The Complete Guide to What We Do
Managing your personal finances is certainly not a simple task. Plus, if you own $5 million to $500 million worth of liquid assets, handling your own finances is highly impracticable. Thus, if you are a high net worth or ultra-high net worth individual, you may find yourself thinking about, “how to find a financial planner” who can safely and securely increase your wealth. Financial planners generally offer a wide array of services to wealthy individuals to help them meet their targets. Please read our detailed guide to learn why you should hire a financial planner.
Our financial planners have been assisting clients at Pillar Wealth Management with liquid assets ranging from $5 million to $500 million for more than three decades. Our extensive experience allows us to comprehend and leverage market movements for better results and greater investment gains.
Table of Contents
What Does A Financial Planner Do?
In basic terms, a financial planner is an expert who helps their clients achieve their long and short-term financial objectives.
Financial planners carry out their tasks by having in-depth discussions with their clients, which allows them to determine their financial objectives and openness to take risks. Once they have gained detailed insights into their client’s requirements, financial planners pick out an appropriate group of investments where their clients can invest their wealth.
Additionally, financial planners even develop strategies to ensure their clients reach their financial goals. Financial planners typically do this by allocating their client’s wealth to a diversified group of investments that create a steady income stream.
Here is a list of services that a financial planner typically provides:
-Balance Sheet Optimization
-Retirement Income Planning
-Cash Flow Planning
Balance Sheet Optimization
While real assets are vital in securing and building wealth, they aren’t sufficient in helping you purchase goods and services. Thus, if you don’t have a sufficient amount of liquid assets or cash, you might have to dispose of your real assets at extremely low prices. Contrarily, having high liquidity can subject you to counterparty risk. So, if you want to keep an optimum liquidity level and reduce your risks, you have to properly diversify your balance sheet.
Balance sheet optimizing refers to adjusting your balance sheet as your financial circumstances change. With this process, your balance sheet will accurately indicate the changing priorities in your life.
Pillar Wealth Management’s financial planner can do an in-depth analysis of your balance sheet and help you determine how much you own in financial assets (equities, bonds, and cash), real assets (properties, collectibles, and commodities) and debt (loans, credit cards, and mortgages). We will create an optimal balance sheet to ensure that you have sufficient liquidity to purchase what you want when you want it.
Retirement Income Planning
Retirement income planning is a key service offered by financial planners. Note that after you hit retirement, you won’t have an active income source, and you’ll have to fulfill your financial needs by the passive income generated by your investments.
A lot of high net worth and ultra-high net worth investors have certain retirement goals. For example, some wealthy individuals aim to accomplish a new set of financial objectives, whereas some choose to spend their retirement life using their savings comfortably.
Our financial planners specialize in coming up with comprehensive retirement plans to ensure that you continue to get a steady income stream even after you retire. Moreover, if you desire to achieve any financial goals after you retire, we can help you with that too! We highly recommend you read this guide to know the five critical shifts you should make to maximize your investment performance.
Plenty of affluent wealthy individuals opt to handover a percentage of their assets and wealth to their children and other heirs once they grow old. The process of wealth transfer theoretically sounds quite easy and simple. But the truth is that this procedure is extremely complex, and people who try and execute it themselves often have to face various problems. For instance, they end up losing a lot of their wealth in 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 complexities of wealth transfer.
Qualified professional planners mostly include wealth transfer in the list of services they provide that combines a number of financial planning instruments such as life insurance, trusts, wills and estate planning. At Pillar Wealth Management, we are skilled at assisting our clients with wealth transfer, where we create a transference plan to make sure that your wealth goes into the hands of the right organizations or individuals in a way that minimizes taxes.
Cash Flow Management
Cash flow planning is one of the most vital services provided by financial planners. Successful management of your assets and cash helps to ensure that you stay on track to accomplish your financial goals, such as purchasing a holiday home, repaying your mortgage, being able to retire when you want you, and comfortably spending your post-retirement life. It’s also essential that you have adequate funds for emergencies to provide for unanticipated expenses such as long-term illness or disability.
Pillar Wealth Management provides cash flow management services so that you don’t run out of wealth. We identify where you’re getting your income from and how you’re spending it. We also look at your assets and liabilities to identify areas for improving cash flow and optimizing resources, such as modifying your tax withholdings. With our meticulous cashflow planning services, you can make smarter decisions with your money, identify any future cash problem, and rectify it before it takes place.
Wealthy individuals such as yourself often invest their wealth in a number of different financial markets. While this is a great way to manage one’s assets, it does come with plenty of risks. The most common example is that market trends can change unpredictably and undo all your long-term gains within a second!
