There’s a problem with digital assets: nearly everyone owns them and their value can be substantial.
Yet they’re so new as an asset class that few people are fully cognizant of their holdings. Perhaps worse, many advisors lack the savvy to ask the right questions to help clients locate and protect them. Our linked article provides a nice primer to get you moving in the right direction.
Our author contends that the average client holds at least 90 digital assets, yet may be unaware of what they are, where they are virtually located or how they should be valued.
What are digital assets? The list is long and expands every day. Documents in electronic format, copyrights, email, digital photos, blogs, videos, social media accounts, even gaming platforms all have value. All sorts of online accounts exist, with PayPal only the most obvious. Our list is growing and we haven’t even ventured onto the blockchain to consider cryptocurrencies and the huge spectrum of assets that can be purchased and held there.
Begin by writing up a laundry list. Step by step, identify where the client is active online. Accounts with start to appear, along with cloud platforms that hold valuable documents and other assets. Account for all digital devices owned by the customer, including home computers, laptops, tablets, phones, external drives, SD cards, gaming consoles – again, there’s a long list. Vitally, online accounts must be documented and login and password information securely recorded.
Credit card and bank accounts call for particular care. People usually pay their utility and phone bills online, not to mention mortgage, insurance and car payments. A lot of imagination will be needed at first, but it’s really a practical matter: let your own life act as guide. As a side effect, you may find you’re holding valuable assets of your own – without quite realizing.
For more information, please read:
What You Need to Know About Managing Clients’ Digital Wealth | Wealth Management