Learning how to manage money and build wealth are critical skills to have at any age. Many adults struggle to pay off debt and grow their personal net worth because they do not have a plan in place to work toward achieving these goals. Wealth management acts as a roadmap that encourages the proper placement of money and properties to maintain financial success.
What Is Wealth Management?
Wealth management is a form of financial planning that focuses on investments and growing wealth. This professional advisory service manages the financial assets of high-net-worth clients and advises these individuals on the best ways to increase their net worth through wise expenditure and financial protection. Clients interested in better managing their wealth often turn to managers to gain a better understanding of their finances and assets and how to use these resources to reach their goals.
How Much Money Do You Need for Wealth Management?
Wealth management differs from financial planning as the former requires a significant sum of money to begin. According to Dave Ramsey, the average brokerage firm requires an account minimum ranging from $2 million up to $10 million or more just to qualify for wealth management services. Some wealth management companies offer “stripped-down” services that require a client to have between $250,000 and $500,000 to start.
Why Should You Start?
Wealth managers offer a wide range of services to help clients build wealth and better manage their money. Some of these services include estate planning, investment advice, charitable giving plans, tax and accounting services, an examination of social security and health care benefits, and assistance with selling or starting a business. Millionaires and billionaires are the most likely to require the specialized services of a wealth manager. There are several key reasons that individuals with a high net worth should consider acquiring wealth management services.
It is a Holistic Approach
Most people associate wealth management with money and investment advice. In reality, it plays a role in nearly every part of a client’s financial life. It is considered a holistic approach to money management as it involves many different services to meet the unique needs of the client.
Holistic wealth management addresses spending, saving, debt management, investment management, estate planning, taxes, insurance, government benefits and all other aspects of a person’s financial status. This is based on the understanding that everyone has their own unique needs, and each aspect of a person’s finances needs to be considered when creating a financial management plan.
It May Help Maintain Wealth
Many individuals with a high net worth have worked hard for many years to achieve their incredible level of financial success. However, wealth is not easily maintained without a comprehensive plan in place to prevent financial losses. Wealth management can help clients maintain their wealth by providing services that aim to help them meet their unique financial goals and protect their assets. It services are customized to each specific client. Each solution takes into account the client’s current financial situation and wealth, as well as their future goals. Wealth management professionals are experienced in their field and know how to handle assets in a way that may increase or maintain wealth over time.
It Can Help With Wealth Transfer
When a person builds up a large net worth, they have the responsibility of choosing how to distribute their money, property, investments and other assets when they die. these services include estate planning for this purpose.
Estate planning is the process of arranging who will receive certain assets when a person dies and how much they will receive. Through wealth management, a client can help ensure that his or her wealth is transferred to the proper individuals or organizations. A wealth manager may be able to also minimize the amount of taxes and fees that are paid out on the client’s estate.
It Is Based On The Clients Goals
Wealth management is primarily based on the unique goals of the client. A wealth manager will take into account the client’s short-term and long-term financial goals and what steps are required to reach these goals. It is also important to remember that any changes in financial situations prior to reaching these goals could result in changes to the client’s financial objectives.
A manager will regularly meet with clients to receive updates on financial changes, modify goals if applicable, determine if additional services are needed and review the client’s financial portfolio.
Speak With Wealth Management Services
Working with a company can help ensure that clients are able to actually enjoy their wealth, rather than spending time managing it. Wealth management services are delivered by a team of highly-qualified financial advisors who have in-depth knowledge of a wide range of investment management and financial planning topics. For more information or to get started, contact the professionals at Campbell Wealth Management, Inc.
