The Complete Guide to What We Do
Many affluent individuals often don’t have the time, or the skills, needed to independently manage their wealth. Such individuals eventually choose to hire a wealth management adviser to manage their assets and wealth. If you’re also a high net worth or an ultra-high net worth individual, read this article and learn how a wealth management adviser can benefit you. To know how you can choose the best financial advisor, read our unique guide here.
At Pillar Wealth Management, we offer exclusive wealth management advisory services to clients who have $5 million to $500 million in liquid assets. Our services even include investment advisory and financial planning. Speak to one of our managers and get more details about the services we provide.
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Things You Need to Know About Wealth Management Advisers
Wealth management is an investment advisory service that encompasses various financial services to fulfill the needs of affluent individuals and families. It is a consultative process where the adviser learns about the client’s requirements and creates a comprehensive strategy that includes the most suitable financial products and services.
A wealth management adviser or wealth manager is fundamentally a financial adviser who utilizes the various financial instruments available, such as financial and investment advice, accounting, retirement planning, tax management, and legal or estate planning to efficiently manage the assets of a high net worth or an ultra-high net worth client. Here are some other things you need to know about wealth management advisers.
Wealth Management Advisers Will Devise A Plan of Action for You
A wealth management adviser will start off by asking you questions related to your long-term expectations and financial goals. They will even develop an understanding of your risk tolerance and assess your liquidity needs at particular stages in your life.
The wealth management adviser will then develop a wealth management plan that includes an appropriate mix of assets, which will help in generating income as well as building up long-term wealth. This involves actual asset creation and allocation of these assets to diversify any possible risks.
Wealth Management Advisers Make Money in Different Ways
Generally, wealth management advisers make money in any one of the following four ways.
Commissions – Certain wealth management advisers make money only by getting commissions for selling and recommending particular financial products and services to their clients. However, commissions aren’t really preferred as they lead to a conflict of interest. For instance, they might encourage the wealth management adviser to recommend some products and transactions that benefit them instead of helping you.
Salaries and Bonuses – Some wealth management advisers don’t charge a fee or earn a commission. Instead, they make money by getting a fixed monthly salary from the company they work for. These wealth management advisers may even receive a bonus for accomplishing a particular milestone, such as onboarding a pre-defined number of new clients each year.
Client Fees or Fee-Only – Several wealth management advisers earn money by charging a certain percentage of the value of the assets they are managing on their client’s behalf. Generally, this is 1% of the total assets under management (AUM) for an account of $1 million each year.
However, the fee structure follows a sliding scale, which means that clients who have more money might have to pay a lower fee. For example, if a wealth management adviser charges 1% of the total AUM to clients who have $5 million, they will charge 0.5% to clients who have AUM worth $10 million.
At Pillar Wealth Management, our wealth management advisers follow a fee-only model and charge our clients a fixed yearly fee. To get more information about our business model and fee structure, schedule a one-to-one meeting with us.
Fee-Based – Fee-based wealth management advisers generally earn money through two ways – charging a fixed percentage of the total assets under management and commissions from selling financial products. In a fee-based model, you won’t be the only one paying the wealth adviser as they’ll also be earning referral fees and commissions from third parties.
Wealth Management Adviser Service for High Net Worth
A wealth management adviser provides several different financial products and services to their clients. They generally carry out their duties by evaluating their clients’ current financial situation, including assets, debts, and expenses, and figure out areas for improvement.
As stated earlier, a good wealth management adviser will discuss your financial goals and create a plan to help you reach them. This involves setting up an emergency fund to provide for unforeseen expenses, approximating your post-retirement costs, offering tax-optimization services, etc.
Wealth management advisers will also help you optimally invest your wealth in the various investments available by providing comprehensive management services. Other wealth management adviser service for high net worth individuals may include:
– Estate Planning
– Insurance Planning
The investment management service offered by wealth management advisers is all about developing and overseeing a client’s investment portfolio. It encompasses buying and selling investments, offering a comprehensive investment plan, managing asset allocation, tracking investment performance, and making modifications when necessary.
At Pillar Wealth Management, our wealth management advisers manage entire investment portfolios on behalf of our affluent clients. Our competent wealth management advisers specialize in devising a comprehensive investment strategy to help our clients attain their financial goals. We subsequently implement this plan by apportioning the client’s wealth among the various investment options, such as stocks and bonds. You can get more information on how to maximize investment returns in our guide, Improving Portfolio Performance – The Shifts Multi-Millionaires Must Make to Achieve Financial Security and Serenity.
The estate planning process involves identifying people or organizations who will take over your wealth and inherit your assets after you pass away. The primary aim of estate planning is to ensure that your beneficiaries receive the inheritance in a manner that minimizes the various taxes such as estate tax, gift tax, etc.
Sadly, plenty of individuals don’t take up proper estate planning, which ends up costing their families and other beneficiaries large amounts of distress and money when they are at a highly vulnerable phase in life. To get detailed information on estate planning and the risks associated with it, read our recent book, The Art of Protecting Ultra-High Net Worth Portfolios and Estates – Strategies for Families Worth $25 Million to $500 Million.
