Money and assets are two of the hardest resources to manage! You have more than you can spend one minute, and the next, you are pinching pennies. Learn how wealth management can save the day!
Defining Wealth Management
Wealth management is a comprehensive service that redefines a person’s financial outlook. It is considered a high-end service that encompasses financial planning, investment management, tax planning, and estate planning. Wealth managers help medium to high-net-worth individuals and organizations manage their cash and physical assets and oversee a seamless transfer to designated heirs.
They play an all-important role distinct from a financial advisor whose sole interest is financial planning or investment management. Wealth management services include financial planning along with tax and accounting services, estate planning, legal services, retirement planning, and philanthropic planning.
How Wealthy should you be to Consider Wealth Management?
There isn’t a clear-cut rule that defines the amount of money required to warrant the services of a wealth manager. Individual wealth managers and firms typically fix minimum amounts, and the amount stipulated by firm A might differ from that required by firm B.
Nonetheless, you should have a minimum of $2 million to $5 million in assets to engage the services of a wealth management firm. Any amount below this might not be considered for this high-end service.
Wealth Management Strategies
Expectedly, wealth management relies on strategic devices to accomplish set goals. However, the strategies employed differ from one manager to another. Generally, methods are dependent on clients’ specific needs — they are customized to the client’s requirements. Overall, wealth managers devise strategies that factor in a client’s financial overview elements, such as tax records, investments, and retirement plans. Here are some methods that wealth management firms use to create a comprehensive wealth management solution:
Creating an investment strategy that includes all investments made by the client and their retirement accounts
Preparing an estate plan that suits the wishes and preferences of the client
Developing succession and sustainability plans
Incorporating tax planning into financial plans
Signs of a Good Wealth Manager
A seasoned wealth manager or wealth management firm has the following qualities:
- Possess professional certifications such as CPA (Certified Practising Accountant), CFA ( Chartered Financial Analyst), and CFP ( Certified Financial Planner).
- Has proven experience and track record in wealth management and other related fields
- Offers a broad range of financial services with in-depth expertise
- Has excellent communication skills, keeps on time, and practices professional etiquette
Before hiring a wealth manager, you must confirm the following qualities and ensure that their expertise covers your specific needs. Some wealth management firms deal with certain assets, and your assets may not fall within their scope. Also, your circumstances may not suit the type of clients they handle.
For instance, a firm may only work with individuals whose net worth is above 5 million dollars, so if your assets are valued at 2 million, you will burn precious time consulting such firms—perform due diligence before contacting wealth managers or wealth management firms!
The TakeawayEngage in the services of prominent wealth management firms or individuals to help maximize and safeguard your valuables and preserve them for future use. At SiDCOR, we offer premium wealth management and advisory services, including asset allocation, personal budgeting, property consulting, investment management, and tax planning.