The Complete Guide to What We Do
Handling your finances by yourself is not an easy job, especially if you’re an individual with more than $5 million worth of liquid assets. In such cases, financial planning firms can offer you comprehensive services such as investment management, risk minimization, cash flow planning to help you efficiently manage and secure your wealth and assets. Read our special guide for investors with $10 million or more, and learn how to choose the best financial planning firm for yourself.
At Pillar Wealth Management, we have a team of highly skilled and competent financial planners who work with individuals who have assets valued between $5 million and $500 million. We have been providing financial planning services to wealthy clients for more than three decades. To learn more about how we can secure your wealth, sign up for a meeting with one of our managers.
Table of Contents
What Are Financial Planning Firms
If you’re a high net worth or an ultra-high net worth individual, you might have heard of financial planning firms. But you might not be sure about what are financial planning firms. Simply stated, financial planning firms are institutions that help their clients set financial goals and develop an action plan to successfully realize those goals.
The financial planners who work for financial planning firms are qualified professionals who assist clients by analyzing investments, insurance, budgets, and other financial products. They create strategies for clients and serve a major role in today’s world since they have comprehensive knowledge of both basic and advanced financial concepts.
Many wealthy individuals find finance quite challenging to understand, so financial planning firms bridge the knowledge gap by offering complete tools and supports for clients. The best financial planning firms don’t just sell financial products and services. Rather, they transform people’s lives and help them attain financial serenity. Speak to our team and learn more about how we can help you become financially secure.
Type of Financial Planning Firms
There are different kinds of financial planning firms. In this section, we’ll take a closer look at the five main types of financial planning firms.
Transactional Financial Planning Firms
Transactional financial planning firms move money between savings accounts and mutual funds and invest their clients’ wealth into different bonds, stocks, money markets, and other financial products. Such firms may also choose to invest your wealth in commodities and other highly specialized investments, or they may sell you financial products such as annuities or life insurance.
Transactional financial planning firms will frequently share a progress report with you to keep you updated regarding your portfolio and investment performance. If you want to learn new techniques for maximizing your investment portfolio’s performance, read our free guide: Improving Portfolio Performance, The Shifts multi-Millionaires Must Make To Achieve Financial Security And Serenity.
Wealth Management Firms
Wealth advisors and wealth management firms usually work with high net worth and ultra-high net worth individuals and provide comprehensive financial planning services along with investment guidance. Such clients usually have very unique financial planning requirements that call for a different set of financial planning skills and expertise. Thus, wealth advisors and managers can assist their clients with almost every aspect of their financial life, including services such as tax management, estate planning, insurance and retirement planning.
Wealth management firms generally require higher account minimums for your assets under management. In fact, most of these firms have a minimum investment in the millions. For instance, at Pillar Wealth Management, we provide wealth management services to clients who have a minimum of $5 million in liquid assets.
A robo-advisor is a low-cost, automated investment management service. Robo-advisors use computer algorithms to develop and monitor an investment portfolio based on your goals. They are perfect for young people who have don’t have a lot of savings but want to carefully manage their finances, pay off student loans, credit card bills, and plan for the future.
Robo-advisors will become less helpful as you grow older, accumulate assets, and get close to retirements. The increasing complexity of your financial situation will require more holistic and in-depth financial solutions.
Certified Financial Planners
Some financial planning firms employ chartered financial consultants (CHFC), registered investment advisors (RIA), and certified financial planners (CFP). Financial planners who have CFPs have gone through extensive training and experience requirements of the CFP Board have cleared the certification exam.
Financial planning firms can provide services that don’t need regulation, such as retirement planning, budgeting, assistance on how to pay off debt.
Irrespective of the type of financial planning firm you work with, the primary reason is the same: managing your investment portfolio and financial affairs is quite simpler if you’re getting financial advice from a qualified professional. If you want to know more about how to choose the best financial planning firms, read The Ultimate Guide to Choosing the Best Financial Advisor.
Financial Planning Firms’ Services
Financial planning firms create holistic strategies that include various financial planning services. This helps financial planning firms ensure that their clients successfully accomplish their financial targets.
Some of the financial planning firms’ services include:
-Retirement Income Planning
-Balance Sheet Optimization
-Cash Flow Management
Getting a profitable return on investments seems very exciting, but it does come with a significant disadvantage – heavy taxes that can cost you a large amount of your wealth.
The good news is that you can use the tax planning services provided by the top financial planning firms to effectively lower the amount of taxes you have to pay. Tax planning involves creating and executing several techniques to reduce your tax burden.
Our firm’s financial planners will carefully study your income sources, the size of your investment and your investment returns’ timing to create a tax-minimization strategy for you. Moreover, if you avail our tax planning services, you won’t have to stress about missing any tax payment deadline that can cause you serious trouble such as jail time.
Risk is an unavoidable aspect of investments. However, the level of risk varies for each investment. For instance, the risk of investing in a U.S. Treasury bill is close to zero, whereas the risk of investing in real-estate securities, hedge funds, and cryptocurrencies is quite high.
