Financial Investment Companies for The High Net Worth

For high-net-worth individuals, a sound portfolio plan or investment strategy is extremely crucial. For such individuals, their investment strategy directly ties into almost all other parts of their wealth management strategy.

Your retirement plan will depend on your investments to accrue enough savings and establish a steady source of income for after retirement. Your estate or legacy plans will depend on your investments to accumulate enough wealth to pass on to your beneficiaries or give away to charities or whatever else you want to do.

Likewise, your taxes will be directly impacted by your investment decisions, and so you will have to adjust your strategy to bring down your investment costs.

What all this boils down to is that as a high-net-worth individual, you can’t afford to go without investment management, and for that, you need to enlist the help of financial investment companies. High-net-worth investors looking to between $5 million and $500 million worth of assets should consider requesting a copy of our book, 7 Secrets to High-Net-Worth Investment Management, Estate, Tax, and Financial Planning, to discover the real importance of financial investment companies.

STRATEGIES FOR FAMILIES WORTH $5 MILLION TO $500 MILLION

7 Secrets To High Net Worth Investment Management, Estate, Tax and Financial Planning

The insights you’ll discover from our published book will help you integrate a variety of wealth management tools with financial planning, providing guidance for your future security alongside complex financial strategies, so your human and financial capital will both flourish.

Clients frequently share with us how the knowledge gained from this book helped provide them tremendous clarity, shattering industry-pitched ideologies, while offering insight and direction in making such important financial decisions.

CLICK HERE to qualify for your FREE COPY of this Book

Alternatively, you can also keep reading for a brief idea on why financial investment companies are so crucial for high-net-worth individuals, as well as more about such companies. And if you are even shorter on time, you can simply arrange a free chat with the financial advisors at Pillar Wealth Management. We are an independent firm that caters exclusively to affluent individuals and families with at least $5 million to $500 million in liquid assets. Our 100% fee-only and fiduciary financial advisors are completely dedicated to our clients’ financial success and security. Therefore, they are always trying to better understand our clients’ needs and develop unique solutions according to their problems and personal circumstances.

Table of Contents
What Are Financial Investment Companies? Are Financial Investment Companies Worth It? Choosing the Right Financial Investment Companies

What Are Financial Investment Companies?

Financial investment companies are essentially firms that offer various investment services and are primarily involved in investing money on behalf of their clients according to their goals and targets. While it sounds straightforward enough, these companies have a very tough job.

Financial investment companies have to design complex portfolios that not only take into account the client’s preferences but also consider the external market forces and how they could impact the portfolio performance in the short and long term.

Financial investment companies use various analysis tools and sophisticated software to predict the future performance of assets and the market in general. Moreover, they supervise the investment activities of their clients to ensure everything is in order.

These companies are regulated by the Securities and Exchange Commission (SEC), and they are required to follow the Investment Company Act of 1940. You can even start a free chat with our advisors to learn more about what financial investment companies are and what they can do for high-net-worth individuals.

Are Financial Investment Companies Worth It?

Now, if you are thinking, is it worth paying a financial investment company? Or, do I need a financial investment company? The short answer is yes! Especially for high-net-worth individuals, investment management with the help of a professional is crucial for their financial success.

If they try to do it on their own, they run the risk of losing all their wealth and even facing bankruptcy if they don’t manage to execute their investments successfully. Here are 5 reasons why financial investment companies are more than worth it for high and ultra-high-net-worth individuals.

1. Expertise and Experience

Financial investment companies have a lot more experience and expertise. Even if you have been managing your own investments successfully, your experience and expertise will be limited to the assets you have in your portfolio and perhaps within certain market conditions.

However, financial investment companies are familiar with all kinds of investment assets and the different types of portfolios that can be developed with them. They know how to handle your investments when the market is running smoothly as well as when there are fluctuations and disturbances.

All this additional knowledge and experience equips them with special skills that allow them to develop and execute more successful investments. Depending on their clients’ needs, they know exactly which assets to choose and how to design their portfolio in a way that will give the maximum returns. So, you may be good at managing your investments, but these companies can be even better.

2. Risk Management

One of the most critical areas high-net-worth individuals tend to fall short in is risk management. They assume that buying thirty different shares eliminates all risk, and they are completely safe now. However, this is rarely the case. Risk management is a complicated and continuous process.

Simply diversifying your portfolio across different companies is not enough. If a certain economic recession affects that entire industry, all your investments in those shares will collectively lose value. Instead, as you will learn from a financial investment company, what you need to do is diversify your portfolio along with smart asset allocation.

You have to divide your investments into different kinds of assets as well to further spread the risk. We suggest reading our comprehensive book, The Art of Protecting Ultra-High-Net-Worth Portfolios and Estates – Strategies for Families Worth $25 million to $500 million, to discover other ways to protect your assets and secure your financial future.

3. Retirement Planning

As mentioned earlier, investment management is tied into almost all other aspects of your wealth and financial plan, and this includes your retirement planning. Therefore, if you do want a secure retirement, you will want to work with a financial investment company.

