Quartz Financial is a wealth management firm that specializes in sudden wealth. It’s an important differentiator from other financial advisors and wealth managers. When speaking to groups across the country, whether to consumers or industry professionals, inevitably, Quartz Financial Managing Partners David Rust and Shane Moore get asked the question, “Why are you guys doing this?” Their answer is always the same.
“If we don’t do it, who will?”
Ultimately, they specialize in sudden wealth because they care about the people who have the unique experience of suddenly being responsible for considerably more money than ever before. They know that it takes a different set of skills and experiences to support sudden wealth recipients through the challenges they will face with sudden wealth. They know the diversity of situations that create sudden wealth, and the financial, legal and emotional needs that are particular to sudden wealth.
David Rust explained, “For us, the fun part about sudden wealth is the puzzle that makes the needs of each client different. With many moving parts that are accelerated because of the urgent nature of the situation, our past experiences make us especially prepared for pulling pieces together and understanding the dependencies and timelines required to best take care of our clients.”
Sudden wealth requires immediate support that differs from traditional advisory, based on how the sudden wealth was acquired. Many sudden wealth recipients aren’t sure what to do or where to start. While the industry tends to approach clients with an investment plan first, Quartz has a comprehensive process that starts with finding out what issues the client has because of the sudden wealth situation. While family wealth is usually institutionalized, sudden wealth is very personalized, so advising on the financial management is a big part of sudden wealth, but only after the most pressing and time sensitive issues are under control.
“A dedicated process can help clients cope with the anxiety that can come from sudden wealth.”
Because Quartz Financial has been providing wealth management for sudden wealth recipients for many years, the process can help clients cope in a stressful time. The process starts with an introductory meeting to establish rapport and find out more about the sudden wealth situation. Questions and answers help serve as a gauge for where the client is in the process of their sudden wealth, and what goals they may have, moving forward. Understanding how someone attained their sudden wealth and what they want to get out of it are the first important pieces of the puzzle, before any investment recommendations are offered.
The process also reviews spending patterns and spending history, as well as anticipated spending after incurring sudden wealth.
“We had a client who wanted to build a very large home after their sudden wealth occurrence. The idea was that they would have plenty of room for their children and grandchildren to stay with them. Part of our discussion was to help them take a realistic look at the practicality of that idea, and to let them consider the reality of being alone in a big house for the majority of time, when family wasn’t visiting,” said Shane Moore. “We don’t try to talk our clients into or out of what they want to do, but we do have a responsibility to help them look clearly at their situation, their goals and their plans to make the most from their sudden wealth.”
Moore continued, “The process is extremely helpful to uncover when a client became suddenly wealthy and what has happened since? Sometimes we must undo issues and things that didn’t work the way they thought it would, and reset plans and expectations. We need to build trust in these situations to overcome unmet expectations that a client may have experienced before.”
Other parts of the sudden wealth process include the financial plan, focused on investments, estate, taxes, risks to meet the plan, and risk tolerance levels, and the practical operations, including how the sudden wealth recipient is receiving the money. The Quartz Financial Wealth Wheel is a guide that helps maximize effectiveness and minimize time as a part of the process. Finally, sudden wealth also brings sudden challenges from outsiders looking for a piece of the newly found windfall. Recipients may be more well known in the community, or find themselves in a media story about their sudden wealth, which creates more solicitations. Often recipients are not prepared to effectively filter those offers.
While everyone dreams of having sudden wealth, not everyone provides the same level of service to a sudden wealth client.
“We can now anticipate behaviors, because of our experience with sudden wealth clients over the last decade,” says Rust. “It surprises our clients that we are pretty good at knowing what they think and what is likely to happen to them, moving forward, both financially, with their spending and emotionally, with their challenges of sudden wealth. You get their attention with that kind of surety and conviction.”
If you want more information on how to prepare and manage sudden wealth, read, “Sudden Wealth, Blessing or Burden,” written by Rust and Moore, or contact Quartz Financial at (512) 243-5977. They’re not only the wealth advisors who specialize in sudden wealth, they wrote the book on it!