Wealth Management Florida:
Understanding the Difference Between Wealth Management and Portfolio Management

The Complete Guide to What We Do

Wealth Management Florida

Being a high net worth business owner, taking out the time to manage your assets and overall wealth can prove to be difficult. The amount of effort you’ll put in might end up being overwhelming the more you diversify– and without help from a knowledgeable financial advisor, you may end up drowning in decisions.Click here to learn more about factors to consider when hiring a financial advisorand trusting them with a portfolio worth over $10 million in liquid assets.

Florida portfolio and money management and wealth management can both be a rather time-consuming affair.Today, if you look at the financial sector or just a part of it, you will find that the industry is laced with industry verbiage, redundant designations and countless Florida wealth management tools designed to ultimately “help” make the task easier. But considering your multi-million-dollar portfolio, they only end up complicating the task. That’s where companies like Pillar Wealth Management come into play, specializing in assisting individuals who have $5 million to $500 million in liquid assets.Click here to schedule a free consultation for help managing your wealth.


But even with us, a question arises; what sort of a manager do you need, and what’s the difference? When comparing Florida wealth management vs Florida portfolio management, which one is fit for your needs and can be at the heart of your financial success?

In this article, we will compare wealth management and portfolio management in detail to help you make an informed decision. So, let’s begin!

Florida Wealth Management vs. Florida Portfolio Management

One of the most common misconceptions in the finance industry is that of confusing portfolio and wealth management.

When it comes to Florida portfolio and money management, it is mostly about ponderingdecisions focused onprogression, creation and evaluation of assets currently in your portfolio. On the other hand, wealth management takes on a much broader perspective. It considers all aspects of your finances on a more personal and individual level. It caters to “wealth”, not just assets.

From afar, the two might seem similar, but if you get closer, you’ll find that although they branch from the same trunk, they work on different levels and may even differ in goals from time to time.

A Detailed Look At Florida Portfolio & Money Management

A portfolio is a collection of financial assets, be it stocks, commodities, bonds, cash equivalent, exchange-traded funds, mutual funds, or others. When you talk about portfolio management, you are talking about managing these elements.

Florida portfolio and money managementas a whole looks at all the aspects of your portfolio and the liquid cash that you have, the investment decisions in particular. It also includes considering asset allocation, balancing risks, estimating performance, and a certain degree of forecasting in order to find a suitable mix for you.

Some of the main elements considered when it comes to portfolio management include determining the strengths, weaknesses, opportunities and threats (SWOT) of liquid assets. This in turn helps the portfolio manager make smarter, more tailored decisions that offer peak performance and a good return.

The bigger your portfolio, the more diverse it needs to be. The more diverse it is, the higher the degree of difficulty involved in managing it.If you have an ultra-high net worth portfolio (over $10 million) and are looking for strategies to protect it and more, here is a guide to help you out.

Example of Florida Portfolio & Money Management

Let’s say you have an investment portfolio of $5 million – slightly diversified and leveraging returns for you – but you feel that it’s not enough. Let’s also assume that it is spread over several (but not enough) S&P 100 index fund (NYSEARCA: OEF) and stable-dividend paying shares such as Coca Cola (NYSE: KO).

If you hand this to an investment portfolio and money manager in Florida, you will find that the first thing they’d do is distribute your funds over a broad range of different options – and that doesn’t just include buying shares of different companies and investing in separate funds.

In fact, a very common first step by managers is to invest in several vehicles, including but not limited to:

  • Equity funds
  • Real estate
  • Fixed deposits
  • Mutual funds
  • Bonds
  • Gold and more.

This‘diversification’ is done to maximize returns and create a low-risk pattern at the same time. In most cases, you need a large portfolio to get better results – and starting off at the $5 million to $500 million mark is a pretty good way.

Seeing as how, in the example, you already had invested in an index fund and a very stable dividend-paying stock, the portfolio manager will know your priorities, i.e., retirement planning and growth, and therefore invest accordingly.

If you think this is something you’re looking for with your portfolio, click here to schedule a free consultation.

Portfolio & Money Management– A Detailed Look

It is actually not uncommon to see portfolio and wealth management in the same sentence – or even offered by the same individual; yet they are two very different aspects. In Florida, portfolio and money management– especially for high net worth business owners – it is crucial to find someone who has years of experience handling such high-risk, high-reward portfolios.

One of the most considered alternatives to handing portfolio management to a manager is to do it yourself. The goal is to ensure maximum return all while keeping a close eye on the market. If you’re a high net worth business owner, this might not be such a viable solution since it demands a lot of time, patience and concentration; all three of which are valuable commodities that you can spend on your business.

Here, it’s equally important to note the two types of portfolio management;active and passive.

Active portfolio management is when a manager (or team of managers) manages your portfolio on your behalf. They do the research and offer recommendations. In some circumstances, the managers are given complete authority to make decisions as well. These decisions are usually based on short term gains.

Passive portfolio managementis when you set a long-term strategy and keep it for the long run. Here, management of your portfolio isn’t as hectic or active. An example of this is when you’re investing for dividends (or reinvesting dividends) for the long run.

At Pillar Wealth Management, you can expect both, active and passive portfolio management services, along with a range of other management solutions designed specially to help you grow and optimize your assets and therefore financial standing. Click here if you’re interested in learning about how multi-millionaires like yourself can improve your portfolio’s performance.

