The Complete Guide to What We Do
In the world of high net worth individuals, wealth management plays a key role in ensuring financial security. HNW wealth management firms assist wealthy clients in accomplishing their financial objectives and goals by offering them multiple investment advisory and financial services. But what exactly is HNW wealth management and how much does it cost to use one? This article contains the answers to all your questions related to wealth management. Also, make sure you read our ultimate guide for investors with $10 million and more to know how you should choose the best HNW wealth management company.
What Is HNW Wealth Management?
If you’re new to the millionaire club, you might already know of wealth management. However, you may not have an in-depth idea of what is HNW wealth management. In simple terms, high net worth wealth management involves the management of assets of high net worth individuals or accredited investors. At Pillar Wealth Management, we offer wealth management to high net worth and ultra-high net worth individuals who possess liquid investable assets worth $5 million or more.
Wealth management typically encompasses a variety of services such as insurance planning, retirement planning, estate planning, tax management, asset allocation analysis, risk management, banking, accounting, and other financial services. Book a free consultation with our high net worth wealth managers to learn more about the services we offer.
Insurance planning includes risk assessment and identification of the best insurance coverage to minimize those risks. It is one of the prime parts of a comprehensive wealth management strategy.
Many affluent individuals opt for insurance planning to ensure that their wealth stays safe in case of a disaster or any unforeseen situation. However, selecting the ideal insurance plan is a complex task, to say the least. For instance, insurance companies are quite skilled at getting clients to sign up for plans they don’t need.
In such cases, an HNW wealth management firm can help you choose the best insurance coverage so that you get the financial serenity you always dreamed of!
Retirement planning involves establishing your retirement income goals and planning the steps you’ll take to achieve those goals. It includes identification of income sources, calculation of expenses, execution of a savings program, and management of wealth, assets, and risks. Retirement planning is a task that every high net worth and ultra-high net worth has to take up at some point in their life.
Our competent wealth managers can help you develop a retirement plan that is aligned with your long-term financial goals. We will assist you in choosing investments that will create a passive source of income after you retire. This way, you can live a stress-free retirement! Don’t forget to read our guide, Improving Portfolio Performance, to know how you can receive a higher passive income from your assets.
Several high net worth and ultra-high net worth individuals leave their business and assets to their offspring after they pass away. While this process seems easy, it’s actually quite complicated and marred by plenty of obstacles. In our book, Art of Protecting Ultra-High Net Worth Portfolios and Estates – Strategies for Families Worth $25 Million To $500 Million, we talk about some of the problems associated with estate planning.
If you don’t have a comprehensive estate strategy, your wealth and assets may not be passed on to the right beneficiaries. Moreover, your beneficiaries may have to pay exorbitantly high inheritance tax. Our wealth managers can help you create a thorough estate plan so that your beneficiaries receive the wealth and assets without having to pay any unnecessary taxes.
Tax management is the analysis of your financial situation to ensure that your tax liability is minimized. It covers multiple considerations such as size and timing of the income, the timing of purchases, and planning for other expenditures.
Our team of independent wealth managers has solid knowledge about tax deduction strategies. We will do n in-depth analysis of your portfolio to identify tax-saving areas. Contact us to learn more about tax-minimizing strategies and how to develop a tax-efficient asset portfolio.
Asset Allocation Strategies
Asset allocation is an investment tactic that aims to strike an optimum balance between returns and risks. Most financial professionals unanimously agree that asset allocation is one of the key strategies that an investor can adopt.
Our experienced wealth managers at Pillar Wealth Management acknowledge that every investor has their own set of financial goals, risk tolerance, and investment horizon. We are aware of the fact there is no fixed method of determining the optimal asset allocation for every investor. Therefore, we take all such details into account when analyzing your assets and formulating an asset allocation plan for you. We spend several hours to ensure that the strategy we create for you to complement your needs and requirements.
Several affluent investors invest their wealth in multiple financial markets. Even though this is a good strategy for wealth maximization, there are a number of risks associated with it. For instance, a market can crash within seconds and can potentially nullify your long-term gains.
At Pillar Wealth Management, we offer risk management services to high net worth and ultra-high net worth clients. We devise plans to lower your risk from such volatile market shifts.
Why Should I Use HNW Wealth Management?
In this section, we’ll discuss one of the most frequently asked questions, “Why should I use HNW wealth management?” After all, you can get all the services mentioned above from various financial companies.
While we do not disagree with this, we do want to inform you that our wealth managers at Pillar Wealth Management can provide various investment advisory and financial planning services to high net worth individuals such as yourself. We will closely evaluate your portfolio and your current financial situations to offer you a holistic financial plan.
