The Complete Guide to What We Do
If you have over $10 million in liquid assets, you’ll definitely want to preserve it in the long run. You must have invested a lot of effort, time, and dedication into building such a spectacular wealth portfolio, and we would like to highlight that maintaining it warrants the same level of diligence and hard work. This is why smart high net worth and ultra-high net worth individuals work with a professional financial advisor Durham for effective wealth management Durham.The services of a wealth manager encompass investment management planning as well as estate planning, tax guidance, financial advice, and legal assistance. Make sure you read our guide on how to choose a wealth management advisor to ensure your wealth portfolio is in good hands.Also, feel free to contact Pillar Wealth Management for a free consultationto begin a successful wealth management journey.
Pillar Wealth Management takes pride in helping individuals with $5 million to $500 million in liquid assets determine their investment goals to maximize their gainswhile staying steer clear from risks and losses.We treat all our clients as separate individuals and take the time to identify and evaluate theirunique financial needs, goals, and preferences. What sets us apart in the competitive industry is that we ditch the cookie-cutter approach and provide highly personalized servicesfor maximum client satisfaction.
Let’s dive right in to explore the nitty-gritty of investment management planning for high net worth and ultra-high net worth individuals.
Table of Contents
- Understanding Investment Management Planning
- Investment Management Planning for Modern-Day High Net Worth and Ultra-High Net Worth Individuals
- Four Investment Strategies You Can Benefit From
- Tax Management: A Crucial Part of Your Investment Management Planning
- Create a Strong Investment PortfolioWith Pillar Wealth Management
Understanding Investment Management Planning
Investment management planning is all about building a strong portfolio of bonds, stocks, and other investments. It is crucial for retirement planning and money management, especially for high net worth and ultra-high net worth individuals who want to maximize what they have to achieve long-term financial serenity.
Investment management typically involves devising strategies for buying and selling investments and managing assets to optimize your portfolio. The idea is to ensure that your portfolio continues to align with your financial goals, financial priorities, and risk tolerance.
At Pillar Wealth Management, our wealth managers strive to grow your investment portfolio while protecting it against any risks. Whether you’re looking for effective retirement planning and money management services to enjoy your golden years or take your lifestyle up a notch, we’ll be glad to dedicate our expertise and resources to help you achieve your goals. Start a conversation with us NOW!
Investment Management Planning for Modern-Day High Net Worth and Ultra-High Net Worth Individuals
The investment world is becoming more and more complex with each passing day. On top of this, more high net worth individuals than ever are entering their retirement age, due to which they have a significantly low tolerance for risks.
A Forbes Insights surveyinvolving over 200 high net worth investors revealed some interesting data:
- According to 80% of the investors, their wealth management strategy is aligned with their investment goals
- 70% say their investments are performing optimally
- 78% believe that their investment portfolio is sufficiently diversified
- 79% of the investors think that their investment strategies make for a well-balanced portfolio
- 76% report that their wealth management is tax-efficient
Based on these statistics, we can tell that the majority of high net worth investors are satisfied with their investment performance. However,they fail to optimize their ‘wealth’ performance. Many financial advisors and planners take a one-size-fits-all approach to investment management planning. Those affluent investors who realize this know that their approach to portfolio optimization is not ideal. Hence, they are taking or planning to take certain actions for effective wealth management Durham.
- Although 76% of the investors believe their wealth is being managed in a tax-efficient manner, there is a need for greater tax efficiency and cash flow management for intergenerational and related wealth transfers.
- 49% of the investors believe that their investment goals should be defined more carefully and they should be perfectly aligned with the investment strategies in place.
- 42% think that the range of investible assets should be expanded to maximize portfolio growth.
- 36% want their portfolios to be in tune with their financial needs and risk tolerances and recession-proof so they can stay on top of the opportunities and risks.
- 42% of the investors are of the opinion that all the pieces of their investment portfolio should work together for optimal results.
Considering this, it is easy to see why affluent individuals prefer working with professional wealth managers who are experts in their fields for effective wealth management Durham. The experts help them grow their portfolio, and protect and distribute their assets to ensure they achieve their desired lifestyle in retirement.
Four Investment Strategies You Can Benefit From
Developing smart, well-thought-out strategies is critical for investment management planning for high net worth and ultra-high net worth individuals. The following strategies can help you maximize your savings and investment returns while protecting your portfolio.
