Wealth Management Advisor | What They Can Do

Manage Your Wealth With An Advisor

At some point in your adult life, you may have considered getting to know how you can plan out your long-term wealth and finances. Managing your assets white and black abstract illustrationand making them grow starts to become more and more important as the years pass by.

Activities that can make your wealth grow more are best handled by a wealth management advisor. Here are some of the things they can do and how they can help you with your finances.

What is Wealth Management?
Wealth management is a set of services made specifically to help you grow, protect, and utilize your wealth properly. It covers a broad range of services such as investment advice, estate planning, and retirement planning. It can encompass all aspects of a person’s financial life and capacity. Generally, there are two ways to handle wealth management:

  • Collaborative Approach – The firm will work closely with a client as a hub of a team of advisors.  The Certified Financial Planning (CFP) professional can provide the necessary financial planning processes and investment management. They can also be in talks with the individual or family’s other important advisors.
  • Single Office Approach – This is a common wealth management approach used by big banks and brokerage firms. The wealth management team will have a specific staff that dealing with investments, another one focusing on risk mitigation, and so on. These groups are called the family offices.

In North America, the term wealth management typically means that the client has a liquid net worth of at least $250,000. But some of these companies have available programs for clients with $100,000. Many wealth management companies prefer having clients with more than $500,000 in investable capital.

What’s A Wealth Management Advisor?
A wealth management advisor is someone who can help an individual manage their assets by taking a holistic approach to handling and dealing with money. Their clients are typically those who have a high net worth since they have to deal with a lot of money, property, and assets. Wealth managers offer more services compared to financial advisors. Some of their services include the following:

  • Investment and Risk Management – a wealth advisor works with you by providing the right investment strategies to help you reach your financial goals. A major part of any investment plan is to manage or mitigate all of the risks involved over time. It can include having enough insurance for your financial investments to minimize the risk.
  • Real Estate – when it comes to property and real estate, wealth advisors have the right skills, experience, and impact in helping you manage portfolios with valuable real estate. They can also help you with regards to cultivating your real estate’s market value and increase its returns as an investment. 
  • Tax Planning – although wealth management advisors do not offer any tax advice, they can coordinate with your attorney or accountant for it. They do this so you can strategize your payments for tax efficiency. 
  • Estate Planning – Many advisors help out in estate planning. Wills and testaments aren’t the only things involved when it comes to planning out an estate. Setting up trusts and beneficiaries is a part of it as well. By cooperating with a wealth management advisor, disagreements when it comes to inheritance can be avoided by the family.
  • Retirement Planning – Sometimes, pensions aren’t enough for retirement plans. Since retirement is an important financial decision, having a wealth manager on board to aid you in investments is a great idea. Wealth management advisors can help allocate funds and diversify your portfolio. When the time comes, you can retire with peace of mind.  

When Do You Need a Wealth Management Advisor?
It all depends on what kind of financial decision you have to make and your current financial status. Major financial decisions like real estate investments and estate planning require the aid of an advisor. Wealth management advisors prefer working with a person with high net worth and who wants comprehensive management of their finances. 

If you ever needed assistance and guidance in estate planning or if you are planning on investing, getting professional help now can assist you in keeping your assets later on. Hopefully, you’re now more familiar with their function and how you can benefit from having them.