Managing Wealth Isn't Limited to the Affluent

Managing Wealth Isn't Limited to the Affluent

In the complex world of personal finances, many people question whether they are making fully informed decisions to manage their financial lives. This is where the expertise of a wealth manager comes into play.

Wealth managers offer a comprehensive suite of services designed to help clients grow, protect, and coordinate their financial lives. These services cover multiple areas, including financial planning, investment management, risk management, and coordination of financial affairs.

In the realm of financial planning, wealth managers develop personalised, holistic strategies to meet life-long financial goals. This could range from retirement planning, tax efficiency, wealth transfer, charitable giving, to protecting wealth against unexpected events.

Investment management is another key service. Wealth managers create and manage tailored investment portfolios that align with the client’s risk tolerance, time horizon, and objectives. This process involves asset allocation, portfolio performance analysis, stock concentration management, and withdrawal strategies.

Risk management is another crucial aspect. Wealth managers identify and evaluate market, legal, liability, and business-related risks to help reduce potential exposure through suitable strategies and asset protection measures.

Coordination of financial affairs is another service offered. This involves bringing together various professionals (accountants, attorneys, tax experts) and services to ensure all aspects of the client's financial life are integrated, well-coordinated, and efficiently managed. This may include estate planning, legal services, business succession planning, and maintaining comprehensive documentation.

Additional services often offered are tax planning, philanthropic planning, retirement planning, business succession planning, and concierge services to handle family meetings and document management.

Choosing the right wealth manager means finding the right fit regarding incentives, ethics, trust, competence, and process. It's an investment in your long-term financial well-being and peace of mind.

Younger generations are increasingly recognising the value of personalised, fiduciary advice from human advisers. Even beyond retirees, wealth managers can benefit individuals navigating significant financial decisions or transitions, such as selling a business, retirement planning, divorce, death of a loved one, or inheritance.

A case in point is a client in her early 30s, who held incentive stock options in a private company. She was unaware of the three-year holding period required for optimal income tax treatment, the potential for alternative minimum tax upon exercising the options, and that her option documents stated she would lose tax advantages if she left her employer.

An objective and unbiased perspective on financial situations and decisions can be beneficial. With a wealth manager, you can rest assured that your financial life is in capable hands, providing you with the peace of mind you deserve.

If you're considering a wealth manager, remember that the CFP Board has a database where you can look up CFPs in your area. By making this investment, you're not just securing your financial future, but also ensuring a brighter, more secure future for you and your loved ones.

[1] CFP Board. (n.d.). CFP® Certification. Retrieved October 14, 2022, from https://www.cfp.net/certification [2] Financial Planning Association. (n.d.). Certified Financial Planner (CFP®) Professionals. Retrieved October 14, 2022, from https://www.fpanet.org/learn/certified-financial-planner-cfp/ [3] Investment Management Consultants Association. (n.d.). Certified Investment Management Analyst (CIMA®) Program. Retrieved October 14, 2022, from https://www.imca-global.org/education/certified-investment-management-analyst-cima/ [4] National Association of Personal Financial Advisors. (n.d.). NAPFA Advisor Directory. Retrieved October 14, 2022, from https://www.napfa.org/find-an-advisor [5] Garrett Planning Network. (n.d.). Find a Fee-Only Financial Planner. Retrieved October 14, 2022, from https://www.garrettplanningnetwork.com/find-a-planner/

1. Technology has greatly impacted the field of personal finance, with many wealth management services now incorporating digital platforms to educate clients about topics like investing, liquidity management, and education-and-self-development.
2. For those seeking professional guidance in their personal finance journey, educational resources, such as the CFP Board, Financial Planning Association, Investment Management Consultants Association, National Association of Personal Financial Advisors, and Garrett Planning Network, can provide tools to find certified financial advisors.
3. In today's technological era, having access to up-to-date financial information and expert advice on issues such as investing, finance, and personal-finance is crucial for long-term liquidity and security, especially during significant life transitions like selling a business or retiring.

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