The Complete Guide to What We Do
Managing your finances is not easy. Moreover, when you have $5 million to $500 million in liquid assets, it’s pretty much impossible to do on your own. That’s why if you’re a high net worth or ultra-high net worth individual, you might find yourself constantly searching for “private wealth management near me” and asking yourself whether you really need a private wealth manager. That confusion and hesitation is all too familiar and understandable. A lot of high net worth individuals are unsure whether they should go for wealth management services and if yes, then which one. However, in reality, wealth management services are extremely important for such individuals. Only through proper and comprehensive wealth management can they grow their wealth, protect their assets, and fulfill all their financial goals in life. You can learn more about the impact of wealth management for affluent individuals from our handy guide for investors worth $10 million or more who want to achieve financial serenity.
Pillar Wealth Management has a highly skilled and experienced team of wealth managers who are constantly working to help our high net worth clients attain financial success and security. We provide a range of services for our clients, such as investment management, risk management, tax planning, estate planning, retirement planning, and much more. Our wealth managers and advisors have more than 30 years of experience in this industry. This allows them to understand and leverage market trends for better results and improved portfolio performance. If you wish to learn more about that, you can click here to check out our comprehensive guide on the shifts multi-millionaires must make to achieve financial security and serenity.
In today’s blog, we’ll be discussing what private wealth managers do, do you really need them, and how private wealth managers make money.
Table of Contents
What Do Private Wealth Managers Do?
As the name suggests, private wealth managers manage your wealth. However, that is a gross oversimplification. It’s easy to say that they simply manage your wealth, but, in reality, a lot of time, effort, expertise, in-depth knowledge, and critical thinking are required to produce the results that most clients want to see. This is only possible through private wealth management, where wealth managers are involved in offering various financial services. Here are a few of them:
For high and ultra-high net worth individuals, investment management is the foundation of their financial plan. Ultimately, whether you are able to achieve your financial goals or how well you achieve them depends on how smartly you plan and execute your investments. Whether it’s retirement planning or estate planning, all of it ties back to your investment portfolio.
Considering how vital it is for your financial health, this is not something you can experiment with and learn to do yourself over time. That’s why you need private wealth management near me. Wealth managers have extensive experience managing investment portfolios, which allows them to make the best decisions regarding it.
They don’t just focus on short term returns but look ahead and formulate smart investment strategies that keep giving high as well as steady returns for years to come. They plan your investment strategy around your short as well as long-term goals. If you really want the best outcome from your portfolios, click here to read about the critical shifts you must make for maximizing portfolio growth strategies for families worth $5 million to $500 million.
What’s the use of growing all that wealth and accumulating all those assets if you’re only going to lose it all due to some unforeseen events? That is precisely why private wealth managers aren’t just concerned about growing your wealth but protecting it as well.
Too many high net worth families have lost significant portions of their wealth to lawsuits and market volatility.Disasters don’t come with a warning, and no one can see into the future.But you can take some steps beforehand to prevent or lessen the damage it causes. Therefore, one of the services offered by private wealth managers includes risk management. They diversify your assets to deal with market volatility. They set up liability insurances and critical illness insurances to protect your assets and income.
You can read about the other strategies they make to protect ultra-high net worth family wealth here. Alternatively, you can also order a copy of our book, The Art of Protecting Ultra-High Net Worth Portfolios and Estates – Strategies for Families Worth $25 million to $500 million.
Private wealth managers also help you with retirement planning. We know what you’re thinking. Who needs help with retirement planning? You just save some money every month till you’re 60 or 70, and that’s it. You have tons of funds to enjoy your retirement. We hate to break it to you, but that’s not how it works.
There are innumerable factors to consider when it comes to retirement planning. You have to think about the exact lifestyle or goals you have for retirement. Most people struggle with this first step only. That’s because most of the time, people have these vague goals like they want to travel or donate or invest in a friend’s business.
Those are all great goals, but the question is, how do you actually achieve them? How much and where do you invest to ensure a steady stream of income later on? How much do you save vs. spend each month so that you don’t run out early in your retirement? What if you planned for 80 years but ended up living 90 years?
Only a private wealth manager can help you answer all those questions. They can develop retirement plans that best align with your long-term goals while allowing you to live your desired lifestyle without having to limit your choices. Moreover, they help you adjust your retirement plan as you grow through different stages of life or as the market conditions change. You can discuss your own retirement plan by getting in touch with one of our experienced wealth managers here.
