Managing finances can be challenging, especially as a person’s net worth continues to grow. Private wealth managers can help clients better manage their finances, select optimal investments and make good money decisions. There are certain scenarios in which a person should seek out the assistance of a private wealth manager.
What Is A Private Wealth Manager?
Private wealth management firms offer a wide selection of services to wealthy individuals, such as financial planning and portfolio management. A private wealth manager may help a client to set up a trust or foundation or manage planned giving to lessen the estate tax burden on heirs.
Private wealth managers also provide other key services, such as investment advice, tax services and social security planning. After meeting with a private wealth manager, a client will discuss goals and develop a better money management strategy.
When To Seek Out A Private Wealth Manager
Hiring a private wealth manager is not a suitable option for everyone. It is important to consider net worth, financial goals and similar factors when determining if a wealth manager is a viable solution. Here are some key reasons why a person may seek the assistance of a private wealth manager.
You Have A High Net Worth
Private wealth managers involve the management of clients’ assets with a high net worth or an ultra-high net worth. Unlike most financial advisors that assist people of all income levels, private wealth managers generally only take on clients who have a net worth over a specified amount.
High net worth individuals generally include people with a minimum of $1 million in liquid financial assets. Clients with more than $30 million in investable assets are considered to have an ultra-high net worth. For clients with a high net worth or ultra-high net worth, hiring a private wealth manager is an excellent option.
You Don’t Want To Stress With Managing Your Money Yourself
Managing money and investments can be highly stressful, especially for wealthy clients. While some wealthy people enjoy managing their own money, others find it a stressful experience that takes too much time and effort. Hiring a private wealth manager is a great choice for these clients.
There is no substitute for the knowledge an experienced wealth manager. Clients that put their finances into the hands of an experienced wealth manager can eliminate the stress of money management and rest easy knowing that their finances are being well managed.
You Want To Grow Your Money
Not all clients have the same goals when they seek out a private wealth manager. Some clients simply want to maintain their wealth, while others want to grow their money actively. Building wealth involves a strategic plan that focuses on using the right investment vehicles to grow wealth with little risk. This can be difficult to attain without the guidance of an experienced wealth manager.
Wealth managers may have experience with, and collaborate with professionals in many financial disciplines, such as legal law, accounting, estate planning, retirement planning and tax services. All of these disciplines can be of use when developing a strategy to build wealth.
You’re Thinking About Retirement
Working with a private wealth manager can be highly advantageous during the retirement planning process. Having all finances in place before retirement is key to having a stress-free retirement. Even people who plan to have a regular income or salary during retirement may need assistance in building a fund to pay for upkeep and eventualities.
A private wealth manager can help a client create a retirement plan based on their unique goals and cash flow. The aim of a retirement plan should be to not only cover basic living expenses but also to allow clients to pursue their hobbies, purchase a vacation home, open a business or reach other important retirement goals.
What To Look for In A Private Wealth Manager
Choosing a wealth manager is not an easy decision. Clients need to choose a professional that they can trust and work with for the long-term. The right wealth manager should be experienced, transparent, thorough and willing to address any questions or concerns that arise.
It is also important to consider the firm’s business model. The structure of their platform and their core business strategies will ultimately impact how well a client’s wealth is managed.
Work With A Private Wealth Manager From Campbell Wealth Management
Making the right money-related decisions can lead to financial stability and the potential of increased wealth, while the wrong decisions can wreak havoc on a person’s finances. Working with a wealth manager can help individuals with high net incomes better manage their money and plan for the future. For more information about the key benefits of hiring a wealth manager request a consultation with the professionals at Campbell Wealth Management.