Best Investment Planning: How Do You Find It? PillarWM

However, you can also contact the wealth managers at Pillar Wealth Management directly. We are an independent wealth management company that has been serving families and individuals with $5 million to $500 million worth of liquid investable assets for a combined period of over six decades. With our extensive experience, training, and expertise, coupled with our large range of financial and advisory services, you can stay assured that you will accomplish all your financial objectives.

Table of Contents
What Is Investment Planning? How Does the Best Investment Planning Work? What Does Investment Planning Look For? How Do You Get Investment Planning? Hire Pillar Wealth Management

What Is Investment Planning?

For high net worth and ultra-high net worth individuals, investment planning is one of the core components of financial planning. In fact, it is impossible to have one without the other. Before you start working on an investment plan, you need to understand what is investment planning. According to the definition, investment planning is the process of identifying your financial objectives and goals and aligning them with your available financial resources.

Once you have a set of well-defined goals, you need to choose which investment vehicle to invest in. These days, there are several different investment options available, including cash, bonds, equities, real estate, etc. Each of these has varying features, and a comprehensive investment plan will typically comprise a combination of these.

A financial advisor or investment planning firm will help you make the best possible decision by reviewing your investment portfolio. You can speak to one of our financial professionals to assist you.

How Does the Best Investment Planning Work?

An investment planner or financial advisor bases their investment decisions on your existing financial circumstances and your future financial goals. They identify which strategies to execute according to your risk tolerance, time horizons, and desired level of returns. To assess your situation, an investment planning firm will thoroughly study your investment portfolio and make any essential modifications. In our handy guide here, we highlight the five paradigm shifts you can make to attain the maximum investment performance.

Your existing income, investments, expenses, current income tax bracket, and expected time frame are all important when it comes to developing the most appropriate financial plan for you.

Here is a detailed explanation of how the best investment planning works.

1. Establishing Investment Objectives and Goals

Your long-term goals include family education, marriage, real estate purchases, retirement, and short-term goals include vacations, monetary purchases, or debt consolidation. Your investment planner needs to know about these, along with your savings, to determine the best course of action for you. This could entail investing in assets that secure funds for your long-term goals or making quick profits to accomplish your short-term financial objectives.

2. Determining Your Risk Tolerance

Understanding risk management and its potential impact is crucial for an effective investment strategy. Investment planners determine your investment personality and temperament to develop a suitable investment strategy.

3. Determine Your Asset Allocation

After determining your risk tolerance, the investment planner can develop an asset allocation strategy. The planner can choose from the various asset categories available in the financial market and allocate assets in a manner that attains optimum diversification while targeting the desired returns. To find out more about the importance of asset allocation, order a free copy of our hardcover book, The Art of Protecting Ultra-High Net Worth Portfolios and Estates – Strategies for Families Worth $25 Million To $500 Million.

Depending on your existing financial situation and goals, the investment planner can assign a percentage of certain asset categories such as gold, stocks, bonds, real estate, etc.

4. Formulating the Investment Portfolio

Whether you are designing your investment portfolio to generate income or for long-term capital appreciation, choosing the investments to develop your portfolio is a vital step in devising an appropriate investment plan. In this stage, your investment planner will discuss various alternatives such as Managed Accounts, Mutual Funds, Individual Securities, Wrap Accounts, Annuities, Insurance Products, Bank Products, etc., with you and determine which one is appropriate for your needs.

5. Reviewing and Rebalancing Your Investment Portfolio

Your investment portfolio demands continuous management to account for major changes in the financial market or your personal goals and life. An annual, semi-annual, quarterly, or monthly performance review can help determine if your investments continue to match with your goals.

What Does Investment Planning Look For?

You might be thinking, “what does investment planning look for in their clients?”. When you meet with one of these professionals, they might ask you questions such as:

• What is your income?

• What is your existing net worth?

• What kind of assets do you have?

• What are your financial goals?

• How much risk can you afford to take? Are you willing to invest in stocks that might fluctuate in the short-term but can potentially lead to high returns in the long term? Or would you feel comfortable investing your money more conservatively?

• How long do you want to invest for?

• When will you need the money you plan on investing in now?

• How would you like to spend your retirement?

• What kind of a lifestyle would you like to have during retirement?

• Do you wish to continue donating to special causes or charities during retirement?

These are vital questions that investment planning professionals use to learn about your financial background and future aspirations. They then use the information you have provided to give useful suggestions and formulate an investment plan for you. Schedule a meeting with one of our premier financial advisors to get started with investment planning.