It’s close to impossible to predict when a particular market is going to crash. But if you have Pillar Wealth Management’s financial planners by your side, you don’t have to stress about it! We are proficient at creating risk-minimizing strategies for our clients that minimize the risk associated with any such market shift. To learn more about how you can achieve the highest investment return, read our special guide – Improving Portfolio Performance.
The only disadvantage of making a profit on investment is that high taxes accompany it. But on the bright side, financial planners offer tax management services to lower your tax obligation.
Tax management encompasses creating and implementing multiple techniques to minimize your tax bill as much as possible. It includes a number of considerations such as the timing and amount of your income, the timing of your purchases, etc., to formulate a tax-minimization plan for you.
Our financial planners are experts at coming up with and executing tax-deduction plans. We carry out an extensive analysis of our client’s investment to identify places where you can cut back on taxes. Schedule a meeting with one of our financial planners to know more about reducing your tax burden.
Are Financial Planners Worth It?
If you’re still thinking, “Are financial planners worth it?” then check out some additional benefits of using a financial planner to manage your wealth.
Customized Financial Plans
Private banks and other major Wall Street firms tend to provide a plain vanilla, cookie-cutter solution to all their clients. However, our financial planners don’t believe in offering standardized plans to every high net worth and ultra-high net worth individual. We know that unlike others, you will have your own financial aspirations, risk tolerance, and time horizons. Thus, we will have detailed discussions with you to know your requirements and create personalized financial plans that are thoroughly aligned with your particular needs.
Financial planners have vast experience when it comes to holistic financial planning. As experienced experts in the field, they can properly guide you with much better and comprehensive advice. Our financial planners at Pillar Wealth Management have been a part of the industry for over 30 years, so they are well-versed in all the nitty-gritty of financial planning. Click here to read our ultimate guide, where we discuss how to choose the best financial planner to get the expert guidance you need.
Our financial planners act as fiduciary, which means that we minimize, if not completely eliminate, any potential conflict of interest. We are completely committed to helping you achieve your financial goals. Moreover, we ensure that the suggestions we give you are always in your interests, even if they don’t align with ours.
Who Are the Best Financial Planners?
While there are several financial planners that you can opt for, you should choose one that handles your wealth most optimally. So you might be wondering who are the best financial planners that can help you manage and increase your wealth?
Here is a list of factors that you should look for in a financial planner to make sure they’re the best one.
Experience and Track Record
The experience and track record of an employee speaks volumes about their skills and abilities. Hence it would help if you didn’t focus on what they can do for you in the future but what they’ve already accomplished in the past. Certain skills, such as asset allocation strategies, are only learned through experience, so you need to ensure that the financial planner you choose has adequate experience in the financial planning field.
At Pillar Wealth Management, we have been providing fee-only financial planning services to affluent individuals for over three decades. Click here to book an appointment with our experienced team and get detailed insights into how we can help you increase your wealth.
Active and Passive Investment Management
Active investment management is where financial planners make frequent transactions, capitalize on trending products and hot buys. Even though active investment strategies are crucial for generating short-term gains, they do come with high management fees and taxes.
Passive investment management is a long-term approach to increase wealth. It involves monitoring the indexes of financial markets and working more closely with data and research. Additionally, passive investment management usually charges a lower management fee.
At Pillar Wealth Management, our financial planners are experts at striking the perfect balance between active and passive investment approaches. This way, you can accomplish your financial goals while minimizing the management fees that you need to pay.
How to Find a Financial Planner for Ultra-High Net Worth
Well, now you know everything a financial planner does if they’re worth your money and the factors that make a financial planner the best option. But the big question remains – how to find a financial planner for ultra-high net worth individuals?
Thankfully, this task isn’t as daunting as you might think it to be. Here are a few simple techniques that you can use to find the best financial planner for your needs.
Read Reviews Online
A quick Google search on the best financial planners will show you the names of multiple different financial planners. So, how do you know which one is right for you? The answer is pretty straightforward – you need to simply go through their reviews available online!
There are various websites that you can use to access testimonials from actual clients. This will help you determine the pros and cons of each financial planner.
Meet with Them
After shortlisting a few financial planners, you should meet with them, either online or in-person and ask them questions regarding how they make money if they offer the services that you need, their investment approach, etc. In our guide for investors with $10 million or more, we have listed some more questions that you should ask a financial planner before hiring them. If the financial planner can give you satisfactory answers, you should start working with them.
At Pillar Wealth Management, our financial planners provide fiduciary financial planning services to prioritize your needs and ensure that you accomplish your financial goals. Register for a free consultation with our expert financial planners to learn more about how we can help you.