The Complete Guide to What We Do
A high net worth individual has plenty of decisions to make. Unlike the popular notion that money makes life easier, more money can mean more complexity in wealth-related decisions. It is why there are so many high net worth and ultra-high net worth families looking for wealth management Raleigh firms. If you happen to have $10 million or more in liquid assets, then we have written a special guide on choosing the best wealth advisor for families and individuals like you. Feel free to access it here.
When millions of dollars are at stake, every decision gets that much more scrutiny. A few percentage points here or there can ultimately result in millions of dollars, especially over a few years’ time. Additional costs can add up to significant sums and sub-optimal returns can mean opportunity cost. Therefore, careful decision making is the need of the hour for high net worth and ultra-high net worth portfolios.
Strategies For Families Worth $25 Million To $500 Million
The Art of Protecting Ultra-High Net Worth Portfolios and Estates
The insights you’ll discover from our published book will help you integrate a variety of wealth management tools with financial planning, providing guidance for your future security alongside complex financial strategies, so your human and financial capital will both flourish.
Clients frequently share with us how the knowledge gained from this book helped provide them tremendous clarity, shattering industry-pitched ideologies, while offering insight and direction in making such important financial decisions.
A firm like Pillar Wealth Management has been advising high net worth clients, just like you, for multiple decades now. It works with individuals and families who have between $5 million and $500 million in investible liquid assets. Pillar Wealth Management is skilled not only on the financial side, but also on the personal side. Dealing with family finances requires a personal touch. A good wealth advisor should, therefore, have emotional intelligence along with technical ability.
In this article, we will talk about wealth management investment services, how private wealth management works, whether private bank wealth management Raleigh is a good option, and how to evaluate the pros and cons of firms like Chase wealth management Raleigh. We will also touch upon the offerings of Pillar Wealth Management and how its unique approach to the wealth management process can impact your life. Let’s get started right away!
Table of Contents
Wealth Management Investment Services
As a high net worth individual, you probably need to find suitable avenues where you can invest your wealth. Your goal is not just to protect your wealth, but also to grow it. Pillar Wealth Management works with families and individuals who have $5 million to $500 million in investible liquid assets and guides them via its wealth management investment services. But what exactly are these services?
Investment management offered by a wealth manager is a little bit different from a traditional portfolio management service. A conventional portfolio or fund manager will try to achieve the highest possible rate of return for his/her clients. Wealth management is a little more personal and customized. A good wealth manager will try to first establish a connect between what the client really needs and what financial decisions can position the client to achieve those goals. Feel free to start a conversation with Hutch Ashoo to discuss how Pillar Wealth Management establishes this connection.
For example, if a client has a large enough corpus to achieve a specific goal 10 years down the line simply by earning a moderate return on investment, then an experienced wealth manager will advise the money to be invested in a low-cost low-risk passive fund. Why take on high risk and pay high fund fees if the client does not really need a 15% or 20% rate of return?
Similarly, a good wealth management Raleigh firm will also keep an eye on the various investment costs that are part of the process. You can read all about such costs in this guide on improving portfolio performance for investors with $5 million to $500 million in liquid assets. Basically, it is about the net return after taxes and fees that matter.
Private Wealth Management
Private wealth management is supposed to be just that – private and personalized. A one-size-fits-all approach does not work. Some of the bigger Wall Street firms tend to follow a more standardized approach to wealth management. And there is nothing wrong with doing so. After all, they are geared towards more volume.
The niche wealth management Raleigh firms, that often rank among the top wealth managers in the region, will follow a more depth-driven approach. They may take on fewer clients but go in-depth with the profile of each client. They will try and come up with a customized wealth plan for each one of those clients depending on their unique financial situation and life goals. Get in touch with Pillar Wealth Management to find out how the firm goes about offering its white-glove wealth management service to each one of its clients.
Private wealth managers also generally specify a range of the asset size that they work with. For example, a firm may specify that it only works with individuals who have $3 million or more in liquid investible assets. Note the word liquid. That does not include your home or other illiquid holdings. It includes money that can be readily invested. The definition of high net worth is someone who has $1 million or more in liquid assets. An ultra-high net worth individual is someone who has $30 million or more in liquid investible assets.
You can read more about why customization and personalization make sense in wealth management in this specially compiled guide. The guide is titled “Choosing the Best Financial Advisor for Investors with $5 million to $500 million in Liquid Assets.” It explains well why it is important to first know the client before making a financial plan.
