Investing Company: How Should You Choose One? PillarWM
High net worth and ultra-high net worth individuals often generate a significant percentage of their income through investments. Intelligent investment choices can grow your wealth considerably while safeguarding your assets and securing your financial future. Working with a top investing company can help you attain that. Such companies will formulate comprehensive investment strategies that accurately reflect your investment profile and financial circumstances. If you are an affluent individual looking to invest $5 million or more worth of liquid assets, you can request a free copy of our book,7 Secrets to High-Net-Worth Investment Management, Estate, Tax, and Financial Planning, and learn more about how to make the right investment decisions.
STRATEGIES FOR FAMILIES WORTH $5 MILLION TO $500 MILLION
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.
If you still have any questions, you can speak to one of the financial advisors at Pillar Wealth Management. We exclusively cater to affluent families and individuals who own $5 million to $500 million worth of liquid assets. Our vast experience of over three decades has equipped us with the skills needed to assist such individuals in overcoming their unique financial struggles.
Table of Contents
What Is an Investing Company?
In order to find the best investing company, you first need to know what they are.
In plain words, an investment company is a trust or corporation that invests the capital of investors in various financial securities. These organizations are regulated by the Securities and Exchange Commission (SEC) to ensure compliance with the Investment Company Act of 1940.
Investing companies are essentially business entities, both publicly and privately owned, that market, manage, and sell funds to the public. The primary business of an investing company is to hold and manage securities for investment purposes. In addition, investing companies also offer their clients a number of investment and funds services, including record keeping, portfolio management, legal, accounting, custodial, and tax management services.
Investment companies are also referred to as fund companies because they can collaborate with third-party distributors to sell mutual funds. An investment manager or fund manager develops a well-diversified investment portfolio after selecting opportunistic businesses, industries, markets, and other investment products. Based on their expertise and experience, these professionals can execute strategies that enhance your portfolio’s performance.
However, investing companies aren’t the only organizations possessing this skill. Our team of wealth managers is highly adept at lowering investment risk and enhancing portfolio performance. If you want to get more information about how our wealth managers can help you, head over to our website to book a free meeting.
What Does an Investing Company Do?
Now that you have a fair idea of what an investing company is let’s take an in-depth look at what these companies do.
Generally, the three key tasks that investing companies perform include
1. Assess their Clients Risk Profile and Financial Goals
Investing companies require essential information about their client, such as how much money the client is aiming to invest, the long-term and short-term financial goals they wish to achieve when they need to access their money, and how much risk they are willing to take up.
2. Track Possible Investments
Investments range from government bonds and cash deposits to stocks in new companies with uncertain futures. An investing company needs to know of such possibilities and estimate the returns and risks of each. That’s the job of an investing company.
3. Devise Investment Plans
Every client needs to have an investment portfolio that is in line with their goals. A diverse portfolio with investments spread across several different assets helps to lower risk.
Is It Worth Hiring an Investing Company?
When you have $5+ million worth of liquid assets at stake, it can be pretty unnerving to trust someone else with the crucial financial decisions regarding your wealth. However, to not do anything at all or to make these financial decisions yourself is even worse.
There’s a high risk of you losing a considerable amount of wealth even before you retire. Or you could fail to accomplish your financial objectives and might have to let go of your dreams. We highly recommend you read our in-depth guide, Improving Portfolio Performance, to get more information about the complexities of devising an ideal portfolio and implementing it for financial success.
So, if you really think about the question – is it worth hiring an investing company, the answer is yes! These companies can help you build and preserve your wealth throughout your life and successfully pass it on to your heirs. Here are some ways in which working with an investing company can benefit you.
1. Design Your Investment Portfolio
Investment management is a complex and tedious task. You need to determine precisely which investment products to invest in and when. You need to evaluate every available investment meticulously, weigh out its returns and risk, predict its performance over the next few years, and ascertain how that investment will help you meet your targets.
All of this demands extensive expertise and experience that only the top investing companies have. They will conduct the required analysis and research and check the market to decide which investment is right for you.
2. Personalized Solutions
To be honest, investing your wealth is quite a simple task. There’s loads of information available online that you can use to guide your investment choices. But what’s actually tricky is investing your wealth in a manner that matches up with your financial goals. Every individual has a different set of goals and targets, and some of them might just be blurry life aspirations.
Whatever the case may be, an investing company will take the time to thoroughly learn about your objectives and then create an investment strategy. They will ensure all your investments are helping you move closer to where you want to be financially. Find out some of the essential shifts you need to make to maximize your portfolio performance from our special guide on portfolio growth strategies.
