Wealth management is the comprehensive approach to your finances, that involves managing your investments, financial planning, tax planning and estate planning. People consider it a high end service and many firms require that their clients have a certain amount of money to be eligible for this service. If you need this service, it can be a great option to consolidate all of your financial planning needs under one firm.
1. It Is Tailored To Your Objectives
Every investor will have different objectives. Since you have a unique financial situation, your wealth manager will tailor your plan accordingly. Some of the most common objectives include:
- Setting your financial goals
- Maximizing your wealth
- Managing your investments
- Estate planning
2. There Are Alternatives
According to wealth manager Frederick Baerenz, when the fees are too high or you don’t meet the minimum asset requirements, this is probably not the best option for you. When this is the case, you should consider one of the alternatives, such as working with an online company that has lower fees and asset minimums or going with standard financial planning services.
There are also plenty of websites and apps that offer in-depth financial planning that gets close to wealth management’s level of comprehensiveness. Additionally, robot advisors are often cheaper and are a great alternative if you’re not ready for a traditional wealth manager.
3. How To Pick a Manager
If you are ready for a wealth manager, Fred Baerenz recommends that you pick out several firms to visit before deciding on someone. This is the most challenging part of the process. Depending on where you live, there could be dozens of firms or none to choose from. The best things you can do to find a good wealth manager are to ask for recommendations from family and friends, look for ads in financial publications and search for nearby firms online.
Financial planning can mean different things for different people. There are financial planners out there that can help most people. However, higher net worth individuals should look into wealth management for a comprehensive experience.