A couple who sought financial advice from Regency Wealth Management was shocked to learn that their paper sack full of documents included a $250,000 investment they had no idea they owned. “It was a really nice surprise for us and for them,” Mark Reitsma, Partner at Regency Wealth, said.
The due diligence process undertaken by Regency when working with new clients includes a full review of each investor’s assets and liabilities. In this case the team at Regency began to ask more questions when they discovered unexplained dividend income on their income tax return. The accompanying investment wasn’t displayed on any of the paperwork they had brought to the meetings.
Now that the investment is under management, it will be put to more considered use–diversified to better support the couple’s long term goals, Mr. Reitsma said. But, lost earning opportunities aren’t the worst case scenario when investment documents are misplaced. If an account lies dormant for too long, the state could take custody of the capital and hold it indefinitely until it is reclaimed. Another danger is that children or heirs can be left without the information they need to easily settle estates.
Investors need to maintain a clear understanding of what they own, so that they can see and understand how their securities are working together to support financial goals, Mr. Reitsma said. For many people, connecting with a wealth manager is the most efficient and thorough way to accomplish this task.
“We were happy to get this investment out of the bag and put to better use on this couple’s behalf,” Mr. Reitsma said.