3. Plan for Retirement
One big reason why it’s worth hiring an investing company is that they help you plan for retirement. A lot of your other financial undertakings, such as estate and retirement planning, are directly dependent on the structure of your investment portfolio. Thus, if you want a comfortable and financially sound retirement, you need to hire the top investing company.
Your financial advisor will devise a plan in a manner that grows your wealth and creates an income stream for you that will support you even during your retirement. This way, you don’t have to stress over going out of money.
4. Portfolio Diversification and Asset Allocation
There’s always a certain degree of risk associated with investments. If you work independently, you won’t be able to fully eliminate risk from your investment portfolio, which in turn exposes you to several other threats and chances of losing your hard-earned wealth.
On the other hand, an investing company can help lower the risk using several different techniques. They can devise a well-diversified portfolio with investment spread across several different industries. But that is still not sufficient to minimize investment-related risks.
The professionals at an investing company will also formulate the appropriate asset allocation to ensure that your portfolio comprises the lowest possible risk. At Pillar Wealth Management, we have over 100 years of historical market data to test your investment portfolio and ensure that you are equipped to face any situation without risking losing your assets.
You can place an order for 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 to learn more about this.
5. Portfolio Rebalancing
Simply devising an investment portfolio isn’t sufficient to help you attain your long-term financial goals. With time, the market trends can change, exposing particular assets to higher risk or making some investments less lucrative. Moreover, your personal targets and goals can also change. You might wish to purchase another estate or plan to travel during your retirement.
Thus, as these factors evolve, you will have to rebalance your investment portfolio and adjust your strategy. Hiring an investing company will help you stay assured that an expert is always tracking such changes and making the required modifications so that you continue to stay on the road leading to financial success.
6. Reduce Your Taxes
Taxes accompany investments. In several situations, you might realize that you are utilizing most of your profitable gains to pay your taxes. In this regard, investing companies can guide you on which investment products can effectively lower your tax obligation.
At Pillar Wealth Management, we provide tax planning services to our valued clients and help them discover effective tax-saving strategies. If you want to benefit from our services, call us today for a free consultation.
How Do I Choose an Investing Company?
If you have made up your mind to work with an investing company, you might be faced with the challenge of finding and choosing a firm that actually suits your unique financial requirements.
For those of you who are looking to invest $5 million to $500 million worth of liquid assets, you may wish to request a free copy of our detailed book, 7 Secrets to High-Net-Worth Investment Management, Estate, Tax, and Financial Planning, written specifically for high net worth individuals and families.
1. Check the Investment Company’s Background
The first thing you need to do when choosing an investing company is conduct a comprehensive background check. Doing so will allow you to get plenty of important information that will help you filter out the good companies from those that aren’t that good.
When running a background check, you should specifically check the company’s or the professional’s certifications and licenses to make sure they have acquired the relevant education and training. You can also see if they are fiduciaries and if there have been any lawsuits or complaints filed against them.
2. Products and Services they Offer
When choosing an investment company, check the kind of investments that a firm is offering. Some companies only stick to stocks, whereas others might offer IPOs, ETFs, Roth IRAs and might even help you sign up for an insurance plan through them.
One way to go about this is to list down the type of investments you wish to obtain and determine whether or now you want fractional shares as a feature. By searching for firms that match the type of investments you wish to make, you can make your life much simpler.
3. Look into Their Experience
Once you have filtered out investing companies based on the above two factors, you need to look into their experience. Being a wealthy investor with millions at stake, you need to make sure you work with the best, and this is only possible if the company has several years of experience.
Thus, when selecting an investing company, make sure that the one you pick has been in the industry for at least ten to twenty years, as this indicates that they have the relevant skills and expertise to help you attain your goals.
4. Fiduciary Services
Another essential factor you need to consider when choosing an investing company is whether they are a fiduciary. Fiduciary investing companies are held to a strict ethical code and are required by law to always prioritize your best interests instead of their own.
Moreover, fiduciaries also have to disclose all relevant information such as drawbacks, benefits, potential conflicts of interest, etc., so you stay fully informed.
Last Few Words
Working with the top investing company can enhance your portfolio performance, lower risks, allow you to enjoy profit returns, help you accomplish your financial objectives, and move towards a financially secure life.
One firm that can offer all such benefits to you is Pillar Wealth Management. Our team offers fiduciary wealth and investment management services to high net worth and ultra-high net worth families and individuals. Schedule a free introductory meeting with our advisors and find out how we can get the most out of your investments.
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