Wealth Management Anaheim: Is It Really Worth Hiring a Wealth Management Firm?

The Complete Guide to What We Do

If you have accumulated over $5 million in liquid assets, then you need to ask yourself: Is it time you sought help from a wealth management Anaheim firm for handling your assets? Professional wealth management is imperative for high net worth and ultra-high net worth investors. Without it, you will find it challenging to grow your wealth, achieve your financial goals, or leave behind the legacy you desire for your family. The right financial advisor Anaheim can help you achieve all that and more. If you have a net worth of $10 million to $500 million, then click here to read our exclusive guide on how you can choose the right financial advisor for managing your estate. You can also book a free consultation with Pillar Wealth Management.

 Pillar Wealth Management offers private wealth management for ultra-high net worth investors, having over $5 million to $500 million in liquid assets. We make use of exclusive investment tools and strategies that can help you capitalize on market trends and pursue the lifestyle you desire by enhancing the value of your estate to achieve financial serenity.

Read on as we discuss how wealth management works and is it really worth hiring a wealth management firm.

How Does Wealth Management Work?

Wealth management involves providing fiduciary advisory services that help high net worth investors manage their assets and address their financial needs and goals. It involves discussing your investment priorities with a wealth management advisor to develop a tailored investment strategy that uses various financial products and services to grow your net worth. Your wealth management advisor can provide you with:

  • Tax minimization strategies
  • Estate planning strategies
  • Strategies for insurance, real estate, retirement, mergers and acquisition, etc.
  • Lucrative investment options for equities, cash, and bonds
  • Strategies for risk aversion and financial security

Wealth management is not limited to investment advice. Instead, it provides high net worth investors with a holistic approach that encompasses financial, legal, accounting, and other relevant disciplines. It allows them to manage their money in the best way possible. 

To learn more about how wealth management works and how you can select the right person for the job, click here to read our exclusive guide

What Can High Net Worth Investors Gain From Wealth Management ?

One of the most fundamental principles of financial management dictates that the value of money declines over time. You may have $10 million today, but if you fast forward 20 years from now, that same amount will lose some of its potential earning capacity. Wealth management prevents this from happening by helping your liquid assets grow in value. This ensures your financial security in the long term. So, if you are wondering, “is it really worth hiring a wealth management firm?” then the answer is a resounding yes.

Some of the most significant benefits of seeking private wealth management for ultra-high net worth investors include:

1.     Making Your Wealth Last

You have amassed all this wealth, but how can you make sure it lasts? What happens if a calamity strikes and your estate loses its value? What if you can’t keep track of your expenses and end up underestimating the amount of money you and your family need to lead a life of comfort?

A qualified wealth manager can help you avoid these dreadful scenarios. They will begin by understanding your goals and what exactly you want to achieve with your money. For instance, you might want to use it as a source of income after you retire or for traveling around the world. You may also want to leave your estate to your children. Typically, the goal-setting process involves the following aspects:

  • How much money do you need to spend to maintain your ideal lifestyle?
  • How much money do you typically save?
  • How much money do you want to leave behind for your family?

Once you have outlined your goals, your wealth manager can create an investment strategy tailored to your priorities. They can allocate your assets by investing in stocks, bonds, and cash to diversify your investments and help you achieve stable returns.

To learn more about how wealth management works, start a conversation with Pillar Wealth Management.

Wealth Management Anaheim

 

2.     Avoiding Massive Losses Due to Market Uncertainty

The thing about financial markets is that they are always in flux. Unless you can read market trends accurately and predict the highs and lows that result from global events, it’s hard to be entirely sure about whether your assets are safe from market uncertainty. This is particularly worrisome for high net worth investors where a few wrong choices can cause you to lose millions. We have seen it happen to numerous investors, and unless you choose the right financial advisor for managing your assets, it could happen to you too.

A qualified wealth management company can help minimize these losses. At Pillar Wealth Management, we carry out in-depth risk reviews of your investment portfolio to see how it performs in stressful situations. We refer to this as the Portfolio Stress Test. It involves over 1,000 scenarios based on historical data that can be traced as far back as 1925. This approach helps us analyze how your portfolio will respond if a certain event occurs in the future. It helps us adopt appropriate safety measures that keep your losses to a minimum. As mentioned earlier, we also opt for smart asset allocation that protects the value of your assets.

Finally, we seek to balance your risks and returns by establishing an Efficient Frontier. This technique allows us to see whether the level of risk in your portfolio is diminishing your returns.

Remember, the larger your estate, the more you have to lose. If you are an ultra-high net worth investor with assets valued at $25 million to $500 million, then we also recommend you order a 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.

