Wealth Management Delaware: How Can High Net Worth Individuals Choose the Right Wealth Advisor?
Are you a high net worth investor with over $5 million in investable assets? If so, you must hire a professional wealth manager for handling your estate. Seeking wealth management Delaware is the key to increasing the value of your assets, making sure your wealth lasts and securing your family’s future against financial adversities. Of course, finding the right wealth manager is a challenge for high net worth investors. To understand how you can hire an expert for personalized investment management, Delaware, we suggest you read our guide to choosing a financial advisor for investors with a net worth of over $10 million. You can also get your answer by booking a free consultation with us.
STRATEGIES FOR FAMILIES WORTH $5 MILLION TO $500 MILLION
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.
Pillar Wealth Management offers white-glove wealth management services designed to provide you with the financial security you desire. We take on a transparent approach to wealth management so that our clients remain aware of how their money is being invested. Our team is committed to using your assets as efficiently as possible to grow your net worth and help you achieve your investment goals.
In this blog, we will be discussing when you need a wealth manager and how you can benefit from the strategies of a wealth manager.
Table of Contents
How Much Money Is Needed for Wealth Management?
All high net worth individuals need wealth management at some point or the other. If you have recently joined the millionaire club, you may be perfectly content to continue riding solo. It’s understandable, of course. You have gotten this far, haven’t you? What could wrong? In our experience – plenty. Seeking help from a wealth advisor can play a pivotal role in sustaining your net worth, plan for retirement, and make the most of market trends.
So, what’s the right time to hire a wealth manager? Typically, this depends on your current net worth. If you ask a wealth management firm, “how much money do you need for wealth management,” the answer will be somewhere between $1 million and $5 million.
At Pillar Wealth Management, we work exclusively with individuals having $5 million to $500 million in investable assets. Unlike most investment and wealth management firms, we only take on a limited number of clientsto continue delivering the type of high-quality service you desire. We don’t believe in offering standard, cookie-cutter services to our clients. Instead, we create tailored investment and wealth management strategies that help our clients achieve their financial goals.
We offer private wealth management Delaware solutions in 4 key areas:
- Alternative strategies for investments, private capital, and liquidity management
- Financial planning
- Advisory services for estate planning, insurance planning, tax planning, and more
- Investing advice on asset allocation, portfolio design and rebalancing, tax loss cultivation, and more
To learn more about how we can help you with personalized investment management Delaware, click here to start a conversation with us.
How Can You Choose the Right Person for the Job?
Getting a wealth manager on board is a necessity for high net worth investors. Unfortunately, most investors end up working with big banks or investment brokers that fail to provide them with what they are looking for.
When you work with these companies, you do so with the belief that their prior experience and expertise in wealth management Delaware can help you make the most of investment opportunities. However, more often than not, you just get saddled with losses. To top it all, you also lose a significant amount of money in high fees and hidden costs.
If you cannot find the right wealth manager for managing your liquid assets, then here are some tips that can help you out:
Are They Goal-Oriented?
Any wealth manager worth their salt will put their clients first. This goes beyond asking about your goals during the initial sessions. A qualified wealth management firm will:
- Question you about your goals and priorities
- Evaluate the best way to help you achieve these goals
- Develop a target-oriented strategy that keeps your costs as low as possible
- Run periodic checks to ensure the strategy is working as expected
- Tweak the strategy to match market conditions to continue generating high returns and controlling losses
- Track progress and see whether the wealth management strategy is helping you get closer to your goals
We know what you are thinking. How can you tell if a wealth advisor will deliver on all these fronts? Wouldn’t you need to work with them first? Not necessarily. A good way to distinguish between wealth advisors that only make tall promises and the ones that actually commit is to ask them about other clients.
They won’t be able to divulge a lot of details or share anything confidential. However, they should still be able to provide you with a comprehensive overview of how their goal-oriented approach helped a client achieve their investment objectives. You can also ask them how they plan to help you realize your goals. Consult other wealth managers while you are at it too. In most cases, if multiple firms keep offering you the same solutions, then we suggest you walk away and look for custom services that reflect your needs.
What Do They Say About the Costs of Wealth Management Delaware?
Most high net worth and ultra-high net worth investors only ask about how much fee a wealth manager will charge in exchange for their services. While this is a valid question, it doesn’t quite cover how much wealth management can cost you.
If a wealth advisor avoids answering this question, then it is best to approach someone else. They are not trying to rob you of your money, and it’s really a testament of their inexperience than anything else. Either way, you need someone fully aware of how wealth management works.
