The Complete Guide to What We Do
There are multiple benefits to hiring a money management company to manage your wealth and assets. For instance, a good money management company will identify your financial goals and come up with tailored financial strategies that best suit your unique financial circumstances. In our handy guide, we have talked about how to choose a competent financial advisor that meets your needs.
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.
At Pillar Wealth Management, we offer money management services to clients who own assets worth anywhere between $5 million and $500 million. We help our clients attain financial serenity so that they can live a life where they don’t have to stress about their finances. Schedule a free meeting with our team to learn how we can help you manage your wealth.
Table of Contents
What Does A Money Management Company Do?
A money management company is essentially a financial firm that handles the asset portfolio of an institutional investor or an individual. Usually, a money management company hires several experts with different expertise ranging from conducting research and identifying the best investment options to keep track of the assets and decide when to sell them.
In exchange for a fee, a money management company has the responsibility to carefully select and handle investments for their clients. This involves developing a suitable investment plan and buying and selling securities to help their clients accomplish their long and short-term financial goals. A money management company is also sometimes known as an “asset management company,” “portfolio management company,” or “investment manager.”
But what does a money management company do? Well, here are some of the services that a money management company provides to its clients
-Asset Allocation Analysis
Asset Allocation Analysis
Asset allocation is an investment strategy that aims to balance out investment risks and returns. It involves apportioning assets among major categories such as real estate, bonds, cash, stocks, and derivatives. Each category of assets has varying risk and return levels, so each will behave differently over time. For instance, if the value of one asset category increases, the value of another might fall or might not increase as much.
Some people view this approach as a tool to generate moderate returns. However, for most high net worth and ultra-high net worth investors, it’s the best strategy to protect against a significant loss in case things go wrong in one asset category. Overall, most financial experts’ general consensus is that asset allocation is one of the key tools that an investor can use to get higher portfolio returns.
At Pillar Wealth Management, our experts know that each investor has a unique set of financial goals, time horizons, and risk tolerance. Thus, we ensure that we don’t use standardized cookie-cutter solutions for determining the ideal asset allocation for each client. Rather, we will hold comprehensive meetings with you to fully learn about your financial circumstances and goals. This way, the asset allocation strategy we create will be perfectly in line with your requirements.
Investment management is the process of handling various financial assets and other investments. Contrary to popular belief, investment management isn’t just about buying and selling assets. Rather, it encompasses formulating a long or short-term strategy for acquiring and disposing off portfolio holdings.
Investment management also includes services such as stock selection, financial statement, analysis, monitoring of existing investments, asset allocation, and portfolio strategy and implementation. Moreover, investment management may even incorporate financial advisory and planning services. This means that a money management company won’t just oversee a client’s portfolio but will also coordinate it with their life goals and other assets.
Professional money management companies deal with various financial assets and securities, including real estate, commodities, bonds, and equities. They may also handle real assets such as artwork, commodities, and precious metals.
At Pillar Wealth Management, we have in-depth knowledge of the various investment opportunities available and how they work. Our managers are experts at analyzing investment portfolios and formulating specialized plans that align investment to match estate and retirement planning. Make sure to read our helpful guide, Improving Portfolio Performance and learn about the techniques you can use to get the highest investment returns.
Risk is an inevitable component of investment. Essentially every investment carries some level of risk, which is considered to be almost negligible in the case of a U.S. Treasury Bill or very high for things such as hedge funds, cryptocurrency, and real-estate securities.
In finance, risk management is the process of identifying, analyzing, and mitigating the risk of investment decisions. Risk management is carried out when a money management company studies and quantifies the probability for losses in an investment and then takes a set of actions needed to minimize that probability.
Pillar Wealth Management’s risk management services will allow you to invest in a way that minimizes your risks and maximizes your returns. Our experts are highly skilled at recognizing, studying, and reducing risks that can stem from several factors such as inflation, market volatility, etc. Read this guide to learn about how you can prevent losses with proper performance and risk mitigation strategies.
Why Do Millionaires Hire A Money Management Company?
Many individuals who own assets worth millions of dollars often ask, “why do millionaires hire a money management company?” The truth is that there’s no one answer to this question. Rather, there are several reasons why high net worth and ultra-high net worth clients opt for a money management company. Some of these include
Expertise and Knowledge
Money management companies have in-depth knowledge and expertise in managing the portfolios and assets of millionaires. They have comprehensive information regarding the various financial products and keep a close eye on the market trends to promptly leverage any available opportunity. Moreover, they utilize a lot of data to come up with the best strategy to help you meet your financial goals.