Compensation models of wealth management Raleigh firms
Compensation is a very important part of wealth management practices. It literally impacts the quality of advice that you will get. Generally, there are 3 different compensation models within the industry. The first is a fee-based model. Here, the wealth advisor earns a fee along with commissions. The fee can be based on an hourly rate or a pre-determined amount subject to completing a milestone. The fee can also be a fixed percentage of the total assets that a wealth manager is asked to manage. The commissions come from product companies that “reward” the advisor for helping sell their products to clients. The products can be mutual funds, insurance policies, etc. The important point to note is that there is an incentive for the advisor to encourage certain products in order to earn a commission.
While this is not really a problem, it can become one if the advisor starts to “push” such products to clients who don’t really need them. That is why the fee-only model works better. As you can guess, this model involves only the fee component as we described it above. Since there are no commissions, there is no motivation for the advisor to “push” or “market” any product to the client. The advisor only focuses on recommending what fits the financial plan of the client. The interests of the client are aligned with the incentives of the advisor. Schedule your free consultation with Pillar Wealth Management to find out how adopting a fee-only model has helped the firm for more than 30 years.
The last model is the commissions-only model. Here, there are no fees, only commissions. This is great for people who don’t want to spend too much money on a wealth advisor. But the trade-off isthe service quality for obvious reasons.
Private Bank Wealth Management Raleigh
Private banks in Raleigh offer wealth management services. It sounds like a good bundling strategy for the banks as they get account deposits and a fee for managing high net worth wealth. It is good for the client too as he/she can speak to one entity or one relationship manager and get multiple services under one roof. That saves time and the trouble of meeting multiple advisors.
Private bank wealth management Raleigh offerings also have some downsides. First of all, the expertise of the private bank is banking. Wealth management is a specialized area within financial advisory. It focuses on managing the wealth of affluent high net worth and ultra-high net worth clients. The financial situations and the financial decisions for such accounts are different than the ones associated with the average account. It’s like this – if you want to sell a $20 million, then you want to work with a professional who has done deals for moguls and celebrities in the past. You don’t want to work with any real estate advisor, right?
A wealth manager also has to be independent and unbiased in the advice that he/she offers. A bank may be inclined to recommend investment products like certificates of deposit or mutual funds (if the bank also has an asset management arm) that may not be the best choice from the client’s perspective. However, a fee-only wealth manager can be more independent.We have talked about the relationship between a client’s goals and the investments made in this short guide on 5 critical shifts that are needed to maximize portfolio performance for families worth $5 million to $500 million.
If you are unsure about whether to work with your bank or an independent wealth advisor, then give Hutch Ashoo a call.
Chase Wealth Management Raleigh
JP Morgan and Chase is a big Wall Street firm. It has an investment banking arm, a retail banking arm, a wealth management arm, and many other services. Many big-name Wall Street firms are structured similarly. Whilethe brand name can be the first attraction towards such firms, it is important to understand what a wealth management practice offers and how it delivers those services. After all, you want the best possible setup to be managing your hard-earned money. It is the reason we encourage all prospective clients to give us a call and get to know how we work. We want you to evaluate whether you feel confident in establishing a relationship with Pillar Wealth Management.
A practice like Chase wealth management Raleigh can have strengths and weaknesses. It is a big firm with a presence across multiple locations. However, as pointed out above, wealth management is not a mass-scale standardized approach kind of service. It requires understanding the uniqueness of each client. There have been instances where big-name firms have bucketed clients into categories like high-risk appetite, low-risk appetite, and so on.
The client would also want to deal with one wealth manager who knows everything about his/her financial situation. We have talked at length about this approach in our book called The Ultimate Guide to Choosing the Best Financial Advisor: For Investors With $5 Million to $500 Million in Liquid Assets. Wealth management requires a manager to think about the broader implications of every financial decision on the financial situation of the client. So, while it may be great to frequently churn the portfolio in order to earn excess returns, capital gains taxes can just as easily eat into those excess returns.
Helpful tips to find the best wealth advisors
Now that you have a deeper insight into what wealth management is and how it works, you may be eager to find a reputed and experienced firm to work with. The process begins at your home where you can start searching for advisors in your immediate area. You can do that or search for wealth management firms across Raleigh.
Next, you can visit individual websites and check what kind of services within wealth management a prospective firm offers. If philanthropy or estate planning is important to you, then make sure that the wealth manager you are looking at has experience in those areas. You can also read reviews about the firm. Any articles or blogs, especially in the mainstream media, is another plus because it gives you an insight into the philosophy of the wealth manager.
Lastly, as we have pointed out at numerous places in this article, make sure you speak to the advisor one-on-one. It will give you a chance to get to know the person with whom you will be working. You need to feel trust and confidence in your wealth manager. Important financial decisions that impact you and your family will be made by that person.
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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