Wealth Management Missouri:
The Complete Guide to What We Do
Quick Heads Up: If you’re searching for the best wealth management Missouri has to offer, chances are that they are going to question you about your “risk tolerance’ beforehand. If so, you need to hang-up or walk out the door right away.
If you have very little time to spare, and cannot read through this post to find out what you’ve gotten yourself into, let us provide you with a better alternative. If your net worth is $10+ million and you’re searching for Missouri investment advisors, go ahead and visit Pillar Wealth Management’s website for a comprehensive guide for families and individuals with $10+ Million of liquid assets.
This guide will not only educate you about the possible risks associated with hiring an inexperienced or ‘Wall Street firm’ Missouri investment advisor but also give you a glimpse into how our firm’s 30 years of experience can help you achieve financial security. You see, our company specializes in helping investors who have a net worth of $5 million to $500 million in liquid investment assets and illuminating them about the risks of trusting ‘McDonaldized’ financial advisors.
Table of Contents
What If My Advisor’s First Question Is About ‘Risk Tolerance’?
Earlier, we had asked you to hang-up the phone or walk out the door but didn’t explain why. Sure, risk tolerance matters because investing involves risk, and risk tolerance is typically based on our financial and personal goals.
However, when we determine risk tolerance for our high-net worth or ultra high-net worth clients, we don’t base it on their ‘gut feelings’ or something based on what our parents taught us when they were about to hand-out our first allowance.
Instead, your risk tolerance depends on how you plan on spending the rest of your life and how much you’re worth at the time.
Risk tolerance is not a philosophical question and you should never answer based on your emotions.
7 Reasons Why You Should Turn to Pillar Wealth Management Missouri Instead
1. Your Current Advisor Doesn’t Mind Unchecked Spending
We all see how high-net worth or ultra high-net worth celebrities overspend and act as a warning sign for everyone else. It’s quite simple: overspending and not earning enough of an income will eventually lead to you running out of wealth or an effective retirement fund.
Once you reach a certain age or plan on retiring at a particular age, you need to start withdrawing your money from various sources such as 401(k)’s, trust accounts, pensions and IRAs. These withdrawals are also known as ‘distributions’ and this word also applies when you sell annuities or stock options.
Now the question you need to ask here is, “How much does my advisor recommend as safe withdrawal per month?” Additionally, you should also find out what their recommendations are based on.
Remember: if your income from business or work has come to an end, your new income has to be derived from various accounts.
Ideally, the income recommended by Pillar Wealth Management Missouri, would be based on how these very accounts could safeguard your lifestyle for the rest of your life. Click here to schedule a meeting with our fiduciary financial advisors to discuss your income streams after retirement.
What’s the point of partnering with your big Wall Street firm financial advisor if they can’t even manage your retirement fund so that you don’t run out before your demise? In fact, we at Pillar Wealth Management also take into consideration how our clients want to spend their money after death. For instance, we could plan for socially responsible investing, for instance, disbursements to your charity or beneficiaries.
In a nutshell, keeping a check on the amount of money you spend on a monthly basis is very important. If you spend too little, you give up on your current lifestyle. If you spend too much, you may run out early.
2. Your Current Advisor Doesn’t Plan for Large Distributions
When we say large distributions, we mean expenses that have the potential of affecting your finances and aren’t a part of your regular spending habits. In other words, things that you buy a couple of times and typically have far larger dollar values than your average expenses.
Large, one-time distributions often require spending a significant amount of your liquid cash, or perhaps even selling your investment assets. Since both of these decisions will have you dealing with large tax expenses and many other consequences, you will have to consider far beyond your expenses.
This is where Pillar Wealth Management Missouri comes in. Our fiduciary financial advisors will sort out all your workings in advance, to streamline your one-time expenses without any hiccups.
If you have no clue what we’re talking about, we recommend reading our book, ‘The Ultimate Guide to Choosing the Best Financial Advisor for Investors With $5 Million to $500 Million in Liquid Assets’.
3. They Don’t Plan For Unexpected Life Events
We may know what ‘could’ happen, but nobody can know ‘what’ or ‘when’ it may happen.
You may suffer the loss of a loved one, or perhaps incur a very expensive medical expense. You could even find yourself in the midst of an expensive lawsuit or maybe even bear witness to a natural disaster.
In any case, you’re in for both, a personal and financial tragedy. Of course, if you choose to partner with Pillar Wealth Management Missouri, we’ll use our experience to help you decide how to prepare, respond to or adjust your finances, while you sort out your personal affairs yourself.
4. Their Plan Is Wrongly Based on Lifespan Expectations
The Social Security Administration reports that we all have a 30% chance of turning 90-years old, and 14 out of every group of 1000 people will get a chance to celebrate their 100th birthday.
Simply put, if you’re a high-net worth or ultra high-net worth individual, you may have approximately 25-years of retirement ahead of you if you were to retire at 65-years of age. Since some people also choose to do so at the age of 55, their life expectancy after retirement is 35-years.
