Common Questions
Neil Jesani Wealth Management (NJWM) Seems Relatively A New Company, Why Should I Trust You? What Is Your Credibility?
Although we are new to the Dubai market, our founder, Neil Jesani lived in Dubai from 1995 to 2000. In 2000, he immigrated to the United States, but he has been in the investment world for more than 27 years. While he was in Dubai, he worked for a well-known bank in the investment division, so he has not only the current market knowledge of the UAE and GCC countries but for the last three decades. That is being said, there always some risks so let’s go over them individually as below:
1) What if NJWM loses your money?
While this could happen here, this is also true for local banks, other firms, and European banks. In the investment world there are risks involved. There is no guarantee unless you invest in a safer or guaranteed product. If the advisors or firm loses money in the investment, then you will lose that money.
2) What if NJWM Closes office in Dubai or Files for bankruptcy?
First, our founder, Neil Jesani loves Dubai. Even though he is an USA citizen and spends most of his time in USA, he is also Dubai resident with 10 years of Golden visa. His family enjoys their apartment in Burj Khalifa residence.
Second, when you work with NJWM, you never write a check or transfer the money in the name of NJWM. When you open an account, it is opened with one of three custodians - Charles Schwab, Interactive Brokers, and U.S. Bank. Whenever you are investing with us, you are essentially giving the money to these institutions. Charles Schwab was established in 1971 and is the largest publicly traded investment services firm with around 8.88 trillion USD in client assets, serving more than 35 million accounts. Interactive Brokers was established in 1983 and currently has more than 448 billion USD in client assets. U.S. Bank was established in 1863 and currently has more than 663 billion USD in client assets. It is also 5th largest bank in USA and 149th of USA Fortune 500 corporations.
Finally, if NJWM were to close the office or to file for the bankruptcy, your money is still with these custodians as NJWM cannot withdraw or move your money. Only you, as the account holder, can withdraw or move this money with your signature.
3) What if these custodians were to file a bankruptcy?
While this is rare, it can happen. However, with Charles Schwab maintains “excess SIPC insurance protection up to 600 million USD per account and similarly Interactive Brokers maintains up to 150 million USD per account and U.S. Bank maintains up to 60 million USD per account. The only time you run into a problem is if you have more than the above limit amount with that particular custodian, which is why NJWM uses multiple custodians so that your full account amount is protected. NJWM will stay within the insurance limit.
How Are You Getting Paid?
Why Minimum 5 Million USD (18 Million AED) To Become Neil Jesani Wealth Management (NJWM) Client?
Firstly, we believe investment and wealth management is very competitive and demands a very high degree of analysis as you are competing with the best of the best on the entire planet. So, it requires not only amazing skills but also lots of analysis. The comprehensive and detailed analysis will require lots of time.
Firstly, if you do not limit the minimum size of the investment portfolio then, you must acquire many clients to make a decent living. That is why most of the financial planners, investment advisors, relationship managers, consultants, or whatever fancy title they use, they are all salesperson (rather than true investment professionals) working hard every day to acquire new clients and gather more assets. They ended up spending much of their time in the business development activities rather than analyzing investments and your portfolio. We want to use the business development activities time to analyze and manage our clients’ investment portfolio daily. We review with clients their investment portfolio monthly or sooner based on their preference.
Secondly, we have assembled in-house the highly skilled and experienced team of CPAs, Attorneys, EAs, CFAs, and CFPs for the advanced income, estate tax, financial planning, and asset protection strategies. Their skill, knowledge and time are focused on the ultra-high net-worth clients’ planning opportunities. They can create tremendous amounts of tax savings and help create substantial additional wealth, but these strategies only work for the high-income and ultra-high net-worth individuals.
Thirdly, our 3D Universal Asset Allocation Strategy is very heavy on alternatives investments such as hedge funds, private equity, venture capital, private real estate, and private credit. We have access to hard-to-find and top tier institutional grade investment opportunities but most of them require a minimum of $500,000 to get into their opportunity and investor needs to be a “Qualified Purchaser”. The most people are familiar with the term “Accredited Investors”, and this requires $1 Million in net-worth or $200,000 in annual individual income and $300,000 in joint income. While the qualified purchaser status requires a minimum of $5 Million investment portfolio.