When you’ve got a family, it’s not enough for you to attain financial success and serenity in your lifetime. You want to ensure that success and serenity for your family after you’re gone too. So, when you’re wondering, “what do private wealth managers do?” this is it. They not only help you attain financial security but they also assist your family and beneficiaries by assisting with estate planning.
For individuals with $5 million to $500 million worth of assets, estate planning can be especially complicated and difficult. That’s why they need private wealth managers to create strategic estate plans that ensure all your money reaches your intended beneficiaries. Additionally, they make sure that your beneficiaries receive the maximum amount and don’t lose it to taxes.
Tax planning and optimization is one of the most important services offered by private wealth managers and also one of the most overlooked services by others. Everything you do incurs some tax liability. That’s why people who don’t work with wealth managers often find themselves owing more and more in taxes even after they’ve paid their income taxes and other similar charges.
Many high net worth families lose hundreds and thousands of dollars in taxes every year. That could be because their broker or bank is following an active money management style and is constantly buying and selling securities. They might be getting some seriously high returns, but they’re also getting heavily taxed on those short-term capital gains.
That’s exactly what a private wealth manager avoids. He handles your investments smartly, with a mix of active and passive money management, to get you the best returns but also minimize your tax liabilities. You can learn about some more warning signs that your advisor is leading you towards a dangerous retirement from our ultimate guide to choosing the best financial advisor for high net worth individuals.
Do I Really Need Private Wealth Management Near Me?
If you still find yourself asking,“is it worth paying a wealth manager?or “do I need a private wealth manager?” then check out some more benefits of hiring a private wealth manager.
Tailored Financial Plans
Unlike private banks and big investment firms where you’ll be offered the same fixed, pre-made packages, private wealth managers will design tailored financial plans for you. They will sit with you and really understand your financial goals and aspirations in life and come up with customized financial plans that will best help you achieve those goals.
Again, unlike private banks and big investment firms who are a jack of all trades and master of none when it comes to wealth management services, private wealth managers really know what they’re doing. They have extensive experience when it comes to comprehensive wealth management, especially for high net worth and ultra-high net worth individuals. As experts in their field, they are able to guide you much better with more informed and researched advice. At Pillar Wealth Management, our wealth managers have been working in the industry for more than 30 years, so they know all the ins and outs of wealth management. Click here to begin a conversation with us for expert guidance.
Managing Wealth Around Major Life Changes
Private wealth managers don’t just develop your financial plan but also keep adjusting it according to major changes in your life or even the market. Whether it’s divorce or recession, they know exactly what to do to keep your wealth safe, yet keep you on track to achieve your goals and targets. They always keep a close eye on the market, keep evaluating the success of your financial plan as well as your goals, and keep making adjustments as necessary. They do all this so you can attain financial serenity so you truly don’t have to worry about your finances. You can learn more about what the best advisors do by checking out our comprehensive guide on financial advisors for investors worth $10 million or more.
Private wealth managers also offer fiduciary services. This means that they have no conflict of interest and they are wholly committed to helping you achieve your goals. They always act in your best interests, even when it doesn’t align with theirs. Start chatting with one of the fiduciary advisors at Pillar Wealth Management for the best advice and guidance.
How Do Private Wealth Managers Make Money?
Now for all those services, you’d think wealth managers cost you a limb or two. In reality, most private wealth managers usually charge a basic fee on the net amount of assets they handle for all the services they offer. Typically, this fee is usually around 1%. This means that if one client has assets worth $100 million, a private wealth manager will charge them about $1 million as their fee.
Choosing a Private Wealth Management Firm
Private wealth management can be extremely beneficial for high net worth individuals and families. It allows them to grow their wealth in a sustainable manner as aligned with their short and long-term financial goals. It allows them to protect that wealth and minimize any expenses such as taxes. Ultimately, it allows them to attain financial success and security. However, how does one choose a wealth management firm? You can evaluate them according to some of these factors to help choose the right one.
- Track record and experience
- Reviews and recommendations
- Fee charges
Pillar Wealth Management is a 100% fee-only wealth management firm. We have an entire team of wealth managers who have been working in the industry for more than 30 years. This gives them extensive experience and in-depth knowledge to help our affluent clients achieve financial success. We are dedicated to providing customized financial solutions that help our clients fulfill their goals and targets in life. Click here for a consultation session with us today.
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