Selective Wealth Management and Its Benefits – PillarWM

Is your tax bill increasing year after year? Are you finding it challenging to create the perfect investment portfolio to attain your financial targets? Do you struggle to find time to manage your assets and wealth properly? If you answered yes to any of those questions, it’s time you hire a selective wealth management firm to grow your wealth, secure your assets effectively, and help you attain your financial goals. Working with the right financial advisor and wealth management firm is essential for high net worth and ultra-high net worth individuals with liquid assets worth $5 million and more. This is precisely why we recommend you read our ultimate guide on choosing the best financial advisor to learn how preserving your money can allow you to live a worry-free life!

In fact, if you’re searching for the top selective wealth management firm, you definitely need to consider Pillar Wealth Management. We are an independent firm offering exclusive wealth management services to individuals and families who have $5 million to $500 million in liquid investable assets. Our team of wealth managers and financial advisors is highly experienced and skilled with the complex challenges faced by affluent individuals. We use a vast range of tools and services to formulate customized financial plans for our wealthy clients so they can accomplish their objectives and attain financial security. Want to get started with wealth management? Click here to set up an absolutely free meeting with our team!

What Exactly Is Selective Wealth Management?

If you’ve joined the high net worth club, you might have come across people in your circle talking about working with wealth management firms. However, if you don’t have an in-depth understanding of the topic, you might wonder what exactly is wealth management. In this section, we will sort out your confusion and take a detailed look at wealth management.

The premise of wealth management is that individuals who have a high net worth usually require more comprehensive services than those provided by traditional financial advisors. Individuals with millions of dollars typically have complicated tax situations, complex investment portfolios, ownership interests, several businesses, and other particular needs that unlikely to apply to ordinary investors.

The wealth managers at a wealth management firm have the ability to leverage a vast range of investment and financial products and services to address a specific set of needs. In exchange for a fee, wealthy clients of a wealth management firm get personalized strategies designed specifically with their financial situation in mind.

In contrast with other financial advisors, selective wealth management firms usually have a much larger account minimum for their client’s assets under management. As a matter of fact, several wealth management firms have a minimum asset requirement that goes up to millions. For example, at Pillar Wealth Management, we solely work with individuals and families with at least $5 million worth of liquid assets.

All in all, wealth management helps you accomplish your short and long-term financial goals. It accounts for financial objectives and non-financial objectives as well, like if you have any philanthropic interests. To start working towards your financial goals, book a free meeting with one of our wealth managers!

Selective Wealth Management Background

Selective Wealth Management was founded in 2012 and has its headquarters in Forest, VA. The fee-only firm has clients in over 30 states, offering customized financial advisory services through a team approach that puts comprehensive knowledge and expertise at your service. It operates the publicly traded fund SLCTX.

As of January 18, 2022, the firm has approximately $408,000,000 in assets under management.

Selective Wealth Management Client Types and Account Minimums

The firm provides wealth management services to individuals, high net-worth individuals, family offices, trusts, estates, charitable organizations, institutional clients, and mutual funds.

The minimum investment requirement for new clients at Selective Wealth Management is $1,000,000.    This minimum may be waived at the discretion of the firm.

Services Offered by Selective Wealth Management

Selective Wealth Management offers financial planning, investment strategy, asset allocation, asset selection, and portfolio monitoring.

Selective Wealth Management Investment Philosophy

At Selective Wealth Management, the financial planning process includes three phases: Introduction & Discovery, Portfolio & Risk Alignment, and Tax Optimization & Opportunity Identification.

As tax minimization strategies, Selective employs backdoor Roth contributions, qualified charitable distributions, and capital loss harvesting.

The firm’s investment process begins by identifying the client’s risk preference and financial goals. This data is used to create an asset allocation that is personalized to achieve those goals. To begin, the client is offered low-cost, transparent, tax-efficient, and unlevered securities that focus on safety, consistency, and performance.

Selective’s asset monitoring process focuses on positions greater than 5%. Its analysis method includes fundamental analysis.

Fees Under Selective Wealth Management

The management fee (percentage) is the same regardless of the client’s asset allocation, within the following tiers.

The fee for assets valued up to $2,000,000 is 1.25%; from $2,000,000 to $5,000,000, the fee is 1.00%; and over $5,000,000, the fee is 0.75%.

What Are the Benefits of Wealth Management?

Another commonly asked question regarding wealth management is, what are the benefits of wealth management. If you are also searching for the answer to this question, continue reading below to find out how a wealth management firm can help you out!

1. Helps You with Financial Planning

This is one of the most significant benefits of wealth management. It provides direction to all your financial efforts and activities and helps ensure that you always stay en route to attaining your targets.

Just for this stage alone, your financial advisors will invest several hours to completely understand all your financial targets, life goals, your personal situation, and so on. Then using the information they’ve gained and leveraging their knowledge and skills, they will create a strategy that’s aligned with all these factors.

Moreover, when they have devised the financial strategy, they will also bear the responsibility of continuously monitoring your progress and adapting the strategy according to any shifts in your targets, amendments in your financial situation, and changes in the market.

2. Allow You to Spend A Comfortable Retirement

When you contemplate your financial future, your retirement should be the first thing on your mind. Generally, people retire when they’re 65, which means they have a good 20 – 30 more years with no active income source.

Having a financially sound and secure retirement is every person’s goal. However, bringing that goal to life can be tricky and even more so for ultra-wealthy individuals. For instance, you might have a set of challenging goals, such as launching a new business, investing in real estate, or traveling the world.

