Ultra-wealthy individuals have a net worth of tens of millions of dollars, with shares in numerous private or public companies. Their range of assets is widespread in personal investments and multiple securities. Overlooking this fortune can become overwhelming and stressful. That is why many high earners look for financial advisors who provide investment management near me. If you want a comprehensive approach to finding the best advisor, you can read our guide.
Strategies For Families Worth $25 Million To $500 Million
The Art of Protecting Ultra-High Net Worth Portfolios and Estates
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.
An expert can understand the importance of saving, the fundamentals of investing and the best approach to take calculated risks. Wealth managers are well-versed in handling the high-value assets of affluent investors and are able to use the best strategies to find opportunities in private and public markets. At Pillar Wealth Management, our wealth management team has decades of experience in helping you boost your cash flow and secure your assets. We cater specifically to a high net worth clientele with $5 million to $500 million in liquid assets. If you would like a free consultation, schedule a call with us.
Table of Contents
Investment management involves the management of assets such as real estate, and various securities such as bonds or shares, to meet the financial goals of an institutional or private investor. An investment advisor provides investment management services as well as advice on money management.
The term refers to more than just purchasing and selling financial assets. Investment advisors devise short-term and long-term strategies to handle your assets and create a portfolio that caters to your investment goals and objectives. They are skilled enough to maintain your tangible and intangible assets. Investment management is also interchangeable with portfolio management and wealth management, each differing only slightly.Our Ultimate Guide can help you identify which financial advisor is right for you.
Some of the services that investment management firms usually cover are:
– Asset Allocation
– Stock Selection
– Portfolio Strategies Implementation
– Financial Planning
– Monitoring Investments
Investment advisors aim to align your investments to match your future goals, including retirement and estate planning. They are skilled in dealing with different kinds of securities and financial assets such as equities, commodities, bonds, real estate and more.
Types of Investments
Having a clear understanding of the different categories of investments is crucial in investment management. The type of investment determines the strategy your advisor will develop to support your investment profile. All investments come under three basic categories: cash equivalents, leading investments andownership investments. Some investments are a combination of two categories, for example, Real Estate Investment Trusts, which can come under ownership and lending investments.
Cash equivalents are typically made up of cash and would be included in your portfolio in a smaller percentage because of its low return rate. Any asset that you own falls under ownership investments, such as stocks, collectibles, art, antiques, property or even businesses. Stocks allow you to buy a share in the ownership of a publicly-traded company. Fluctuations in the market cause the value of the stock to increase or decrease, according to which you can buy or sell stocks.
Low-risk investments with low-rewards are typically lending investments, for example, bonds, treasury bonds, certificates of deposit, savings accounts or insurances. They’re a safer investment to ensure that your money stays secure, but they offer little to no profit. You can refer to our book, The Art of Protecting Ultra-High Net Worth Portfolios and Estates – Strategies for Families Worth $25 Million To $500 Million, for more strategies on how to safeguard your wealth. Alternative investments can be venture capital, commodities or mutual funds.
An investment advisor will aim to create an investment plan that contains a combination of all asset categories so that you have a diversified portfolio. Allocating your assets in the right proportions is essential to reach your long-term goals.
Different Investment Management Styles
Investment management companies may adhere to a particular investment management style or investment strategies, each having its own distinctive features, risk characteristics and methods. Generally, a number of complementary styles are employed to achieve the best results. Which style an advisor chooses to implement will depend on the economic environment, market conditions or the client’s specific requirements. Blending various investment strategies can provide less volatile returns to achieve objectives more successfully.
Passive Investment Management
Passive management consists of index management, in which the advisor aims to match the performance of the respective index, i.e., a collection of stocks. Holding most of the stocks in the index offers a lower cost and more diversification. It is a low-risk but long-term approach.
Active Investment Management
Active management involves purchase and selling of securities based on experience, research, or forecasts. The investment manager is more actively involved in this process; therefore, they have a higher fee. The goal here is to earn a profit by exceeding the market performance. Multi-managers and single managers follow this approach.
Multi-managers enlist the help of investment managers that work for them to provide you with a comprehensive plan on your investments. Since the managers they hire have their own preference of management styles, multi-managers provide a combination of investment management styles.
- Single Managers
On the other hand, single managers actively decide and invest in securities themselves. In this category, value managers use historical data to price stocks and estimate their value. Growth managers focus on profitability and future performance.