1. Keep a Tab on Investment Fees
When you have a lot of money to invest, you must know the fees you’re paying because they can add up. For instance, if you have invested $6 million in mutual funds, you’ll be spending a fee of $60,000 annually at an average expense ratio of 1%.
While it’s good to pay the fees for an investment that consistently performs well, you must always compare different options and see if you can achieve the same outcomes at a lesser fee. An option that tracks the same index but has a significantly lower expense ratio can work wonders for your long-term returns.
2. Diversify, Diversify, Diversify
When you have many assets, the need to diversify your investment portfolioheightens. Generally, the more diverse your portfolio is, the lower your portfolio risk will be. As a high net worth or ultra-high net worth investor, you automatically get a lot of investment opportunities. Therefore, get ready to invest in municipal bonds, taxable bonds, private equity, national equities, global equities, hedge funds, real estate, commodities, and other assets.
We also urge you to read our book – The Art of Protecting Ultra-High Net Worth Portfolios and Estates – Strategies For Families Worth $25 Million To $500 Million to better understand the ins and outs of high net worth investment management planning.
3. Benefit from Tax-free Investments
Traditional strategies aimed at reducing tax don’t work as effectively for the wealthy as for average Americans.As a high net worth investor, you’ll fall into a higher tax bracket. To minimize your tax exposure, you should consider trying out tax-free investments. Tax-free municipals, for example, yield greater results for the affluent population as compared to the general population.
It’s all about a shift of focus from simply managing your investments to laying a strong foundation for long-term financial serenity. Check out our guide to find which five crucial shifts can help you optimize wealth management over the years.
4. Rebalance Your Portfolio
Another important investment strategy for high net worth and ultra-high net worth investors is to rebalance the portfolio on a regular basis. It ensures that your assets are allocated correctly and exactly where you want them to be for effective wealth management Durham.
A professional wealth manager can help you maintain awell-balanced portfolio as per your investment goals, financial needs, and risk tolerance. Healthy asset allocation enables you to make the most of both active and passive management. At Pillar Wealth Management, our goal is to make sure you invest in assets that help you control your costs, increase your profits, and achieve financial serenity. You can rest assured that our strategic investment approach touches upon both active and passive management to provide you with a customized and comprehensive investment plan. As a result, you’ll be well-equipped to build and manage a high-performing portfolio that minimizes your risks and maximizes your gains.
This investment approach is particularly beneficial for investors aged 40 and above looking for effective retirement planning and money management. It helps them grow their wealth in the long run despite the market shifts and downturns. For investors aged 60 and above, our wealth managers focus on making more room for passive management for smart asset allocation. This reduces financial risks to a significant extent and allows the investors to maximize their wealth without compromising their financial security.
Working with the right wealth manager is the key here. You can read all about finding the best expert who leverages both active and passive management for creating a well-balanced portfolio here.
Tax Management: A Crucial Part of Your Investment Management Planning
For high net worth and ultra-high net worth individuals, tax management is an important aspect of the investment strategy. As stated earlier, affluent individuals pay huge amounts of money in taxes. On the brighter side, they get a chance to save the most by utilizing smart tax management strategies that help minimize financial losses.
Below is a list of options you can try to save money on your taxes. Based on your specific financial needs and investment goals, you can determine the options that may work best for you.
- Investing in municipal bonds
- Converting the 401k or IRA to a Roth
- Investing in solar panels as soon as possible
- Contributing a large portion of the money to 529 plans
- Investing the maximum to your health savings account
- Contributing as much money to 401k for tax reduction as possible
- Increasing the amount spent on donations and giving
- Donating valuable items, such as real estate, vehicles, stock options etc
- Invest in a Donor Advised Fund (DAF)
- Adjusting the real estate strategy to focus more on income and profits rather than tax minimization
Create a Strong Investment PortfolioWith Pillar Wealth Management
Investment management planning is a step ahead of simple financial planning and in all honesty, it can be difficult. However, with the assistance and support of the right experts, you can achieve all your wealth management Durham and investment goals for a happy, prosperous life ahead.
This is where Pillar Wealth Management comes in! Our wealth managers are fully dedicated and committed to providing you with a tax-efficient, low turnover, diversified investment plan fully customized to your specific financial needs and investment objectives. Instead of relying on failed investment strategies like stock selection and market timing, we utilize carefully curated plans to help you take your retirement planning and money management game to the next level. We will take care of asset management planning as well as the rebalancing of your portfolio with a close eye on changing costs, tax ramifications, and wealth preservation.
To learn more about our services and approach to wealth management Durham, please schedule a free consultation with us.
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