Nashville is the capital of Tennessee. It was not very long ago that the city was considered the third-fastest growing city in the US. Growth and employment generally lead to greater prosperity and wealth creation. Healthcare and education are the two biggest industries in the city. Nashville is also the headquarters of many corporations like HCA Healthcare, insurance giant AIG, Gibson Guitars, Capitol Records, Ingram Industries, and many more. If you are a high net worth or ultra-high net worth individual living in the Nashville area, who happens to have $10 million or more in liquid assets, then do check out this complimentary guide on choosing the best wealth advisor.
With so much industry and high net worth in Nashville, there is a sizeablepopulation of high net worth individuals located in the Music City. One topic that may be on the minds of many of them is wealth management Nashville firms. The more money one has, the more responsibility there is on that person’s shoulders to make the right decisions related to that wealth. Firms like Pillar Wealth Management have decades of experience in helping clients with $5 million to $500 million in investible liquid assets do just that.
Before you work with a wealth manager, it is important to understand some key facets of wealth management. To make life easier, we have decided to write a guide on wealth management for folks in Nashville. In this guide, we will look at what the long term perspective from wealth management is. We will touch upon wealth management planning for retirement. We will also explore some of the qualities of the top Nashville financial planning practices. Lastly, we will discuss some key aspects of Nashville private wealth management firms that have been successful.
Table of Contents
Long Term Perspective From Wealth Management
Wealth management is a specialized area of financial advisory that focuses on managing the financial situations of wealthy individuals and families. By wealthy, we mean high net worth and ultra-high net worth individuals who have investible liquid assets greater than $1 million and $30 million respectively.Pillar Wealth Management, for example, works with clients who have $5 million to $500 million in investible liquid assets.
Managing millions of dollars in wealth and connecting them to short, medium, and long-term goals of a client require a long term perspective from wealth management firms. The very best firms think a few decades ahead. Their goal is to help clients achieve their goals regardless of the timeline. Whether it is planning for marriage after two years or giving away money to grandchildren a few decades down the line, a good wealth management Nashville firm has to structure the finances in a way that makes all of those things possible. We have discussed 5 critical shifts that families and individuals, with $5 million to $500 million in liquid assets, need in order to maximize portfolio performance and the chances of attaining all life goals in this short guide that you can download here.
Another manifestation of long-term strategic thinking is the stress testing of client portfolios. It doesn’t matter if the market is doing well and the economy is going strong. Every few weeks/months, a reputed wealth manager will simulate black-swan events or unusually negative scenarios to see how the portfolio holds. The goal of wealth management is to position the client to withstand all sorts of major shocks while still staying on track to achieve all financial goals. Feel free to speak to Hutch Ashoo to know more about Pillar Wealth Management’s long-term approach in managing high net worth wealth.
Wealth Management Planning for Retirement
Retirement planning is a major part of any wealth management practice. Every person thinks about securing his/her financial future and high net worth individuals are no different. Planning out finances in a way that can allow affluent families to live a certain kind of lifestyle is something that wealth management planning for retirement can achieve.
When to retire is a question that crosses everyone’s mind. The decisions of an experienced wealth management Nashville firm can influence the answer to this very important question. Ideally, you would think of retirement when you feel confident about having the financial security to make that call. Feel free to schedule a free consultation with Pillar Wealth Management to discuss your retirement plans or thoughts about retirement.
It is also advisable to start planning for your retirement as early as possible. We have discussed this point in detail in our bookThe Ultimate Guide to Choosing the Best Financial Advisor: For Investors With $5 Million to $500 Million in Liquid Assets. Feel free to check it out. The power of compounding works best when you are invested for a longer duration. Young professionals especially need to start as soon as possible. Think about those life goals if you haven’t done so already.
Mid-career professionals should also act as it is never too late to start planning for retirement. You can start thinking about what kind of retirement corpus you need. As for individuals who are approaching retirement in the near future, the time on hand should be utilized to start structuring finances that will allow you to sustain your desired lifestyle while achieving all your life goals which are still unfulfilled. Tax planning also becomes important because withdrawals can attract significant taxes. Passing on your business to the next generationwill needcareful succession planning.
Nashville Financial Planning
Financial planning is the process of translating your desire to achieve clearly defined life goals into actionable decisions. It involves a careful and comprehensive assessment of your current financial situation, your liquid and non-liquid assets, your debts, incomes, and every aspect of your financial life. Once your current financial position is known and once your desired destination is known, a financial planner will then prepare an actionable plan to help you achieve all your goals. The very best of Nashville financial planning firms will not just prepare this plan, but regularly revisit and update it as well.
