The Complete Guide to What We Do
Money management is an essential part of any successful person’s life. The hard work and effort high net worth and ultra-high net worth investors put in to build their wealth have to be treated accordingly. Valuable assets need to be protected with the best financial advice available. If you’re an individual with over $10 million in liquid investments, then you need to trust your finances to the right person. For this purpose, our free guide is exclusively meant for you.
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.
Anyone can give out financial advice and tell you what you need to do with your money. However, guidance from an experienced professional, someone who understands the affluent’s workings, can make all the difference in the world. Financial advisors at Pillar Wealth Management are experienced in financial management for wealthy individuals that have liquid asset investments worth $5 million to $500 million. Schedule an appointment with one of our experts today.
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Financial Advisory Services
Financial advice or financial advisory is a service provided to corporate or individual clients, which includes financial planning, asset management or even M&A. Charitable organizations and municipal governments can also enlist financial advisor’s assistance.
Financial advisors are professionals who help their clients with money issues, based on their financial situation. They can provide advice on a wide range of financial aspects, including, but not limited to, budgeting, insurance, investments, creating investment portfolios, estate and retirement planning, and tax and debt management.
While professionals such as doctors or lawyers require a specific degree or license to practice, financial advisors do not. That being said, there are certifications that they can get to improve their expertise and specialization. Certified financial planners (CFP), chartered life underwriters (CLU), chartered financial analysts (CFA) and certified public accountants (CPA) are examples of licensed financial advisors.
Which Kinds of Financial Advisors Are There?
Before you decide who can give you the best financial advice, it is necessary to understand that there are different kinds of financial advisors. They can offer a single service that they specialize in or an array of services.
In the US, brokers, investment advisers, accountants, lawyers, insurance agents and financial planners are also allowed to refer to themselves as advisors. With the multitude of specializations coming under the term, it is wise to understand which kind of financial advice you need. Learn more about selecting the right financial advisor in our Ultimate Guide.
A financial advisors’ goal is to help their clients manage their money, but they differ in their services according to their area of specialization. Some of these services may overlap with one another. The two main types are independent advisors and restricted advisors. Independent advisors work for the client’s benefit to provide unbiased and general advice after researching all financial instruments. Restricted advisors are fiducial advisors registered with a state or federal agency who advise on investments.
Wealth managers are financial advisors to exclusively cater to a high-net-worth clientele, working to maximize their wealth enhancement while securing their assets.
Why Do People Seek Financial Advice?
You may be wondering, “When do you need financial advice?” The simple answer is when you want a clearer, organized and effective financial plan. Financial planning is an aspect of financial advice that helps you develop a holistic plan for your finances. This can include budgeting for your plans or planning for your retirement. It generally does not refer to the investing aspect of wealth management.
Wealthy individuals have multiple high-value assets that can become overwhelming to manage at times. Additionally, you may want to secure your wealth and earn more returns from your investments. If you lack knowledge in the world of investments and finance, a financial advisor is suited to step in and give you calculated and tried-and-tested advice.
Retirement planning can include a plan which aims to maximize your investments and balance your risk and return ratio to provide you with financial security for the rest of your life. Your lifestyle, expenditure habits, medical or personal requirements, and risk appetite will lead your advisor to give you the best financial advice suited for you.
Taxes can take up a considerable amount of your income, and a financial expert can guide you through steps that can minimize your taxes. For example, they may take advantage of your philanthropic goals to give to charity. Additionally, the technicalities of estate planning and insurance planning are usually well-understood by financial advisors. They can keep you up to date on the most efficient options and inform you of any changes in policies and how they might affect you.
Best Financial Advice for High-Net-Worth Investors
A high standard of living requires the sustainability of monetary assets throughout future generations. An efficient and well-thought-out plan can deal with the financial hurdles that could hinder your wealth’s growth or protection. Professional financial advisors are well-versed in decisions involving estate planning, investments, insurances and taxes.
High net worth individuals normally opt for private wealth management as their source for the best financial advice. It differs from traditional financial management in the respect that it caters to the management of assets that invest capital to generate profits, usually taking a risk. The wealth enhancement of high-value assets is achieved through cultivating personalized investment strategies to maximize returns. This is in addition to the financial planning aspects of tax management, mortgage planning, legacy planning and more.
If you’re a high net worth or ultra-high net worth investor, you may want to consider strategies to protect your assets. We discuss these extensively in our book, “The Art of Protecting Ultra-High Net Worth Portfolios and Estates – Strategies For Families Worth $25 Million To $500 Million.”
The more wealth you have, the more complex money management becomes. Higher taxes, comprehensive investment portfolios, abundant properties and countless charitable works must be accounted for. Risk management is a critical part of financial planning for high-net-worth families, as they are more prone to liabilities.
Financial advisors or wealth managers outline your values and objectives and construct a financial forecast. They use this to recommend investments or strategies which suit your current financial state.