Our risk management services will allow you to invest your wealth in a way that minimizes your risks while maximizing your returns. Our team has plenty of expertise in identifying, analyzing, and reducing the risk that can come from several reasons, such as inflation, market volatility, etc.
Many affluent individuals transfer a percentage of their assets and wealth to their beneficiaries once they reach a certain age. They believe that they can easily manage this process on their own. But the truth is that transferring wealth is an extremely complex task that is marred with several obstacles such as extremely high taxes. In our recently published book, The Art of Protecting Ultra-High Net Worth Portfolios and Estates – Strategies for Families Worth $25 Million to $500 Million, we talk about the various problems associated with the process of wealth transfer.
At Pillar Wealth Management, our financial planning services include wealth transfer services where we create holistic transference strategies. We use a combination of different financial planning tools such as trusts, wills, life insurance, and estate planning, which ensure that your wealth and assets go to the right people in the most tax-efficient way possible.
Retirement Income Planning
Retirement income planning is a vital service provided by financial planning firms. Note that after you retire, you will no longer have an active income source, and you’ll have to meet your financial needs by the passive income created from your investments.
Along with that, many affluent individuals have specific retirement goals. For instance, some high net worth and ultra-high net worth individuals want to buy a new home, get a luxury vehicle, or take long vacations to their favorite destinations.
Our financial planning firm specializes in devising extensive retirement plans so that you receive a steady income, which will allow you to enjoy a luxurious standard of living even after retirement. We strongly suggest you read our free guide 5 Critical Shifts for Maximizing Portfolio Growth Strategies to learn how you can fulfill your retirement dreams.
Balance Sheet Optimization
Cash and real assets are both equally important – real assets help to manage and grow your wealth, whereas cash helps you purchase goods and services. Thus, if you fail to have enough cash or liquid assets, you might need to sell your real assets at extremely low prices. But this doesn’t mean that you should have high liquidity as that carries a counterparty risk. The ideal thing to do is to diversify your balance sheet so that you lower your risks and can easily work through unforeseen circumstances.
Our talented financial planners will study your complete balance sheet and keep you updated regarding your debt (mortgages, credit cards, and loans), real assets (property, collectibles, and commodities), and financial assets (cash, equities, and bonds). We will adjust your balance sheet to ensure that you have adequate liquidity to buy whatever you need when you need it!
Cash Flow Management
Proper management of your assets and wealth helps ensure that you keep moving towards accomplishing your financial goals, such as repaying your mortgage, buying a luxury yacht, running a charitable foundation, and attaining financial serenity. Cash flow management is also important to help you create and sustain an emergency fund so that you can easily cover any unanticipated expenses. Essentially, cash flow planning is one of the most critical services provided by a financial planning firm.
At Pillar Wealth Management, we are skilled at creating in-depth cash flow management plans so that you’re able to spend a life that is free from financial troubles. We will study your income sources and cash outflows and analyze your assets and liabilities to identify areas where we can improve your cash flow. Utilizing our services will help you make smart decisions regarding your wealth, predict any possible cash problems in the future, and sort it out before it even occurs.
Financial Planning Firms for High Net Worth Investors
You might still be thinking if you even need to hire financial planning firms. After all, won’t it be better if you go to a broker or a private bank to manage your assets and investments? Unless you want the standardized, cookie-cutter solutions that aren’t aligned with your personal financial goals, here are some reasons why you should be looking for financial planning firms for high net worth investors.
Knowledge and Expertise
Financial planning firms have complete knowledge and expertise in managing high net worth individuals’ assets and portfolios. They know everything about the different financial products available and closely monitor market trends to immediately capitalize on any profitable opportunity. Additionally, financial planning firms use plenty of data to come up with the best plans to help you reach your financial objectives.
At Pillar Wealth Management, we have financial data from 1925, which we use to carry out scientific analysis to provide the foundation of your financial plan.
Reach Financial Serenity
Every individual on the globe strives to achieve financial serenity and become financially successful. Unfortunately, attaining financial serenity is much more difficult for high net worth investors. It can be tough entrusting all your wealth to another person. However, this is exactly why you need financial planning firms.
An experienced, competent, and qualified financial planning firm will help you reach financial serenity so that you don’t have to stress over your finances and live the life you always dreamed of! Book a free consultation with one of our team members and learn how you can attain financial serenity.
Translate Vague Goals into Actionable Targets
Financial planning firms can even help you translate your vague goals into more actionable targets and, consequently, turn your financial dreams into reality. Suppose you’re about to retire but want to launch a charitable foundation. If you take up this task on your own, you might invest your wealth in the wrong place, which can cause you to lose all your wealth.
On the other hand, a financial planning firm will know exactly what steps to take to get you closer to your financial goals. Read our guide for investors with $10 million or more and learn how to choose a financial advisor that will turn your dreams into reality.
Last Few Words
Pillar Wealth Management is a fee-only wealth management firm. We provide several financial planning services to our wealthy clients to help them accomplish their personal financial goals in the best possible manner. Click here to book a free consultation session with one of our managers today!
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