14 myths about business wealth management, debunked
To help you avoid these pitfalls, 14 Fast Company Executive Board members debunk the most common business wealth management myths and share what leaders should remember instead.
1. TRADITIONAL INVESTMENT ADVISORY GUARANTEES SUCCESS.
Investment advisory is a myth in itself. Screenplays, private stock, and indices in retirement portfolios can all be optioned. Payout structures to equity holders in movies can be more certain than private equity, since royalties are paid in the absence of liquidation preferences. The velocity from derivatives and private equity can generate wealth more quickly, but the distribution varies. – Sean Adler, SWN
2. WEALTH GROWTH AND MANAGEMENT IS STRAIGHTFORWARD AND GLAMOROUS.
There isn't one perfect path. Sometimes the product or service that gets you there isn't glamorous. Know that wealth isn't just what's earned—it's what's built sustainably, passed along wisely, and anchored in purpose and people. Managing wealth isn't simply about tracking the cash flow or accumulating assets—it's about stewarding value, passing it on, and uplifting others along the way. – Larry Brinker Jr., BRINKER
3. YOU SHOULD WAIT UNTIL YOU'VE BUILT UP 'ENOUGH' CAPITAL.
The biggest myth is thinking you need to wait until you've built more wealth to start managing it. Leaders overlook how far ahead you get by having capital to work with early and investing in things you know you'll need. It's like housing. If a $1M home rises 10 percent in a year, you'd need to save $100K just to keep up. Delaying can cost more than starting with what you've got. – Travis Schreiber, erase.com
4. BUILDING WEALTH MEANS NEGLECTING OTHER ASPECTS OF YOUR LIFE.
Chasing account balances while their health crashes, marriages crumble or souls are empty is not a 'rich life.' True wealth integrates everything. You're broke if you're rich but can't sleep, disconnected, or dead inside. Real wealth management means investing in vitality, love, and purpose. The fullest accounts mean nothing if you're too depleted to enjoy them. – Dr. Camille Preston, AIM Leadership, LLC
5. WEALTH MANAGEMENT IS SOLELY FOR THE WEALTHY.
One of the biggest myths is that wealth management is only for the ultra-wealthy. In reality, strategic planning is crucial at every stage of business growth. Many leaders overlook how early tax planning, investment diversification, and succession strategies can protect assets and fuel long-term sustainability, even before they reach peak revenue. – Maria Alonso, Fortune 206
6. BUSINESS WEALTH MANAGEMENT IS ALL ABOUT INVESTING PROFITS.
The biggest myth is that business wealth management is only about investing profits. In reality, it's a holistic strategy that includes tax planning, risk management, succession planning, and aligning personal and business finances. Ignoring this broader view can lead to missed opportunities and long-term instability. – Stephen Nalley, Black Briar Advisors
7. THERE IS A SINGLE GUARANTEED FORMULA FOR SUCCESS.
The biggest myth in business wealth management is believing there is a singular, proven process everyone follows. You benefit mostly from close fiduciary advisors who ask deep questions on how you view financial success, and then help you create a specific plan customized for you. It sounds simple, but remember, wealth management is not 'one way/right way'—it's what way is best for your goals. – Rich DePencier, Brand Growth Accelerators
8. YOUR WEALTH DATA IS INHERENTLY SAFE.
The biggest myth is that wealth data is automatically safe. Leaders often overlook backup strategies for financial records, risking catastrophic loss. Diversify storage locations and test recovery processes regularly—your wealth management is only as secure as your data. – Chongwei Chen DataNumen Inc.
9. YOU DON'T NEED TO THINK ABOUT WEALTH MANAGEMENT FROM THE START.
There is a lot of misconception where people think business wealth management only matters once you're making serious money. Early cash flow management, reinvesting wisely, and keeping your business and personal finances separate can save you from running into issues later in the business journey. Often, it's the difference between just getting by and building something sustainable. – Gianluca Ferruggia, DesignRush
10. WEALTH MANAGEMENT BEGINS AND ENDS WITH INVESTING FUNDS POST-SALE.
The biggest myth? That business wealth management is just about investing the money after a sale. In reality, it's about preparing for the emotional, financial, and family impact of that transition—ideally, years in advance—to avoid surprises and protect what you've built. – Mark Valentino, Citizens
11. A FINANCIAL ADVISOR ISN'T NECESSARY.
The biggest myth that most leaders fail to realize is the value that a competent financial advisor can provide, and that the business leader is capable of doing it on their own. This may be true, but in most cases, business leaders realize what they excel at and understand those areas where they need help and hire the best to be around them. The same is true with hiring a financial advisor. – Richard McWhorter, SRM Private Wealth
12. YOU SHOULD FOCUS SOLELY ON MAXIMIZING PROFITS.
Effective wealth management is about strategically balancing risk, aligning financial decisions with long-term business goals, and safeguarding the organization's economic stability and sustainability. Leaders who narrowly focus on profit maximization often overlook essential factors, such as risk mitigation, succession planning, liquidity management, and tax optimization. – Britton Bloch, Navy Federal Credit Union
13. GROWING YOUR SURPLUS FUNDS IS ENOUGH.
Wealth management is not solely about investment returns; it also involves optimizing cash flow and tax strategy. Focus on maximizing profits and retaining them. Prioritize capturing all available business deductions, optimizing tax efficiency, and maintaining adequate cash reserves. True wealth management begins by maximizing operational earnings and keeping, not just growing, surplus funds. – Joynicole Martinez, The Alchemist Agency
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