Coordinating wealth

Wealth coordination is about more than investing alone

Anyone who thinks wealth management is all about achieving the highest return is mistaken. For high-net-worth individuals, the real challenge is this: who keeps an eye on the bigger picture and ensures that all elements are properly aligned?

After 25 years at ABN AMRO and Credit Suisse in the Netherlands and Switzerland, Jan Roelof Boerlage founded Affluent as an independent wealth coordinator. Today, Affluent supports clients throughout the Netherlands in managing and coordinating their total wealth.

Without being tied to a bank, proprietary products, commissions or financial incentives to recommend certain solutions. “What you do simply has to make sense,” he says. “We don’t need to sell anything. Our role is to ensure that all elements of a client’s wealth are optimally aligned.”

A coordinator, not a salesperson

High-net-worth individuals typically work with a bank, an asset manager, a tax adviser, a notary and sometimes a private equity firm. Each party focuses on its own area and, as a result, may lose sight of the bigger picture. Affluent positions itself as the party that maintains the overall view and creates cohesion.

“We act as the coordinator. We select asset managers, monitor them and bring all elements together, from liquid investments to real estate and private equity,” Boerlage explains.

That overview starts with a thorough assessment. Clients do not always have a complete picture of their total wealth position. A family business, a second home and private equity interests may together form a substantial portfolio spread across several institutions. Affluent consolidates everything into one clear and transparent dashboard.

“I once had a client who said: ‘I feel as though I’m looking at someone else’s financial overview.’ I replied: ‘But it really is yours.’ We see this regularly among entrepreneurs who have sold their businesses, as well as families managing wealth across several generations.”

Our role is to ensure that all elements of a client’s wealth are aligned.

Effort, not assets

Affluent’s fee model differs fundamentally from the market standard and underlines its independence. Clients do not pay a percentage of assets under management, but a fee based on the amount of work involved and the services actually provided.

As a result, Affluent has no financial interest in choosing a particular bank, asset manager or investment solution. Any fees received from third parties are passed on entirely to the client.

“Competitive fee arrangements negotiated with banks, asset managers and other parties benefit the client in full. In this way, the cost of our own services can be partially or even fully offset.”

Wealth with a plan

Wealth coordination often starts with a financial plan. This identifies objectives, future cash flows and risks, providing a framework for structuring the client’s wealth.

To achieve an optimal allocation, Affluent works with three-time horizons: short, medium and long term. Once short-term liquidity needs have been secured, the remaining long-term assets can be invested in products with more limited liquidity or a higher level of risk.

Boerlage explains: “This provides peace of mind and a clear overview, helping clients make better-informed decisions about their total wealth.”

As tax legislation continues to change, integrated wealth coordination is becoming increasingly important. Taxation, investments, estate planning and liquidity can no longer be viewed separately.

This requires an adviser who understands the complete picture and can respond to changes in a timely manner.

“That is precisely where our role lies: bringing all the different elements together and ensuring that they are aligned with what the client ultimately wants to achieve with their wealth.”

Sources: Affluent, FD, CHATGPT for translation