Experienced and intelligent advisors can determine the various investment vehicles for your assets. Diversifying your investment portfolio reduces cost and risk. To learn about improving your portfolio performance through asset allocation and diversification, you can read our Performance Guide.
Financial advisors can keep track of your multiple investments, analyze their progress and present periodical reports for you to review. They communicate with you to ensure your goals align with your investment profile.
Legacy Planning and Succession
Substantial wealth takes years to build, and passing it down to your inheritors can leave you with an uneasy feeling if you’re not confident in their financial management ability. Wealth managers are equipped to help you devise a legacy plan that enables your funds to stay intact.
Your advisor can suggest starting them off with a reasonable allowance, instilling financial responsibility, or setting an annual sum in their name as an inheritance. If you’d like your future generations to inherit your business, they can plan a business exit strategy to maintain the company’s best interests.
Medical bills, lawsuits, life expenses, unemployment and other unforeseen circumstances can cause a strain on your savings. Tax-exempted insurance policies are a great option to allocate assets so that your active income is not affected by liabilities.
Wealth managers evaluate your risk factors and recommend the next step accordingly. For example, diversification of your investment assets can reduce the consequences of market volatility. To learn more about preparing for investment risks and protecting your assets, you can read more in our guide, detailing 5 critical shifts that can aid high net worth individuals.
Charitable giving is one of the core values of high earners. Not only does setting up a foundation give you a lasting philanthropic legacy of generosity, but it also helps in tax mitigation. This can help you maintain your level of income while making a profit from other investments.
Divide the Family Income
Higher taxes are imposed on higher incomes. One way to counter this is for high net worth families to split their income, reducing the tax burden. This can save thousands of dollars when shifted to low-income family members.
Private wealth management offers an array of services exclusive to wealthy families, which a traditional financial advisor is not acquainted with. If you’re a high-net-worth individual looking for more financial advice on managing your wealth effectively and sustainably, contact one of our wealth managers for a free consultation.
How Can Financial Advice Help?
When you have a wide range of tasks, knowing where to start can be confusing. Financial advice can help you stay on track to achieve your long-term goals by creating a financial plan and strategically investing in assets. You achieve peace of mind confidence in the fact that an expert controls your finances and will work towards the best possible outcome for you.
Financial advice can protect you from making poor financial decisions, support you through difficult life circumstances, and help you review your and your family’s goals. Advisors use techniques to formulate strategies that can be implemented according to your financial portfolio. This allows them to come to practical conclusions that can safeguard your wealth and future finances for your family, structure your investment plans, and organize your taxes.
Asset management plays a big role in financial advice for affluent people. Discretionary asset management gives you advisor authority over investment decisions and your assets. Non-discretionary asset management requires your approval for any investment or trade decisions. The strategies that advisors use differ accordingly, so it is best to be knowledgeable about such affairs.
The Importance of Finding the Right Financial Advisor
Having consultations with financial advisors can give you an idea of which service you are looking for. They can analyze your goals and give you advice if that is their area of specialization. Otherwise, they can help you identify whether you would benefit more from an investment manager, wealth manager or financial planner. If you would like a free consultation with one of our financial experts, schedule a meeting with us.
It is best to search for vetted advisors who have relevant experience. As high net worth and ultra-high net worth individuals, you would want an advisor who does not take advantage of you. Fiduciaries are reliable advisors as they are legally bound to put your interests above their own. They cannot recommend a course of action that would result in them earning a higher commission if it does not serve your financial goals.
Fee-structures are also important to consider, so you should know why to avoid free financial advice. Fee-based financial advisors such as investment advisors or brokers may collect commissions based on your investments, which could result in conflicts of interest. Fixed fee financial advisors charge a single predetermined fee for their services. Fee-only financial advisors only charge for their financial advisory services, having no conflicts of interest.
Using your network and connections can prove valuable in finding a suitable financial advisor or firm. It is necessary to do background research into the person you want to trust your assets to. Their certifications, experience, clientele, reputation, and the services they offer will be factors in your decision. With an ultra-high net worth of over $10 million, you can benefit from reading our exclusive guide on how to determine the best financial advisor for yourself.
Successful, wealthy people usually have much more on their minds than how to manage their finances. Running a business, building an enterprise, working up the career ladder all take a considerable amount of time and immense effort. This makes it all the more important for them to ensure that the money they earn is spent and allocated wisely. While they may not have the luxury of time or the mental space to do that, financial experts are trained for this exact purpose.
Financial advisors have a vast knowledge-base of the financial world and can appropriately guide you with the best high net worth financial advice. From where to invest to determining the best insurance policy to creating a retirement plan, they know it all. As a high net worth or ultra-high net worth earner, in particular, your priority should be to entrust your finances to worthy individuals who have the expertise to handle such a large sum of money. At Pillar Wealth Management, we provide financial advice to investors with liquid assets of $5 million to $500 million. Book a meeting with one of our consultants today to get started on organizing your financial life.
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