If you want to explore financial planning in detail, then we encourage you to download this complimentary guide on choosing the best financial advisors for individuals with $5 million to $500 million in investible liquid assets. Since we have mentioned financial advisors while discussing financial planning, we should clarify the difference between the two. A financial advisor Nashville offers financial planning. Financial planning is a process, a financial planner is a specific kind of financial advisor, and financial advisory represents a broader field of work in finance.
You can either work with a dedicated financial planner or you can work with a wealth manager. A wealth manager will have experience in high net worth financial planning and other aspects of financial management. So, wealth management gives you an array of services under one roof. Financial planning, meanwhile, can be done for high net worth as well as average middle-class accounts.
The most common qualification of a financial planner is CFP or Certified Financial Planner. It is awarded by theCertified Financial Planner Board of Standards, Inc. If you are unsure whether to work with a financial planner or a wealth advisor, then feel free to start a conversation with Hutch Ashoo and discuss.
Nashville Private Wealth Management
As a high net worth or ultra-high net worth individual, you want the best for yourself and your family. In order for that to happen, your decisions regarding your wealth have to be well-informed and well-thought-out. A Nashville private wealth management firm with a decent amount of experience and expertise can help you make those decisions.
One of the things that differentiate an average private wealth management Nashville firm from the top ones is their personalization and customization. Wealth management, in our opinion, cannot be one-size-fits-all or a standardized process. It has to be unique for every individual. The reason is that every high net worth individual will have different goals and a different financial situation. Their intended lifestyles will be different and their finances will be structured differently. Call us for a free consultation and get to know how Pillar Wealth Management knows each of its clients by the first name as well as everything about their financial situation and life goals.
Secondly, a good private wealth management firm will focus as much on making money as on saving money. One of the responsibilities of a wealth manager is to “plug the gaps” and minimize the leakages of cash outflows from a client’s portfolio. Some examples of such leakages could be higher taxes, higher investment fees, and so on. We have discussed specific scenarios in our guide on improving portfolio performance for investors with $5 million to $500 million in liquid assets. Feel free to download and read it.
Lastly, a top private wealth manager will understand asset allocation and risk management. At Pillar Wealth Management, we have had clients whose portfolios went from more than $30 million to about $5 million due to a major market crash. High returns are great, but at what risk?
Ethical Wealth Management Nashville Firms
If you are going to trust someone with your hard-earned money, then that person better be honest and fully committed to your well-being. This is something you expect from your wealth manager. We believe that there are a few ways in which you can ensure such alignment between your interests and the actions of the wealth manager.
We believe that a fee-only compensation model goes some way to ensuring a balance between the financial incentives of the wealth manager and the quality of advice that you receive. A fee-only model is one where the fee is pre-determined and there are no commissions. This ensures that the wealth manager recommends products that are best for the client. There is no “vested interest” as such.
In the financial advisory industry, it is not uncommon to have advisors “recommend” a product to the client and then get a commission from the product company for “aiding” the sale of that product. This kind of compensation model is commonly known as a fee-based model or a commissions-only model. In our opinion, this kind of setup encourages the advisor to recommend specific investment/financial products to a client even if those products are not necessarily the best option for the client.
Another qualification that we think is helpful is that of a fiduciary. If a wealth manager is a registered fiduciary, then he/she is bound legally to work in your best interests. If there is ever a conflict-of-interest situation, then as a fiduciary, the advisor has to point out the situation to you. A fiduciary has to register with either the SEC or the local state regulator.
A Word On Pillar Wealth Management
You now know how wealth management takes a long-term perspective, how financial planning is different from financial advisory, what the role of wealth management is in retirement planning, and what the qualities are that differentiate an average private wealth manager from a great one.
As you now continue your search for finding a top wealth manager in the Nashville area, we want you to take a moment and learn what Pillar Wealth Management can offer you. We are a niche wealth management firm that serves clients with $5 million to $500 million in liquid assets. We provide a unique commitment to saving our clients $100,000 for every $10 million in assets that a client asks us to manage. We do not aim for high-volume business and took on only 17 clients last year. The focused approach allows us to go deep into each client portfolio and work out the best possible wealth management plan.
Our approach also allows us to regularly stress test our client portfolios and stay in close contact with them. We pride ourselves on being able to provide white-glove wealth management services.
Hutch Ashoo and Christopher Snyder are the expert founders of independent, fee-only, and fiduciary wealth management firm Pillar Wealth Management. If you would like to speak with them or simply ask any questions about how custom and trusted wealth management advice is offered to highnet worth individuals with $5 million to $500 million in investible assets, then feel free to start a conversation.
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