At Pillar Wealth Management, we have financial data dating back to 1925, which we use to conduct a scientific analysis to provide the basis of your money management plan. Learn more about money management techniques by ordering a copy of our book, The Art of Protecting Ultra-High Net Worth Portfolios and Estates – Strategies for Families Worth $25 million to $500 million.
Attain Financial Serenity
Every person in this world aspires to achieve true financial serenity. This is the point where people have absolute confidence that they will accomplish the investment performance they need to live a life they dreamed of!
A qualified, competent, and experienced money management company helps millionaires attain financial serenity. This way, they don’t have to worry about their finances and spend their lives according to their dreams.
Who Is the Best Money Management Company?
There are several money management companies out there, so if you want to get all the benefits outlined above, you need to select the best money management company for yourself. So, the question arises, “who is the best money management company?”
Here are some factors that make the best money management company. You can also read our ultimate guide and learn how to choose the best financial advisor to help you attain your financial goals.
Experience and Track Record
A money management company’s experience speaks volumes about their abilities and skills. This is because certain skills, such as asset allocation techniques, are only mastered through experience. Therefore, you need to ensure that the money management company you pick has sufficient experience in their field.
Along with experience, the track record of a money management company is also extremely important. If you think about it, there’s no point hiring a money management company with a history of failing their clients. So, rather than focusing on what a money management company says they can do for you, look at what they’ve already accomplished in the past. Try reading up reviews from actual clients and gauge if they’re satisfied with a particular money management company’s services.
At Pillar Wealth Management, we have been providing money management services for more than 30 years. We have helped our clients get through the 2008 Financial Crisis and are currently helping them overcome the COVID-19 pandemic. Click here and speak to our highly experienced and competent managers today!
Fiduciary services are extremely necessary when selecting a money management company. This is the only way of determining that your company is fully committed to helping you achieve your goals. Fiduciary money management companies are licensed by the SEC to always work in your best interests and take actions that benefit you. Along with that, fiduciary money management companies have a legal duty to eliminate any conflict of interests.
At Pillar Wealth Management, we are very proud of the fiduciary, fee-only money management services we offer. With our experienced fiduciary money managers, you can be satisfied that your money is safe.
How Do I Choose A Money Management Company?
If you feel that you do require the services of a money management company, such as those listed earlier, you might be thinking, “How do I choose a money management company?” Well, here are some steps that will help you choose the most suitable money management company for yourself.
Step 1 – Collect Some Names
If you’re searching for a money management company, you can simply search Google or pull out the phone book to collect the names of some money management companies. However, the best course of action is to get referrals from your family, friends, and colleagues. Ask people who are high net worth or ultra-high net worth individuals about which money management companies they use. List down a few names and then search for them on Google.
Another good starting point is looking at the major industry associations. The National Association of Personal Financial Advisors (NAPFA) and The Financial Planning Association offer tools to help you look up money management companies in your area.
Step 2 – Conduct a Background Check
When choosing a money management company, make sure you conduct some research before hiring anyone to manage your money. Thankfully, the industry does make this task quite simple for high net worth and ultra-high net worth by making the background of money management companies available to search.
While researching money management companies for your needs, you should pay special attention to their qualifications and the services they offer. Some money managers might be listed on databases such as the Financial Planning Standards Board (FPSB) or the CFP website. You can use such databases to learn about their credentials and background.
Alternatively, you can research your shortlisted money management companies on LinkedIn and go through their educational qualifications, work experience, and the recommendations they’ve gotten from their clients. Any articles or blogs that a money management company has written for major websites also add to their reliability and trustworthiness. Moreover, if the money management company mentions any memberships they have, you can request their registration number and check if it’s valid.
Step 3 – Set Up an Introductory Call or Meeting
Apart from doing your homework, it would help if you met with the managers at a money management company in person before you hire them. This is a company that you’ll be taking financial help from and potentially work with for several years, so you must understand how they carry out their business.
So, after you’ve assessed a money management company’s credibility, you should try and schedule an in-person meeting with them. This way, you can learn more about their personality and decide if this is someone you can trust with your money.
In your introductory meeting, you should even ask several questions related to money management and see if you’re satisfied with their answers. Some of the questions that you can ask include
- What kind of clients have you worked with in the past?
- Do you use an active or passive approach to money management?
- What is your fee structure? Do you charge commissions?
- How long have you been working in the industry?
- What money management services do you offer?
- Do you use an active or passive approach to money management?
Last Few Words
Choosing the right money management company will play a major role in efficient money management. At Pillar Wealth Management, our team is adept at understanding your financial goals and creating strategies to help you fulfill those goals. To learn more about how our team can manage your wealth, sign up for a free consultation here!
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