When it comes to investment management, the type of management style affects whether your advisor will be able to give you the results you need. As an ultra-high net worth investor with over $10 million in liquid assets, you can benefit by learning more about how to select a financial advisor through our guide.
Why Investment Management is Important
If you’re wondering, “Why do I need investment management?” the answer lies in how immense your wealth is. People with complex personal finance situations will significantly benefit from hiring high net worth investment management services.
It can be a struggle to keep up with your various banking, saving and retirement accounts, in addition to your stocks, pension funds and mutual funds. An overwhelming portfolio can hinder your ability to maintain steady growth in your assets. You may not be aware of the methods and techniques that can be used to make this process efficient.
Even if you think you have a solid investment plan in place, how sure are you that it can sustain you financially for the rest of your life? The critical factor in investment management is rebalancing your portfolio and adjusting your asset allocation regularly. You may end up changing your life goals, generating more income, acquiring a large sum of money, or contrastingly, lose some of your wealth. In every one of these circumstances, you will new a newly revised plan to manage your finances.
The Advantages of Investment Management Firms
Private and independent investment management firms are ideal for wealthy families, as they are experienced in dealing with multiple high-value assets. Their fiduciary duty holds them to a high standard, keeping your interests above your own and disclosing any conflicts of interest.
The best investment advisors or wealth managers work to ensure a lucrative, secure and healthy financial life for you and your family. They specialize in creating customized investment and financial plans. You can rest assured that your portfolio will be tailor-made to suit your financial profile and future expectations. Pillar Wealth Management offers investment and asset management services to help you create customized investment plans. If you have more questions, you are welcome to schedule a free consultation with our wealth management experts.
An investment management firm can help optimize your investment portfolio and market valuations to align with your risk tolerance and financial objectives. They also advise you on managing tax on your retirement income, preparing for unforeseen expenses, and preserving your assets to withstand market fluctuations.
How to Select from Investment Management Near Me
When you’re findinginvestment management near me, it is wise to be cautious and make this decision after careful consideration. You don’t want all the money you earned through hard work and dedication to be wasted on poor investments or mismanagement. So, your primary concern should be how to find a investment management company that provides the services and results that it promises.
Searching for Investment Management Firms
Searching online is the most convenient method. Alternatively, getting investing recommendations from coworkers or acquaintances is a reliable method, but it doesn’t give you a comprehensive outlook on all your options.
You can look up articles that have compiled a list of the best investment management companies. Normally, the articles would be based on the firm’s reputation and size of assets under management (AUM). However, this is not entirely reliable as it does not guarantee a company’s skill for customization, responsive investing or personal optimization services. If you’re wondering what these optimization services are, our guide details how you can optimize your portfolio by making five shifts in your strategies.A high net worth individual has unique financial complexities and investing issues which cannot be solved by just any investment manager.
Skills and Experience
Certifications and accreditations are crucial in verifying the credibility of your investment management team. A Registered Investment Advisor (RIA) is a trust-worthy option since they abide by a highly ethical fiduciary standard of care. Furthermore, advisors who have experience in working with several high-value assets will be more equipped and prepared to manage your wealth and optimize your portfolio. Wealth managers in our firm have that experience and knowledge. If you want your wealth to be managed by a team of experts, book a free consultation with one of them.
Understanding Their Fee Structure
An investment advisor’s upfront fee is typically 1% of your portfolio’s value, but this can vary according to the firm. You should be aware and mindful of hidden costs and fees that investment management firms could be charging. These can include commissions, internal fees, money from investment products, kickbacks and more. So, clarifying the total cost beforehand can help you decide whether the service you’re hiring is worth it or not.
The number one priority of all successful people is to sustain their fortune. Hiring the assistance of a wealth manager or financial advisor who provides investment management near me can help you avoid simple investing blunders and make the most out of your investment profile. They are well-versed in improving your portfolio’s performance, which you can learn more about in our Performance Guide.Increasing cash inflow and reducing cash outflow is easier said than done. An expert who has studied investments and investment strategies for years can give you the best advice on high net worth investment management.
Pillar Wealth Management is a private wealth management firm that provides investment advice to clients with $5 million to $500 million in liquid investable assets. We can analyze how you allocate your assets and do extensive research to help you design your portfolio and rebalance it after monitoring its performance. Moreover, our well-versed wealth managers can assist you on an array of other financial services, from alternative investment strategies to risk management and liquidity management. Book a meeting with our team to get started on organizing your financial life.
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