Why Wealth Management?
April 3, 2021Many of us try to manage our finances without any external help. However, for individuals and entrepreneurs alike, cash flow is rarely simple. Preparing for expenditures like moving home, or putting the family through college, or scaling your business can all cause unnecessary headaches, but wealth management could be on-hand to help out.
Firstly, it’s important to note that wealth management is fundamentally different from investment management. While investment management mostly pertains to selecting the right stocks, bonds and funds to invest in, wealth management takes on a more comprehensive approach.
Wealth managers get to grips with your entire retirement planning and build an investment profile based on where you are in life and what your goals are. For instance, younger clients may find wealth managers allocating riskier, high-yield asset classes such as stocks, whereas older clients may be allocated more stable investments that offer fixed returns.
To help cater to the more personal wants and needs of clients, wealth managers will take on a much more personal approach in order to comprehensively tailor-fit portfolios to their clients.
Wealth managers don’t simply set your funds up and then manage them remotely. They collaborate with your accountants and lawyers to plan your outgoings, such as taxation and insurance requirements. In more mature and developed markets, wealth managers can help industry professionals like doctors take out protective insurance policies to help shield them from patients wishing to sue.
While some professionals may label themselves wealth managers, their job roles extend little beyond the realms of investment management. Because of this blurring of the lines between the roles, it’s important to discuss the level of service that wealth managers offer you.
If you’re looking to optimise your incomings and outgoings alike, it’s worth enlisting the help of a wealth advisor.