Long gone are the days when you could make a million dollars last through retirement. If you have anywhere between $5 million and $500 million in liquid assets, and you’re up against 35-years of retirement, you need a strategic financial plan to make it last.
Shocked? If you schedule a meeting with us or read one of our books, we’ll let you in on some of the numerous cases where families/individuals were even worth more than this and still lost a huge portion due to ‘one-size-fits-all’ financial advice.
5. Their Plan Doesn’t Account for Possible Stock Market Implosions
Depending on your investment portfolio, your net gain in the 2000’s should essentially be ‘zero’. An entire decade’s worth of anemic growth and 2 huge stock market implosions led to huge losses and zero returns for millions of investors. Some of them may even refer to this era as the ‘lost decade’.
Still, many Missouri investment advisors continue to pitch their ‘cookie-cutter’ projections, assuming an 8% annual growth rate. If your advisors did so as well, ask yourself this question, “Did you make the 8% annual growth over the last decade?”
If you did, congratulations are in order and by all means, continue to work with your financial advisor. If your answer is “No”, which is more likely, then know this: the stock market WILL implode once again.
Nobody knows when it will, or when it will implode after that. What we DO know, is that this is inevitable.
The stock market could even collapse after you’ve retired or perhaps during the worst time of your life (due to some other tragedy). Sure, investment involves risk, but has your Missouri investment advisor set aside a plan for how you could financially shield yourself when the market does implode?
Is their rebuttal along the lines of, “That is not humanly possible”?
If you partner with Pillar Wealth Management, we’ll show you how it’s done. You can plan for risk by implementing a historically-backed contingency plan, which most Wall Street firms cannot comprehend. This contingency plan is known as the ‘Efficient Frontier’.
You can also read about your basic scope of strategies in detail in our book ‘5 Critical Shifts For Maximizing Portfolio Growth Strategies’.
6. Your Business Sells for a Far Shorter Price Than Your Advisor Predicted
If you are a business owner and plan to sell your life’s work before retiring, its selling price can mean a huge deal for your retirement funds and, of course, Maslow’s definition of self actualization. With that being said, does your current/previous wealth manager investigate the expected selling price of your business or perhaps help you smoothen out the process?
You might have helped your business soar through unbelievable highs and lows, but every last minute you spent planning for tomorrow has led up to this day. How could you possibly trust a financial planner who determines the price of your business based on how much satisfices your retirement fund?
In the past, families or individuals who were worth anywhere between $5 million and $500 million saw their businesses sell for half the price they were expecting because of inexperienced, ill-advised and ‘McDonaldized’ financial management firms.
Pillar Wealth Management Missouri offers fiduciary financial planners who tailor their advice based on more personalized services. Simply put, we not only plan for your retirement based on your lifestyle, but also customize our services based on what you value most.
Click here and schedule a meeting with a holistic financial planner to discuss what strategies your financial situation is best suited for.
7. They Don’t Plan Ahead
Let’s set aside all the warnings of financial failures in the future and instead, talk about your financial strategy for next year.
Do you need to account for your children’s (or grandchildren’s) college tuition? Or perhaps their wedding? Or perhaps even for the first time they make a down payment on their own house?
Every new year brings with it new choices, new challenges and new uncertainties. Simply put, you always have new expenses waiting around the corner and out of sight.
As long as you’re working with the best wealth management Missouri has to offer, unexpected costs shouldn’t bother you. Of course, having to deal with these uncertainties 15-years into your retirement might sting.
For this reason, Pillar Wealth Management offers a holistic approach to financial planning so that you are prepared for every possible uncertainty. If this sounds too generic for what you’re dealing with currently, we’d recommend our book, aptly named ‘The Art of Protecting Ultra-High Net Worth Portfolios and Estates – Strategies For Families Worth $25 Million to $500 Million’.
Risk Tolerance Is the Wrong Question to Ask So Early On in the Process
Since no one can really predict the future, there is something very fundamentally wrong about a Missouri investment advisor questioning you about your risk tolerance.
You see, your risk tolerance is always subject to change, for example, it will be significantly different before and after divorce. For others, the same could be caused by a market correction or even after the demise of a loved one.
Your risk tolerance is NEVER stable and the only thing that can be said for sure, is that it has changed, will change and will keep changing as circumstances change.
The Only Things You Can Control and Your Advisor Should Be Notified About
- Your Spending Habits
- How You Save Money
- The Timing of Big Expenses
- Your Risk Tolerance (not in terms of numbers but how risk averse are you?)
- How Much of a Legacy You Plan on Leaving Behind
Pillar Wealth Management, LLC is your one-stop-shop solution for wealth management Missouri. We are an independent, private and fee-only fiduciary firm and we focus on providing highly customizable wealth management services to only a couple of high-net worth or ultra-high net worth individuals, families and even private company owners.
We offer wealth management services that will help you construct a smooth runway so you can take-off into retirement. Our financial planners also ensure the security of your business and personal assets so you can tend your personal life and affairs, while we manage your finances in the background.
If you like what you read in this post, click here to start a conversation with one of our wealth advisors.
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