cleared and approved by your firm, and provide ongoing management and financial advice to you and your family.
Our firm offers multi-custodian capabilities, meaning we can accommodate most client accounts exactly as they are right now without having to transfer funds from one provider to another. Combined with our comprehensive process grounded in the four cornerstones of planning, strategizing, planning, and governing, WMS is a full-service firm that can help employees of the Big 4 account firms work towards financial confidence.
Our Planning; Your Future
Don’t just take our word for it. If you’re an employee of a Big 4 accounting firm, we encourage you to reach out to us with any questions or concerns you might have. It may be our planning, but it is your future and we would love to help you design it! To learn more, schedule a complimentary consultation by contacting us at (949) 475-9700 or info@wms-llc.com.
About Wealth Management Solutions
The story of origin: Wealth Management Solutions was created in 2003, following the personal family tragedies felt by both partners of the firm. First, Richard Riva, the founding partner, lost his father unexpectedly and before any legacy planning was done that could have extended his family’s legacy beyond the fourth generation. Secondly, Martin Lombrano lost his father before plans and strategies were designed to maintain his family’s wealth and legacy. Our partners and team members all share similar experiences due to a lack of planning for their families and are committed to our clients not experiencing the loss of their legacies due to a lack of planning. This is why we say: Our Planning; Your Future.
All investing involves risk, including loss of principal. No strategy assures success or protects against loss.
The opinions voiced in this material are for general information only and are not intended to provide specific investment advice or recommendations for any individual.
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