A financial investment company will carefully consider your retirement goals and develop an appropriate investment plan for them. Whether you want to travel the world, donate, or even invest in other businesses, your investment strategy will ensure that you have enough funds saved by the time you reach retirement to accomplish all those goals.

Moreover, you will also be able to benefit from a steady stream of income from your investments so that you don’t have to worry about running out of money in the middle of your retirement. Set up a free discussion with our wealth managers to get started on your retirement planning right away.

4. Customized Solutions

Similar to retirement planning, most of your investment plan and strategy should revolve around your personal goals and targets. However, this is not exactly easy. Firstly, many of the big financial institutions tend not to offer customized solutions.

They just treat you like any other number on their system and offer basic packages that don’t really help. That’s why you need to find and work with the right financial investment companies. Other than that, it’s also quite difficult to translate vague life goals into meaningful action plans.

You might have the dream of living comfortably after retirement, but comfortable can mean different things for everyone. A financial investment company will make sure to understand exactly what you want in life and how much wealth you will need for it, and then, based on that, they develop customized and comprehensive solutions.

Read our extensive guide on maximizing portfolio performance to learn how customized solutions play a part in your financial success.

5. Portfolio Rebalancing

Simply developing a portfolio is not enough. You also need portfolio rebalancing to ensure your investment strategy remains efficient and effective. This is also important for several reasons.

Firstly, as there are changes in the market or in the economy, assets that were previously safe could turn risky. Therefore, as part of the risk management, your advisor may suggest rebalancing your portfolio to protect your assets from risk.

Similarly, even if it’s not the market forces, there could be changes in your personal circumstances or a shift in your life goals that warrant changes in your investment strategy. You might want to invest in more real estate or set other goals for retirement.

As a result, your advisor may adjust your investment portfolio and update your strategy accordingly. Besides that, your investment strategy also tends to change with time and how close you are to retirement. When your retirement is still far away, you can afford to take risks.

However, as you get nearer to retirement, you need to play it safe and switch to low-risk investments. So, the financial investment company will ensure that you have the right portfolio at every stage of your life.

We suggest high-net-worth investors looking to invest $5+ million worth of liquid assets to request a copy of our book, 7 Secrets to High-Net-Worth Investment Management, Estate, Tax, and Financial Planning, to learn more about the importance of portfolio rebalancing.

6. Tax Management

One of the most important reasons why a financial investment company is worth it is that they help with tax management. This is a big concern for high-net-worth individuals, even if they don’t realize it. Often, affluent individuals will only focus on attaining high returns from their investments, not caring about the tax implications of those investments.

As a result, they end up losing 30 or even 40% of their profit to taxes. This also tends to happen when you have an active money manager who insists on a lot of transactions in a year and, as a result, can accumulate a lot of capital gains taxes. You can learn more about active and passive money management from our brilliant guide on critical shifts for improving portfolio growth.

Financial investment companies focus on tax planning and optimization. They consider the tax ramifications of your financial decisions and proceed accordingly.

7. Fiduciary Services

Many high-net-worth individuals tend to fear working with other people as they don’t trust them to handle their wealth properly. And this fear isn’t misplaced. Certain financial advisors at certain institutions, such as brokers working on commission, do tend to pursue their own interests when there’s a conflict of interest.

So, then who are you supposed to trust? Fiduciary financial advisors at financial investment companies. These advisors follow a strict standard of care and are obligated to always look out for your best interests. They have to act in good faith always and remain transparent in all their dealings.

Choosing the Right Financial Investment Companies

All this sounds great, but to make sure you avail all these benefits, you first need to make sure you find the right financial investment companies. As mentioned earlier, there are all kinds of financial institutions out there. They will promise to help you make a lot of profits and promise to protect you from risk.

However, they will also offer the same cookie-cutter experience they offer everyone else. They might work on commission and, consequently, not be looking out for your best interests. That’s why you need to find the right financial investment companies that work best for you and your needs. You can evaluate them through their credentials, licenses, experience, the standard of care, list of services, reviews, testimonials, and even by asking them the right questions directly.

At Pillar Wealth Management, our financial advisors offer a long list of services from investment and portfolio management to tax management and even retirement planning. Our main goal is to help our clients achieve financial success and security, and to that end, we are always striving to provide them with the best services and tailored financial plans. We exclusively work with affluent clients with at least $5 million to $500 million in liquid assets and are well aware of the kind of complex challenges such individuals face. Book a free meeting at Pillar Wealth Management and consult our financial advisors for all your investment needs.

Authors

Hutch Ashoo

Chris Snyder

To be 100% transparent, we published this page to help filter through the mass influx of prospects, who come to us through our website and referrals, to gain only a handful of the right types of new clients who wish to engage us.

We enjoy working with high net worth and ultra-high net worth investors and families who want what we call financial serenity – the feeling that comes when you know your finances and the lifestyle you desire have been secured for life, and that you don’t have to do any of the work to manage and maintain it because you hired a trusted advisor to take care of everything.

You see, our goal is to only accept 17 new clients this year. Clients who have from $5 million to $500 million in liquid investable assets to entrust us with on a 100% fee basis. No commissions and no products for sale.