Say you aim to launch a new business or want to start a charitable foundation or simply want to plan for your retirement. In such cases, a wealth management firm will help you achieve your goals in the best possible way.
Here are some reasons to highlight why you should use HNW wealth management.
You Have to Pay an Increasing Amount of Taxes
The only drawback of making investment gains that you have to pay taxes on them. However, if you use a high net worth wealth management firms, you can effectively minimize your tax obligation.
Our wealth managers will study your financial situation to create a tax strategy that will help you accomplish your goals. For example, we can recommend you invest in tax-saving investments such as municipal bonds or guide you on how to best leverage tax holidays.
You Want to Plan for Your Retirement
Saving for retirement is probably one of the biggest objectives you will have in life. Using a high net worth wealth management company will help you in this area so that after you retire, you have enough money to spend a worry-free retirement.
Alternatively, using a wealth management company will even help you accomplish any post-retirement financial goals that you may use. Whatever plans you have for retirement, our wealth managers have the expertise, experience, and capability to assist you. Don’t forget to read our ultimate guide and know the critical shifts you need to make to maximize portfolio growth techniques!
You’re Not Making the Best Use of the Available Investment Opportunities
Several high net worth and ultra-high net worth investors only choose to invest their wealth in bonds, stocks, and cash. However, this way, they miss out on several high-return yielding investments. Alternate investment options such as hedge funds, private equity, commodities, and real estate are all lucrative choices.
Thus, using a high net worth wealth management company can help you leverage all the available investment choices to maximize your wealth. Click here to read our special guide on how to choose the best high net worth wealth management that will help you optimally utilize the various investment opportunities.
How Do I Find HNW Wealth Management?
If you have made up your mind to use the services of a wealth management firm, you may be thinking, “How do I find HNW wealth management.” Fortunately, there are several ways for you to locate the best high net worth wealth management firms near you. Some ways to do this include:
Recommendations from Family Members and Friends
The easiest way to find the best wealth management company is to ask your family members and friends which firms they have used and are satisfied with. This technique is especially helpful if your family members and friends are high net worth individuals as well. There’s a high chance they can get you in touch with wealth management companies they have used themselves.
Research the Internet
Thanks to the wide availability of the Internet, you can now easily find out about wealth managers located near you. A quick Google search will show you a number of high net worth wealth management companies.
However, several wealth management firms invest in Google Ads so that their company ranks at the top on the search result’s page. Thus, simply looking up these firms isn’t enough. Rather, you should read online reviews and check the ratings for each of these companies as well. For instance, you can use websites such as the Better Business Bureau to read testimonials from real-life users and learn the pros and cons of hiring each company.
Once you have shortlisted the wealth management firms with the best reviews, you should get in touch with their wealth managers and ask them questions about their investment approach and test their knowledge of the various financial markets. This way, you’ll have a fair idea of whether the firm is equipped to handle your portfolio or not. In our guide for investors with $10 million and more, we have discussed several key questions you should ask a wealth management firm before officially hiring them.
How Much Should I Expect to Pay for HNW Wealth Management?
If you’re a wealthy individual and have decided to use a wealth management firm, you must be thinking, “how much should I expect to pay for HNW wealth management?”
Well, there’s no one answer to your question as different wealth management companies charge their clients differently. However, the most common method involves wealth management companies charging a fixed percentage of the assets under management (AUM). Generally, the percentage that a wealth management firm charges is 1.02% of the total assets under management per year for an account of $1 million.
Moreover, high net worth individuals may have to pay less since the fee schedules work on a sliding scale that lowers the percentage charged for such individuals. For instance, clients who have $1 million of assets under management will typically be charged 1% of assets annually, whereas clients who have $10 million will be charged between 0.5 and 0.7%.
At Pillar Wealth Management, we have a completely transparent fee structure where we charge clients a fixed yearly fee. Our clients can avail our services as frequently as they require without having to pay any additional charges that other financial companies in the industry usually charge. Use this link to sign up for a free consultation and learn more about our fee structure.
Last Few Words
In today’s world, there is a myriad of financial institutions and wealth management firms that you can use. However, only the best HNW wealth management firms will successfully provide you with the financial security and serenity that you always wished for. Some of the factors you should evaluate them on are their experience, track record, list of services offered, personalized service, etc.
At Pillar Wealth Management, we have more than six decades of working with affluent clients and managing their wealth. Based on our extensive experience, we believe that we are the best wealth management firm that you can opt for. We provide custom wealth management solutions to help sustain and maximize your wealth in the best possible manner. So, click here and begin your consultation with our highly experienced and competent wealth managers.
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