Have you reached the point where managing your finances has become overwhelming, or even ineffective? Sooner or later, many high-net-worth individuals need a trusted outside partner to look at their entire financial situation and offer specific guidance on how to grow, manage, and preserve it.
If that sounds like you, it may be time to use wealth management advisory services. Here’s what you need to know before you get started.
What Is Wealth Management?
Wealth management involves working with a wealth advisor to manage and grow your wealth. Typically a good fit for affluent investors, wealth management goes beyond standard financial planning. It includes budgeting, retirement planning, and other financial planning services but also specializes in investment management and estate planning. In other words, while wealth management may cover short-term finances, it focuses on long-term wealth building.
What Are the Primary Goals?
While every individual’s needs are unique to their financial situation, wealth management services share a few common objectives.
Maximizing overall wealth: Wealth management helps you increase your wealth with tailored strategies that minimize threats and liabilities while identifying new growth opportunities.
Managing investments: Your wealth advisor monitors your portfolio, ensuring your investment strategy stays aligned with your financial goals and risk tolerance.
Creating estate planning strategies: Your advisor works with you to develop a plan for passing on your wealth in the smoothest, most tax-efficient manner.
Wealth Management and Financial Success
If you’ve accumulated substantial wealth, here’s how you may benefit from working with an experienced wealth advisor.
Get a Strategic Plan
Whether your goals include building your net worth, retiring early, or something else entirely, a wealth advisor can help you develop the plan you need to achieve them. This usually means combining a comprehensive financial plan with expert investment advice to create a well-rounded, goal-oriented management strategy.
Create Family Security
Wealth management is about growing your wealth and preparing to pass it down to your loved ones. Your wealth advisor will work with you to protect your assets for the future through the strategic use of trusts, insurance, investments, and retirement accounts. Furthermore, they’ll find the strategies that allow your assets to be transferred with minimal tax liability, third-party intermediaries, and other risks.
Lower Financial Stress
Great wealth often comes with significant stress, but wealth management services are there to take some of the load off. In addition to uncovering risks before they impact your long-term goals, a wealth advisor guides you through a wide range of complex financial topics. With their expertise and experience, you will hopefully improve your outcomes and make better decisions when it comes to managing your money.
Choosing Your Wealth Advisor
Choosing a wealth management firm is a significant financial decision, so keep these points in mind during your search.
Advisory Services Offered
Does the firm offer basic financial, tax, and retirement planning services? Or do they cover a wider range of financial areas, such as estate planning and portfolio management? High-net-worth individuals should seek an advisor or firm offering deep and comprehensive knowledge in their areas of need.
Firm Qualifications
In addition to their services, review each firm’s qualifications. Specifically, you’ll want to look for credentials that cover several areas of expertise. Some of the most valuable titles they can hold include Certified Financial Planner™ (CFP®) and Chartered Financial Analyst® (CFA®).
Approach to Wealth Management
Some financial professionals specialize in working with younger individuals, while others focus on retirees. Some focus on long-term planning, and others on short-term strategy. Some specialize in taxes, while others specialize in legacy planning. Whatever your goals and needs may be, make sure they align with the philosophy of the firm you’re interested in hiring.
Ready to get started with a wealth management firm that offers the services, expertise, and customer-first approach you need? Connect with us today to create your comprehensive plan.
