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Fast Company
23-07-2025
- Business
- Fast Company
14 myths about business wealth management, debunked
At its core, wealth management is about making thoughtful decisions to grow, protect, and pass on what you've built. For business leaders, that means managing not just personal finances but also how money moves through their companies, covering everything from tax strategy and risk management to succession planning. However, several common and persistent myths and missteps can stall or even hinder your financial well-being. 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, 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
Japan Times
08-07-2025
- Business
- Japan Times
Rural bank in Japan finds novel way to attract talent with higher pay
A talent shortage in Japan's financial industry is becoming so acute that even the biggest banks are struggling to find experienced people. It's tougher still for regional lenders that can't pay enough to lure market veterans away from Tokyo. One rural bank has come up with a creative way to deal with the problem. Yamanashi Chuo Bank has set up an "investment advisory firm' to get around internal salary limits and attract talent to manage its ¥1.1 trillion ($7.6 billion) securities portfolio, said Yoshiaki Furuya, president of the lender. Japanese banks tend to structure compensation plans in a way that makes it difficult to give outsized pay to specific employees. By establishing an in-house company to avoid such constraints, it shows the lengths that a bank like Yamanashi Chuo is taking to bolster its ranks in a market where expertise is running short. "It's very important to secure good market talent,' Furuya said in an interview at the bank's headquarters in Kofu, about a 90-minute train ride from central Tokyo. "We can raise the level by using an evaluation system different from the bank's.' While the compensation may still be smaller than that of big rivals, it's higher than what the lender would ordinarily pay, Furuya said. The advisory firm, which started operating last year, currently has two employees who are giving advice on how the bank should invest a portion of its securities portfolio. In Japan, even small regional banks put billions of dollars into securities like Japanese government bonds and stocks to manage deposit money not used for lending. Furuya said the importance of its market operation is increasing as a profit driver. Furuya said his bank is planning to let the firm take charge of more of its assets, and its headcount will increase in line with that process as it hires more. He didn't give specific numbers for hiring because it depends on how the business works out. It's also seeking to win investment advisory work from outside, such as other banks and nonfinancial corporations, he added. According to Furuya, the bank could have its markets team sitting in Tokyo instead of Kofu — a scenic basin known for its vineyards and views of Mount Fuji — but that would increase the risk of employees leaving for other firms, given the abundance of job opportunities in the capital. Traditionally made up of lifetime employees, local banks are starting to see a greater need for outside specialists who can navigate volatile markets for assets such as JGBs. After being held near zero for years by the central bank, yields on Japan's government debt have shot up, making it difficult for banks to determine when to start buying the bonds. Furuya said Yamanashi Chuo is cautiously waiting for the right time to purchase long-dated notes, which have been under pressure this year. While its JGB holdings more than doubled in the fiscal year ended in March, it mostly bought shorter tenors such as two-year notes, he said. "Building up a portfolio from a long-term perspective to generate stable revenues while avoiding paper losses — it sounds very simple, but it's a challenge,' he said.
Bloomberg
07-07-2025
- Business
- Bloomberg
Japanese Bank Finds Novel Way to Attract Talent With Higher Pay
A talent shortage in Japan's financial industry is becoming so acute that even the biggest banks are struggling to find experienced people. It's tougher still for regional lenders that can't pay enough to lure market veterans away from Tokyo. One rural bank has come up with a creative way to deal with the problem. Yamanashi Chuo Bank Ltd. has set up an 'investment advisory firm' to get around internal salary limits and attract talent to manage its ¥1.1 trillion ($7.6 billion) securities portfolio, said Yoshiaki Furuya, president of the lender.