3.     Stressing Less Over Your Finances

Private wealth management for ultra-high net worth investors can reduce your stress levels and help you achieve financial serenity. However, this largely depends on the wealth manager you choose. In particular, you need to steer clear of large investment firms and investment banks. These financial advisors focus on active management that is based on outperforming the market. Unfortunately, this rarely happens. It is not unusual for research to show that 95% of active managers fail to beat the market. The result? You incur huge costs in active management fees, you fail to see the returns you were promised, and your investment shrinks in value. In the end, you end up feeling more stressed than ever.

In many cases, financial advisors also promise unrealistic returns and create a sense of urgency in clients to invest in risky assets for the sake of earning more. These types of risks can lead to huge losses, which is precisely what you want to avoid.

It’s important to remember that all of this depends on who you are working with. A true fiduciary will not waste their time trying to beat the market. Instead, they will focus on building an investment strategy that focuses on achieving your goals. They will prioritize your peace of mind instead of chasing after numbers.

At Pillar Wealth Management, our goal isn’t to help you earn the highest growth without accounting for the risks involved. Instead, we help you manage your money, make decisions that support your goals, increase your net worth, and provide you with the financial security needed to lead a stress-free life.

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It all depends on balancing the need to extract high-growth performance while still keeping your goals and risks in mind.

To learn more about how and when performance matters, click here to read our complete guide on improving portfolio performance for high net worth investors.

4.     Keeping Track of Your Goals

As we keep reiterating, it all comes back to your goals and whether you can achieve them. Of course, this doesn’t mean making a list of your goals and then forgetting all about them. If that were the case, you wouldn’t need a wealth manager. Unfortunately, many large investment firms do exactly that. They will make half-hearted attempts at the onset to ask about your goals but fail to keep a check on how their services help you achieve them.

 What you need is someone who can actively manage your investments and keep track of your goals. At Pillar Wealth Management, we take on an integrative approach where we monitor your portfolio performance and update your plan on a quarterly basis to see whether you are on the right track.

If not, we will make adjustments to your Efficient Frontier, test your portfolio, and optimize it to make sure you continue generating stable returns while assuming an acceptable level of risk. To learn more about how we conduct these tests to maximize your gains, get in touch with us to schedule a free consultation.

5.     Ensuring Cost Efficiency

Wealth managers can help you manage your money more responsibly. They allow you to cut costs wherever possible to increase your savings. Over the years, you can save hundreds and thousands of dollars and avoid financial insecurities. This can be done by:

  • Avoiding taxes by helping you generate long-term instead of short-term capital gains
  • Opting for passive management over active management
  • Using short-term losses to offset short-term gains and minimizing your tax burden
  • Refraining from borrowing on margin

Remember, cost minimization is a critical aspect of wealth management. Any wealth manager worth their salt must actively try and reduce your costs as much as possible.

 If your wealth manager doesn’t seem to be dedicating their time and energy toward this, then you need to make a change straight away. It’s your financial legacy, and you need someone who cares about it as much as you do. At Pillar Wealth Management, we believe every high net worth and ultra-high net worth investor must make 5 critical changes to ensure they are getting the most out of their wealth manager. Click here to read our complete guide on what these changes are and how they can help you.

6.     Remaining Objective About Asset Allocations and Investments

Suppose you don’t have a wealth manager and decide to purchase the shares of a company. The investment looked promising initially, but there is a sudden turn in the market, and the next thing you know, the value of your stock has dropped. You are left feeling alarmed and anxious about losing all your money, so you decide to sell your shares to recover at least some of your investment. A few weeks later, the market stabilizes, and the stocks you had purchased rise up again. You reacted emotionally and ended up losing it on a possible opportunity to earn a profit.

Having a wealth manager can help you avoid this situation. An experienced wealth manager understands the volatile nature of the market. They can remain objective when allocating your assets and managing your investments. They understand market trends and create investment strategies that can help you leverage every opportunity while keeping your losses to a minimum.

Of course, that’s not all there is to it. You also need to make sure that your wealth manager has a set of systems and tools in place that allow them to draw logical conclusions regarding market downturns and make the right decision.

The Bottom Line

We hope you got an answer to your question, “Is it really worth hiring a wealth management firm?” Every high net worth and ultra-high net worth investor needs a qualified wealth manager to secure their assets, avoid risks, and extract the best performance possible from their investment portfolio. The services you choose when seeking wealth management, will be the deciding factor here. 

At Pillar Wealth Management, we offer over 60 years of combined expertise that helps our clients realize their financial goals, enhance their net worth, and achieve the financial serenity they deserve. If you have liquid assets valued over $5 million to $500 million and are seeking private wealth management for ultra-high net worth investors, then get in touch with us today to schedule a free consultation.

Financial Advisor Anaheim

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