A Detailed Look AtWealth Management

When comparing Florida wealth management vs Florida portfolio management, it is important to get a little perspective.Note that portfolio management can be a part of wealth management, but wealth management can’t be a part of portfolio management. Wealth management is a much broader term and it doesn’t just focus on helping you make more money, but also includes helping you make sound decisions that safeguard your overall wealth.

The term finds itself entangled in all of life’s financial aspects, including but not limited to:

  • Day-to-day finances and budgeting
  • Tax planning
  • Retirement planning and saving management
  • Estate and legacy planning
  • Risk management
  • Most importantly, portfolio management and many more.

The list above shows that portfolio management is part of the services offered by wealth management companies. While there is no certainty of what the future may hold, 2020 being a prime example of how unexpected things can happen ever-so-casually, the help of Florida wealth management alternatives, the possibility of being better prepared for these situations is a given.

Economic stability; that’s what wealth management offers.

At Pillar Wealth Management, we compare your wealth to past trends, present happenings and future predictions to be able to see how it would currently fare under stress. Then, we make tweaks in a model and compare the results of those decisions under the same ‘stress’, effectively helping us measure and show how you would fare in an economic crisis. Once we have your wealth secured, we move on to contingency planning.

To learn more about our processes and considerations to offer optimal wealth security and shifts that can refine our process, click here to read our guide.

Example of Wealth Management

Considering the example of the same individual we mentioned above, i.e., with $5 million in liquid investment assets to manage, the first thing to understand is that their wealth is more than that. It also includes their non-liquid assets, expendable income, and more. If the individual is looking only for help managing their liquid assets, they need a portfolio manager.

On the other hand, if they need much broader financial oversight to help them mitigate any risk, handle all short- and long-term financial obligations, and make plans accordingly, you need a wealth manager.

Wealth Management Alternatives

When it comes to wealth management, it’s more about taking into account all financial aspects and integrating them into your life as seamlessly as possible, all while making sure you have a plan to lean back on in the future.

At Pillar Wealth Management, we take a holistic approach that learns from the past to make your present better and secure your future. We discussed above how we help you make contingency plans, and one way of doing so is by investing in alternatives.

These are investments that reap the benefits of market inefficiencies and can be broken down into these three categories:

  • Equity
  • Fixed income
  • Real assets

Here, instead of investing in mutual funds, stocks or bonds, you invest in alternatives. These can be artwork, commodities, derivative contracts, securities and more. They are often labeled hedge funds or private equity funds, each offering their own share of benefits.

The degree of risk and return with alternatives is very different. For example, a hedge fund may have identified a bond structure or an artwork that investors can buy now, cheap, and hold on to it until its worth increases. The most important factor at play with alternatives is anticipation.

Wealth managersoften make detailed plans to increase your wealth based on your current financial standing, what you aim to achieve and how much risk you’re willing to take. Once all aspects are considered, the manager begins implementing said plans. They give you a detailed outlook on what needs to be done and how.

As time passes, managers keep on polishing the plans, updating and reviewing them as need be.

Wealth managers are usually a good idea for people who have a wide array of financial investments, income streams and expenses, and need to find a balance between them all. To learn more about choosing a suitable wealth manager for yourself, click here to read our short guide.

A Quick Review – Florida Wealth Management vs. Florida Portfolio Management

For those of you in a hurry, here is a quick comparison between the two terms.

  Florida Portfolio and Money Management Florida Wealth Management
Overall Responsibility Managing portfolio assets Managing overall financials
Area of Focus Investment opportunities and growth Financial sustainability, growth and planning
Function Managing assets and ensuring maximum growth above all else. Assets to handle include stocks, bonds, mutual funds, exchange-traded funds, and more. Managing taxes, accounting, retirement planning, portfolio, risks, estate, legacy and more.
Goal Yield higher returns Maximize wealth

 

Work With Pillar Wealth Management for Impeccable Wealth & Portfolio Management

Financial Advisor Florida

 

At Pillar Wealth Management, we specialize in helping high-profile and high net worth business owners expand their wealth. Our typical clientele includes people with $5 million to $500 million in investable liquid assets. We understand your busy schedule and requirements, and thanks to over 60 years of extensive experience in the field, are confident that we can make financial management a breeze for you.

Whether this includes creating retirement plans, managing a part or the whole of your financials, helping you grow your wealth, Florida portfolio and money management or more, you can count on us. We differ from the rest because we don’t take on every client, nor do we have a cookie-cutter policy that we implement on our clients.

Instead, when you sign up with us, you get to see us, the owners, in action. Your best interest comes even before ours. At Pillar Wealth Management, we’re dedicated to helping you manage your wealth, helping you find answers to all these questions and more to create a robust retirement and legacy plan to give you peace of mind and secure your future. We take pride in offering a “white-glove” approach to wealth management for individuals. Our broad range of Florida wealth management alternatives include, but aren’t limited to:

  • Financial planning
  • Wealth management
  • Tax planning
  • Estate planning
  • Insurance planning
  • Portfolio design
  • Asset allocation analysis, and more.

To learn more about how our high net worth wealth management planning services work in your favor, click here to schedule a free consultation.

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