Wealth management is a type of financial advice that focuses on creating sustainable long-term returns for clients. This includes potential income, growth, and independence for many years to come. We know the hard work people put into saving and investing for years as they prepare for retirement and other financial goals. We also know that most people are qualified to make financial decisions, but as a nest egg grows there are unique opportunities and challenges that would benefit from a more tailored approach a wealth manager can offer.
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What Is Wealth Management?
You may wonder what sets wealth management apart from financial advising. They both shape personalized financial plans based on a client’s goals. The overall objective is to reduce financial risk while continuing to preserve and manage a client’s nest egg and potentially work toward their financial vision. The difference, however, is wealth management is specifically designed to help clients of high-net-worth. A wealth manager has experience in large volume portfolios, estate plans, tax strategies, and the knowledge of how to preserve wealth over the long term for there to be a continuous return for generations to come.
What Does a Wealth Manager Do?
A wealth manager’s job is to continue to pursue wealth with their client’s direction leading the way. They offer an exceptional business combining many individual services together to address the demands of high-net worth wealth individuals. They are a niche in the world of financial advising and hyper focused on affluent clients to make money work harder for them — a team that is there for your future self and vision.
Common Services Offered
Wealth managers are versed in many services that cover a range of topics. However, each have their own specialties. The wealth manager can serve as a contact point for financial specialists that work toward getting the most credible information for their client’s services. Some of the services a wealth manager offers are:
- Retirement planning
- Estate planning
- Investing strategies
- Investment management
- Tax services
- Financial planning
- Guided wealth portfolios
How Does a Wealth Manager Help?
Every client has unique needs for their finances. There truly is not a one-size-fits-most approach when a wealth manager considers a portfolio, estate planning, financial goals, and the overall wishes of a client. The following are strategies used to craft a plan that makes the most sense to a client.
Listen and Plan Goals
Nothing feels worse than not being heard, and this is especially true when planning for your financial future. A wealth manager will get to know the client’s background and their goals. They will take this information and organize it in a way that the team can get to work on resources and craft a plan to make the ideas become a reality.
SMART Goals
After taking all the information into consideration, a good wealth manager will help the client prioritize short-term and long-term goals, as well as targets to keep the focus clear. The most effective way is for the wealth manager and client to facilitate SMART goals.
- Specific
- Measurable
- Attainable
- Realistic
- Time-bound
Budgeting
The first step to obtaining goals is to set a reasonable budget to live in. It can be difficult to create and stick to a budget. A wealth manager can take you through the steps to make this possible while keeping your SMART goals in focus, the main drive behind having a budget.
Strategize Investments
A wealth manager, like financial advisors have knowledge on how to pick and choose which investments are right for the client. Wealth managers are sought out by affluent clients as they have expertise in diversifying and minimizing risk with high-net-worth portfolios.
Insurance Strategy
Insurance should not be overlooked in any part of wealth management. It may be the simplest part of the strategy process, but is not overvalued in the least. Clients who have worked hard for their money, invested in all the right ways, and have watched their nest egg bloom should have a proper evaluation of what insurance coverage is right for them.
Insurance can protect individuals and their assets from financial liability in the event they are sued for injuries, damages, etc. A wealth manager can advise a client or be the point of contact for an insurance agent who can get them fitted for the insurance that makes the most sense for the client and their assets.
Taxes
Paying taxes is something we all do. When a client has a high value net worth and a large income, they are inevitably paying more in taxes. A wealth manager can help strategize so they are not paying a dollar more than the bottom line in taxes.
Estate Planning
Good estate planning is a necessity in wealth management. When a client with intricate assets and complex portfolio passes, there is much more to be considered. It is never an “if” but rather a “when,” the estate plan will be used. A client needs to set their affairs in order, including clear documentation on how to divvy assets after passing away. This will save the family from the heartache of navigating these decisions during a painful time.
Tips for Finding a Wealth Manager That is Right for You
When looking for a wealth manager, it is understandable and even encouraged to shop around. It is ideal to shop for a wealth manager who aligns with your lifestyle and vision for your future. After all it is yours, and you should feel confident and comfortable in how your money and plans are working for you. There are several things to consider as you make your decision.
Location
For many, it is important to meet face-to-face to discuss financial plans. They want to know their wealth manager on a more personal level, look at what has been drafted up, and ask questions in person. Also, when people meet with someone local who has clients in a similar industry as theirs, it may bring comfort as they have familiarity of the financial offerings and benefits their field has to offer. However, some people prefer the ease of virtual communication.
Skip the Salesman
You don’t need a salesman to fill the role of wealth manager. You want someone on your team that is a co-chair in the decision making. Look for a wealth management team that values your time and is transparent with their fees and investment strategies.
Fiduciary Obligation
Lastly, when screening for a wealth management team, research if they abide by a fiduciary obligation. This aims the team to act in a way that will benefit the client first and foremost. The legal responsibility binds them to:
- Always put clients’ interests first
- Provide accurate, thorough information
- Never using a client’s assets to benefit themselves
- Act with integrity and honesty
- Communicate and provide objective guidance
Ready to Get Started
If you are in the beginning phases of planning for retirement or know that it’s just around the corner, it is never too soon or too late for a wealth manager to help you. We know strategizing your money and accomplishing your financial goals can be time-consuming and overwhelming. We are here to help you at Marvel Wealth Management.
Want a wealth manager that works alongside you? Contact us today.
" The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All investing involves risk including loss of principal. No strategy assures success or protects against loss. "