Moreover, retirement planning isn’t something that you can do a year before retirement. Instead, it requires plenty of years of planning. Wealth management focuses on providing comprehensive advice to ensure that you are financially comfortable when you retire. The best wealth management firm will make sure that you have an asset allocation and investment strategy that aligns with your overarching financial objectives.

At Pillar Wealth Management, we can devise a viable and pragmatic plan to help you spend a comfortable and stress-free retirement. Read this guide here and learn the five paradigm shifts you need to make to get the maximum investment performance that will allow you to spend a worry-free retirement.

3. Effectively Lower Your Payments to Uncle Sam

Taxes are one of the most significant expenses you have to bear as a high net worth or ultra-high net worth investor. This is because all financial activities you undertake, be it transfer of wealth or investments, create some tax liability. Consequently, you can lose thousands, sometimes even millions, of dollars every single year.

While taxes are undoubtedly an unavoidable expense, it doesn’t mean you cannot control them. This is where another benefit of wealth management arises – it allows you to cut down your tax bill effectively.

The wealth managers and financial advisors factor in the tax implication of every financial decision and then make decisions to lower that expense. For example, they might recommend you modify your investment strategy or move to tax-free states. Read our special guide on how to pick a financial advisor who can help to reduce your tax bill successfully.

4. Reduce the Risk Associated with Your Assets and Wealth

Accumulating $500 million or even $5 million in liquid investable assets is no easy feat. In fact, it can take you several years, or even a few decades, to amass such wealth. So, to make sure your wealth and assets stay safe, you need to take proper steps to protect them. There are plenty of affluent families and individuals who suddenly become bankrupt because of volatile market conditions or because they contract a chronic illness that they had never planned for.

This is where selective wealth management firms can help you out through their risk management services. These firms will ensure that your investment portfolios are adequately diversified and your assets are efficiently allocated to secure your wealth against market volatility. Furthermore, they help you get insurance such as life insurance, long-term care insurance to keep you safe if something unexpected happens to your health.

For more details regarding the importance of risk management, make sure to read our hardcover book, The Art of Protecting Ultra-High-Net-Worth Portfolios and Estates – Strategies for Families, Worth $25 million to $500 million.

5. Ensure Your Wealth Effectively Reaches Your Beneficiaries

Legacy and estate planning might not seem that important when you’re young. But as you grow older or as you get married and have children, you need to think about your family’s financial security as well.

Hence, estate planning services offered by wealth management firms are a crucial part of your financial plan. However, transferring wealth to your beneficiaries isn’t as easy as it sounds. There are several tax implications to account for, legal issues to work out, and several other factors.

Wealth managers can help you with all of this and ensure that you and your family stay financially secure. They can allow you to figure out strategies to lower your tax burden, set up trust funds, and execute your philanthropic plans too.

Is It Worth Paying A Wealth Manager?    

The benefits of hiring a wealth management firm might have convinced you to work with one to manage your assets and wealth. However, you need to keep in mind that not all wealth management firms and wealth managers are equal. Some of them don’t have the requisite skills, some don’t have sufficient experience with wealth management, while some don’t work in your best interests.

So, if you’re thinking, is it worth paying a wealth manager, the answer to that isn’t a simple yes or no. The fact of the matter is that it’s only worth paying a wealth manager who has the appropriate skills, knowledge, experience, and abilities to manage your wealth effectively.

Here is a list of things you need to look for in a wealth manager before hiring them. For more in-depth information on choosing the best financial advisor, read our ultimate guide for investors with $10 million or above.

1. Credentials

Thoroughly check the wealth manager’s certifications and credentials to ensure that they have the appropriate license needed to offer the services they are providing.

Some wealth managers are also listed on databases such as the Financial Planning Standards Board (FPSB) and the CFP website. You can look up your potential wealth managers on these platforms to get information regarding their credentials.

Carrying out a comprehensive background check like this will allow you to know if the professional has any cases or complaints against them as well.

2. Experience and Performance Record

Being a high net worth net or ultra-net worth individual, you deserve to get the best wealth management services, which only an experienced wealth manager can offer you. Hence, you need to ensure your manager has sufficient experience in providing wealth management services to affluent clients such as yourself.

If you hire an inexperienced wealth manager, your wealth and assets will be at significant risk. This is because amateur wealth managers don’t know how to secure your wealth against market risks and volatility.

Along with experience, you should also pay attention to the performance record of a wealth manager. After all, there’s no use hiring a wealth manager who has a proven history of failing their clients. Thus, experience and performance record are two things you should never ignore.

At Pillar Wealth Management, we are proud to have a combined experience in offering wealth management services that span over six decades. So, we can surely help you make intelligent investment decisions to make sure you achieve your financial goals, both short and long-term. Visit our website today to speak to our experienced wealth managers.

3. Passive Investment Approach

The passive approach to investment is a great strategy to preserve your wealth in the long-run. It includes tracking data of financial markets and using it to make investment-related decisions. There are plenty of benefits of passive management, including a lower tax rate and lower fees. For more details regarding the benefits of passive investment, don’t forget to read our guide, Improving Portfolio Performance.

At Pillar Wealth Management, our team of wealth managers is highly adept at striking the optimum balance between passive and active investment management strategies. This will help you manage your wealth in the best possible way.

Parting Words

Given the benefits of wealth management, its essential for all high net worth and ultra-high net worth individuals to avail these services. If you want to get a more detailed insight into how wealth management can help you or want to start working on your customized wealth management plan, set up an absolutely free meeting with us.

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