Wealth management is a high-level service aiming to improve your financial situation in both the short and long term and protect you from potential challenges down the road. A wealth management advisor helps you with investments and financial advice, but also also offers assistance with taxes and accounting, retirement planning, and legal or estate planning. A wealth management plan will look different for every person, and will depend on your personal goals, circumstances, and priorities..
How Wealth Management Works
It’s important to understand that wealth management entails more than just investment advice; it can cover all aspects of your financial life. The advantage of working with a wealth manager means you have one person coordinating every component of your finances—from investments to educational planning for your children to estate planning and everything in between. This approach is more streamlined and also generally more affordable than having to navigate between different services and organizations for each category.. Wealth management services can include the following:
- Asset portfolio management
- Equity holdings
- Profit sharing 401k
- Philanthropic aspirations
- Estate planning
- Wealth distribution
Good wealth management is centered on the client and is delivered through in-depth consultations in which your wealth manager aims to get to know and understand you, while helping you determine your own specific priorities and needs. This way, your wealth manager will be able to provide you the financial solutions appropriate to your unique situation.
Ensuring Productive Wealth Management
To make your wealth management experience more rewarding, it pays to be aware of the potential pitfalls. For instance, you shouldn’t go through it alone. Make sure to involve your family in the process and make them privy to your overall plans. This allows for thorough discussion, ensuring all members of the family are on the same page. You also need to be clear on what you want to achieve. Having clear financial goals can prevent mistakes, particularly in asset allocation, ensuring you enjoy consistent positive results. A clear objective can come in many forms, including a college fund for your child, a newer home, or your retirement.
Want to learn more about wealth managers? Stay tuned for Part 2 of this blog series where we will be discussing in detail what wealth managers actually do to help you achieve your financial goals.