How Do You Get Investment Planning?

The world of investment has its own unique markets, resources, and language. If you are a new investor aiming to get a high net worth financial strategy, getting in touch with a licensed professional is the best way to go.

Generally, when someone needs assistance with investing planning, they go to a brokerage firm. Brokers follow what is called a suitability standard of care. This means they are required to work in your best interest to suggest investments in accordance with your financial goals.

However, they don’t have any legal obligation to search for the best or most cost-effective investment for their client. This could make them recommend funds with exorbitantly high expense ratios to get larger commissions.

High net worth and ultra-high net worth individuals with high-value assets need more confidence that their wealth is in experienced and trustworthy hands. Registered Investment Advisors, commonly known as RIAs, follow a fiduciary standard of care, which legally obliges them to prioritize their client’s interests instead of their own. The use of investments such as exchange-traded funds, low-cost index funds, and no-load mutual funds ensure that your financial requirements are met.

1. Conduct Comprehensive Research

When looking for an investment planner, make sure to carry out comprehensive background research regarding their experience. It is advisable to talk to your colleagues or friends who have more experience with investing. Moreover, you could ask your financial advisor for references and then decide based on the testimonials provided by their clients.

If this is something new for you, you should do some research online by reading financial books, blogs, and newspapers to familiarize yourself with the world of investments. On the other hand, you can speak directly with a financial professional to get insights into your financial needs.

Keep in mind that the best investment advice comes from someone who is experienced and knowledgeable in the field. Getting information regarding investments can help you ascertain if your chosen investment planning company is the best match for you. If you are looking to invest $5 million or more worth of liquid assets wisely, you should request a free copy of our book, 7 Secrets to High-Net-Worth Investment Management, Estate, Tax, and Financial Planning.

2. Speak to the Investment Planning Firm

After narrowing down your options to just a handful of investment planning companies, you should go ahead and speak to each one separately. You can either have an in-person meeting or a video call.

In your meeting, you should explain your existing financial circumstances and what your investment expectations are. The advisor will apprise you regarding the services they provide and how they can help you attain your investment objectives.

Here are some things you can discuss with your potential investment planning firm in this meeting.

• Experience Level

Experience is an investment planning company’s most prized asset. These experts work with high net worth and ultra-high net worth investors for several years to ensure that they accomplish their investment objectives. This means they get to witness the challenges they face first-hand and provide suitable solutions.

An investment planner who has recently started providing such services might not be well-versed with all such challenges and the best strategies to overcome them. If you need to pick between an experienced investment planner and one that has just started out, it is much better to pick the experienced one.

• Expertise

Many investment planners claim themselves to be the best in the business. Nevertheless, the quality of their service is largely dependent on their expertise. Most of these experts hold degrees in finance or a similar field. But it is the extra knowledge they acquire after they start working that is most useful.

• Reachability

A good investment planner should be easily reachable. There is really no point in working with a professional if you’re redirected to their voicemail every time you try to get in touch with them.

An investment planner who is tough to reach won’t be of much use when you need to make prompt decisions that could influence your future financial situation. Because of this, you should make sure your selected professional has time for you and can offer advice even on short notice.

• Investment Approach

The investment approach of an investment planning firm says a lot about its credibility. Typically, most investment planning companies are more focused on active money management, which encompasses buying and selling various investments within a year.

Even though active investment management can yield high returns, it also comes with higher taxes, risks, transaction charges, and fees. On the other hand, passive investment management aims to develop an investment portfolio based on the market index and focuses on attaining long-term goals with lower risks. This results in lower fees and taxes. In our guide, Improving Portfolio Performance, you can learn more about the differentiating features of the two investment management approaches.

At Pillar Wealth Management, we seek to create a perfect balance between passive and investment management approaches so that our clients attain high returns while incurring minimal costs.

• Range of Services

Investment planning companies can provide several investment-related services, such as financial planning services, financial advice, and investment planning services. We highly recommend you determine what you precisely need help with before you hire an investment company. This entails having an idea of your time horizon and risk tolerance.

Hire Pillar Wealth Management

Investment planning firms can offer various strategic approaches and suggestions depending on your investment profile. Searching for a financial advisor who has the appropriate knowledge base and experience suitable for you can be quite daunting.

At Pillar Wealth Management, we are a team of professional wealth managers with over three decades of offering financial recommendations to individuals with $5 million to $500 million in investable assets. Sign up for a free meeting with us today!

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