Overall, estate planning plays a vital role in your overall wealth management strategy. Planning for your future will give you increased control and an opportunity to leave behind a better legacy for your loved ones. Our competent wealth management advisers will prepare an in-depth estate plan that incorporates several financial planning tools such as getting the ideal insurance coverage, establishing a trust, and creating a succession plan. This will allow your beneficiaries to receive their inheritance without paying any extra dollar in taxes.
If you fail to take up proper investment planning or estate planning, you won’t be able to grow your wealth by investing it in the right place or leave a meaningful legacy. But if you fail to take up a proper insurance plan, all components of your wealth strategy can go in vain.
Comprehensive planning will help you identify and plan for all the involved in every aspect of your financial life. Integrated insurance planning will allow you to mitigate the risks that you can’t even predict. So, where wealth planning will grow your wealth, insurance planning will secure and preserve it.
At Pillar Wealth Management, we have complete knowledge about the intricacies of the insurance industries and how they fit your existing and future financial situation. With our comprehensive insurance analysis, you can stay assured that you aren’t spending your hard-earned wealth on non-feasible insurance plans. Additionally, we can go through your existing plan and check if they’re any loopholes that can create problems for you and your family. We also know that your life is continuously evolving and so we will regularly re-evaluate your insurance policies to ensure that they’re suitable for you.
Do You Need to Hire A Wealth Management Adviser?
You might still be feeling a little unsure about hiring a wealth management adviser. After all, you can get all of the services discussed above from several other financial institutions. So, do you need to hire a wealth management adviser or not?
Well, our verdict is that if you’re a high net worth or an ultra-high net worth individual, you do need to hire a wealth management adviser. Not only is it practically impossible to manage your own wealth, particularly if you’re a millionaire, but hiring a wealth management adviser will offer you great benefits such as the ones listed below.
1. You Can Spend A Comfortable Retirement
You may not have thought about it, but after you retire, you won’t continue to have an active source of income. Instead, you’ll have to meet all your financial needs by the passive income created by your investments.
Thus, if you choose to hire a wealth management adviser, you can entrust them with the responsibility of creating a complete plan for you so you can spend a comfortable retirement. Moreover, like several affluent individuals, you might also have certain things you wish you do after retirement. For instance, you might want to travel the world, buy an estate on a quiet, remote island, or purchase a luxury yacht and go sailing.
At Pillar Wealth Management, we create detailed retirement plans for our high net worth and ultra-high net worth clients so that they continue to a steady income after retirement. If you avail our retirement income planning, you can live a luxurious life even after retirement and fulfill all your retirement dreams. If you really wish to turn your retirement dreams into reality, don’t forget to read our guide, 5 Critical Shifts for Maximizing Portfolio Growth Strategies.
2. You Won’t Have to Pay Extra Money to Uncle Sam
Perhaps the only drawback of making a profit on investment is the tax bills that accompany it. Since taxes are a regular part of life, a well thought out and comprehensive tax strategy can help you save large amounts of money!
Tax optimization plays a significant role in growing and safeguarding your wealth. Our expert wealth management advisers will study your assets, liabilities, and finances to formulate the perfect tax plan for you that will help you accomplish your financial goals. For instance, we can assist you in leveraging the lucrative incentives provided by governments on particular investment categories. Schedule a meeting with us if you want to learn more about the various tax-optimization techniques.
Why Hire an Ultra-High Net Worth Wealth Management Adviser?
If you’re an individual who has more than $25 million worth of liquid assets and are still thinking, “why hire an ultra-high net worth wealth management adviser?” then do check out the ways in which a wealth management adviser can help you increase and protect your wealth.
Knowledge and Skills
Wealth management advisers have plenty of knowledge regarding managing the wealth of ultra-high net worth families. They have a comprehensive understanding of the different financial products available in the market and closely watch the ongoing market trends to swiftly capitalize on any lucrative opportunity.
Plus, wealth management advisers have access to substantial data to create the best strategies to help you accomplish your financial objectives. At Pillar Wealth Management, we have historical market data going back to 1925, before the Great Depression, which allows us to carry out objective analysis to form the basis of your financial plan. Read our special guide here and learn how data-backed decisions help generate profitable returns.
Customized Wealth Management Plans
Unlike the major investment companies and other Wall Street firms, our wealth management advisers don’t believe in offering the same wealth plan to every client who comes our way. In fact, this year, we took only 17 new clients so that we could develop a thorough understanding of each client’s life ambitions and financial goals.
At Pillar Wealth Management, we focus more on creating your legacy. We take pride in providing customized financial and investment solutions to help ultra-high net worth individuals move closer to the life of their dreams. Click here to learn more about choosing the right wealth management adviser for individuals with $10 million or more in liquid assets.
Choosing the best wealth management adviser plays an essential role in managing your wealth. At Pillar Wealth Management, we learn about your financial targets and come up with strategies to assist you in accomplishing those targets.
Get in touch with us today and know more about how our wealth management advisers can help you expand and safeguard your wealth!
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