How Are You Different From Other Wealth Management Firms Or Banks In GCC?
We are different from other firms in Dubai on multiple levels. First are our fees and how we charge. Since we are registered investment advisors, and are governed by US security laws, we are ONLY allowed to get paid as a fee. We are not allowed to take commission. Not only are we fee based, but our rates are much lower than any other fee-based provider firms in the GCC. Most of the time, fee-based providers claim that they are fee only, but they are in a hybrid model, meaning that they will charge you a fee upfront and collect commission on the backend side from the custodian. NJWM is truly one of the only fee-based wealth management firms in the GCC. NJWM does not collect any commission from their custodians, does not get any kickbacks and we are regularly audited by US regulators.
The way firms get paid, drives their behavior. If you were to go to a firm that is only commission based, their behavior will be to essentially sell you more and more new investments so they can earn more commission. Secondly, our minimum investment amount is 5 million USD (roughly 18 million AED). This sets us apart because other banks/firms do not have a limit on the amount needing to be invested. By having a requirement of 5 million USD, NJWM can give a lot of attention to our clients and their portfolio because we are not dealing with every different type of account size. Furthermore, the opportunities we have in our alternative space, by US law our clients need to be qualified purchasers. To be a qualified purchaser you need to have a 5-million-dollar portfolio to even have access to the opportunity and be able to participate. Thirdly, our investment philosophy sets us apart from other firms in Dubai. Since we are based in the USA, we follow the USA philosophy in terms of investment and have access to funds/opportunities that many other banks have access to. NJWM believes that one should not give more than 30% into stocks or stocks-based products. NJWM believes in being heavy into alternatives (70%) such as but not limited to hedge funds, private equity, venture capital, private real estate, private credit, and commodities. Finally, our main difference between NJWM and other firms is our people on staff. Most of the time, investment advisers act as salespeople trying to find ways to acquire new accounts/clients. Our staff includes CFP’s and CFA’s and are true analysts as they do not have any sales quotas to reach. Our team solely focuses on the performance of your portfolio and gets you the maximum return.
How Are You Different From Other Wealth Management Firms Or Banks In The USA?
As a boutique firm, we do not have high revenue targets or sales pressure as other large investment firms or wealth management companies, and we limit whom we accept as our client. Since NJWM only services ultra-high net worth individuals with minimum of 5 million UDS in investible asset, we can devote lots of time to each individual client and come up with the products and strategies that big companies simply can’t do. The talent we have on staff is another key difference between NJWM and other firms in the USA, because we have highly experienced tax attorneys, tax accounts, and estate planners on staff, allowing us to create a holistic plan. We do not outsource any of our work to external accounting or law firms and are able to work together as a team. Typically, other firms in the USA only have investment people on staff, while NJWM focuses on having not only very talented investment professionals but also tax, accounting, trust, and estate professionals.
What Licenses Do You Have?
We are a Registered Investment Advisor (RIA) firm headquartered in Florida, USA. We have our business license and securities registration with Florida, USA. We also have rep office LLC license in Dubai, UAE.
Call/Text: (954) 800-0460
invest@neiljesaniwealth.com
HEADQUARTER: 1300 Sawgrass Corporate Parkway, Suite 130, Sunrise, FL 33323, USA
REPRESENTATIVE OFFICE: 1406 Exchange Tower, Business Bay, Dubai, UAE
DISCLAIMER: Neil Jesani Wealth Management LLC is a State Registered Investment Advisory firm. The purpose of this website is to provide general information on the subjects discussed, it is not intended to be used as the sole basis for financial decisions, nor should it be construed as advice designed to meet the particular needs of an individual’s situation. Neil Jesani Wealth Management LLC is an entity separate than that of Neil Jesani Advisors Inc. Investing involves risk, including the potential loss of principal. Neil Jesani Wealth Managements registered financial advisor representatives are authorized only to conduct business with residents of the states and/or jurisdictions in which they are registered. Here is the link to our ADV.
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