To provide you with a summary, here are some of the costs you can expect:
- Taxes on short-term capital gains
- Commissions charged by money managers
- Cost of bond sale spread
- Cost of active vs. passive management
- Margin interest costs
- Internet expenses accrued by a money manager
- Your advisor’s service fee
When it comes to the costs of wealth management Delaware, there are multiple variables at play. So, the more informed your wealth manager is, the more money they can help you save.
Do They Offer Active or Passive Management?
As far as the strategies of a wealth manager go, this is one of the most important things that you need to know before you work with them. A wealth manager that makes use of active management tweaks your portfolio and moves securities around to try and beat the market. On the other hand, passive management focuses more on long-term investments.
Both approaches have their pros and cons. If your wealth manager only relies on active management, then you can expect to lose a lot of money in taxes on short-term capital gains. Active managers also charge a higher fee for their services. Passive management keeps your tax payments to a minimum and also costs less in service fees. However, you won’t be able to earn when the market is performing well.
At Pillar Wealth Management, we use active as well as passive management strategies to offer you the best of both worlds. This allows you to benefit from active management while keeping your costs to a minimum. You can also expect to pay a lower fee.
To learn more about the differences between active and passive management and how this affects ultra-high net worth investors, we recommend ordering a free hardcover copy of our book – The Art of Protecting Ultra-High Net Worth Portfolios and Estates – Strategies For Families Worth $25 Million To $500 Million.
Do They Have a Plan for Tax Minimization?
Since we are on the subject of high tax payments, here’s another useful tip for screening wealth management firms: ask them about how they plan to help you minimize your taxes. Given how individuals with a high net worth have to pay a lot more in taxes than regular wage earners, utilizing tax avoidance strategies is a must for investors looking to increase the value of their assets in a cost-efficient manner.
An experienced wealth manager will actively search for tax minimization opportunities and create tax benefits for you. Remember, earning high returns isn’t the only way to grow your passive income. You can also sustain your wealth by lowering your costs wherever possible. A wealth manager that is familiar with the tax code and knows how to use it to your advantage is a critical asset in this regard.
The wealth advisors at Pillar Wealth Management excel in this area. To learn about how we help our clients minimize their taxes, click here to start a conversation with us.
How Can They Help You Manage Investment Risk?
Becoming an investor to earn passive income can be appealing. However, without appropriate risk management, you put yourself in danger ofincurring massive losses that can diminish your wealth. If you are hiring an advisor for personalized investment management, Delaware, you need to check what tools and strategies they use for controlling portfolio risk.
Here are a few things to ask about risk management when hiring a financial advisor:
- How do they plan to diversify your portfolio?
- What is their strategy for asset allocation?
- How often will they make changes to your portfolio to balance the risk?
- What risk management models do they utilize for controlling your portfolio risk?
- Do they plan on creating investment strategies that complement your risk appetite?
If the wealth management firm utilizes historical data for preparing against economic downturns and market volatility, then you can also ask them about how extensive this data set is. Most firms use data that goes back 10, 20, or 30 years.
Unfortunately, these data sets are insufficient as they do not account for several global events that occurred in the past. For instance, you cannot expect a data set that goes back 30 years to record the impact of the Second World War or the 1957-1958 Pandemic involving a new strain of Influenza A.
At Pillar Wealth Management, we make use of several risk management techniques that can help you minimize losses resulting due to economic uncertainty or market volatility. These include:
- The Efficient Frontier Model
- Prudent asset allocation to ensure high levels of diversification
- Regular portfolio rebalancing
- Extensive data sets recording events from 1925 onwards
Always Get a Second Opinion
Comfort zones can be dangerous. If you are already working with a wealth manager, but are not entirely satisfied with their performance, then we strongly recommend you get a second opinion. After all, this is your hard-earned money we are talking about.
You might be reluctant about going through the process of finding a wealth manager all over again, but it’s important you act quickly. This improves your chances of undoing the damage caused by an incompetent wealth manager and securing your future.
Wrapping It Up
Personalized wealth management, Delaware is the first step to protecting your assets and providing your family with the financial security needed to live a happy and comfortable life. If you are an investor with a liquidity of $5 million to $500 million, Pillar Wealth Management can offer you tailored solutions for maximizing your wealth.
Our team commits to helping our clients realize their goals without the added stress that comes with investment management. To learn about our wealth advisory services, visit our website to book a free consultation.
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