Wealth Management

What is Wealth Management

Wealth management is a service typically required by wealthy, affluent, and high-net-worth individuals. It involves a holistic financial plan which grows and preserves an individual’s wealth, passing it on to the next generation. Wealth management is not only focused on one financial service; it includes services like estate planning, retirement, tax services, investment advice, and a personalized strategy that meets the client’s needs. This financial service is carried out by a wealth manager, wealth management advisor, or wealth management consultant.

What is Private Wealth Management

Private wealth management is a wealth management service typically required by high-net-worth individuals. As opposed to the general financial services carried out by wealth managers for both high-net-worth individuals and corporations, private wealth management is majorly for individuals. These high-net-worth individuals have about $1 million in liquid assets. In order to navigate the financial world, grow their wealth, and stay wealthy, high-net-worth individuals (HNWI) need the services of a private wealth management advisor.

What is a Wealth Management Advisor

A wealth management advisor or wealth management consultant is a licensed financial advisor who plans and strategizes how to preserve and grow the wealth of their clients. A wealth management advisor is knowledgeable about investing, tax planning, insurance, real estate, etc., and is willing to use the information about the client’s financial goals and present wealth condition to give investment advice and re-evaluate future financial decisions. A wealth management advisor can be hired by HNWI, banks, financial institutions, corporate organizations, and financial advisor firms. Wealth management advisors can sometimes be confused with financial advisors, but they take on different roles. While financial advisors offer financial advice and services to their clients, wealth management advisors are more specific as they offer in-depth and advanced financial services to HNWI, making wealth management advisors more knowledgeable in individual or family wealth because it is their area of specialty.

What Does a Wealth Management Advisor Do?

Wealth management advisors or wealth management consultants offer a wide range of financial services for their clients. Some of these include:

Managing Investment Portfolios: Wealth management advisors develop and evaluate clients’ investment portfolios. They advise clients on good investments to make, monitor portfolio performance, and create workable investment strategies.

Retirement Planning: Wealth management advisors help clients create a retirement savings plan and can help ensure the client meets their retirement goals. They measure their progress and ensure they are on the right track.

Creation and Implementation of Tax Strategies: A wealth management consultant can help clients reduce tax payable with tax strategies like strategic asset transfer, asset location, etc.

Estate Planning: A wealth management consultant updates the estate planning documents of their clients each time there is a major change in their life (e.g., the birth of a child, illness, etc.) or a recent accumulation of assets. They also draft their legal documents and minimize estate taxes.

Insurance Planning: A wealth management advisor reviews a client’s existing insurance policy and offers guidance on the right insurance coverage that fits into the client’s long-term financial goals.

Do I Need a Wealth Manager?

If you already have a financial plan or you don’t have one at all, and you need a comprehensive service on how to navigate investment decisions, tax liability, retirement, estate, and insurance planning, you might need a wealth manager. You should use a wealth manager if you are an HNWI with many assets, and you need an asset manager and financial advisor. If you are trying to make the right decisions concerning your wealth, like how to grow your wealth, protect your legacy, and create a retirement savings plan, it can be a hassle doing it all by yourself. Hiring a wealth manager to help you through these processes can be very beneficial. If you are about to make a big financial move, like buying a home, investing, or early retirement, you should also consult a wealth manager.

How Do I Choose a Wealth Manager?

As an HNWI, you will probably get a lot of requests from wealth managers to work with you. And since you typically only get to work with one wealth manager, it is important to know the criteria to look for when choosing a wealth manager.

Level of Commitment: A wealth manager will not just manage your asset; they carry out a lot of other roles, including interacting with your family and business partners. When choosing a wealth manager, look out for their level of commitment. You can notice this in the first interview by the questions they ask and how interested they are in your financial vision and not just in the amount they stand to gain.

Financial Knowledge and Education: While financial knowledge and education are not final determining factors for a good wealth manager, they are very important. A wealth manager handles quite a lot of responsibilities which include giving advice on diverse financial topics. Even if they eventually hire a team of experts to work with you, they should still possess adequate knowledge about topics like investment, estate planning, retirement, taxes, etc., and guide you in your decision-making process.

Evaluation of Financial Situation: A good wealth manager should be able to thoroughly evaluate your present financial standing, future goals, investment portfolios, tax situation, and retirement plans. They’ll also help you develop strategies to limit tax liability, help you invest, and achieve your financial goals. Other qualities to look for in a wealth manager are trustworthiness, investing experience, and the ability to communicate stringent matters and explain difficult financial terms.

Wealth Management Advisor in North & South Carolina

If you are looking for a wealth management consultant or advisor in North & South Carolina, contact us at TruNorth Advisors. We will meet with you and get to know your goals and visions for your finances. We’ll then evaluate your financial standing, then create and implement a personalized strategy for how you can achieve your wealth and retirement goals. Contact us today to get started!