Wealth Management Rhode Island:
Who Needs It and Why?

The Complete Guide to What We Do

Wealth Management Rhode Island

Are you wondering if you need to hire a wealth manager for your liquid assets? Unlike seeking advice from a financial planner or a tax consultant to get your affairs in order, wealth management isn’t everyone’s cup of tea. It undertakes a rigorous approach to wealth accumulation and preservation that primarily benefits individuals with a high net worth. It’s not just limited to investors, as well. It alsohelps people such as high net worth corporate executives and professionals, families with an inheritance or sudden wealth, and high net worth business owners. If you fall in this category and currently have a net worth over $10 million, then we strongly recommend reading our exclusive guide to choosing a financial advisor for wealth management, Rhode Island. It will help you establish criteria for selecting the right wealth manager who can deliver real value. You can also get in touch with us and speak directly to one of your wealth management experts.

Pillar Wealth Management has been providing wealth advisory services to high net worth and ultra-high net worth people with $5 million to $500 million in liquid assets. We offer comprehensive wealth management planning that can secure your financial future, help you lead the lifestyle you desire, and create a financial legacy that ensures your family is well taken care of.

Read on as we discuss the benefits of Rhode Island wealth management for business owners, investors, corporate executives, professionals, and families that have recently inheritedassets worth $5 million and above.

Wealth Management for High Net Worth Business Owners

Wealth management is a critical component for business owners managing a high net worth business. Your business represents your legacy. It’s a manifestation of what you have contributed to the world, and it needs to be protected. If you are a high net worth business owner, then wealth management can play a vital role in ensuring that. Some of the reasons why you need Rhode Island wealth management for business owners are:

It Helps with Estate Planning

Many high net worth business owners make the mistake of limiting estate planning to their personal assets. It’s important to remember here that your business is a valuable asset too, and the interest you hold in that business can account for a significant portion of your net worth. Including these assets in your estate plans can shape your family’s future the way you want. It can also prevent your business assets from falling into the wrong hands. Using a wealth manager here lets you stay in control of what happens to your company and ensures your peace of mind.

It Enables Wealth Transfer

Wealth transfer plans are often confused with estate plans, but the two are not the same. Wealth transfer involves decision-making and drawing up an action plan that helps you prepare your heirs for managing their inheritance responsibly. It also helps maintain harmony between family members and empowers them to make prudent decisions regarding how they use these assets.

If you are planning to have a family member take over your business in your stead or need to transfer your business assets to your children or grandchildren, then you need a wealth manager on your team. This can ensure your family members understand your financial values and goals. You can also stay in control by creating a trust that allows your money to be managed as per your wishes. Moreover, it sets specific time frames for wealth transfer. If you build an irrevocable trust, then this protects your assets from creditors and can help in the reduction of estate taxes.

Last but not least, a wealth transfer plan canhelp your heirs understand the value of your assets and guide them on the fundamentals of investing. If you are interested in learning more about investment management, click here to read our exclusive guide on streamlining the performance of your investment portfolio.

It Helps You Sell Your Business

Selling your business is a significant decision and must be treated accordingly. For starters, you’ll need a robust buy and sell agreement that protects your interests. You’ll also need to make sure that your business is being by purchased by someone who understands your business values and can carry your legacy forward.

Other concerns include the payment method. For instance, are you getting paid in stocks or cash?  Compared to stocks, cash is much easier to manage. It is stable and can be diversified more easily into other assets. Stocks, on the other hand, can be very volatile. Depending on their sensitivity to the market, you could stand to lose a significant amount of money if you get paid entirely in stocks.

To learn more about how you can navigate this situation, click here to arrange a free consultation session with one of our wealth managers.

Wealth Management, Rhode Island for Families That Have Inherited Sudden Wealth

Financial Advisor Rhode Island

As mentioned earlier, wealth management is essential for families with an inheritance or sudden wealth. It can be especially tricky for recipients of sudden wealth. More money can often translate into more problems, and if you are not careful, you can quickly lose track of your assets here. You may even end up suffering from sudden wealth syndrome. This is a type of condition that affects people who suddenly amass a significant amount of wealth. It is characterized by panic attacks, feeling isolated from your previous social circle, and overwhelming fear that you will lose the money.

Hiring a financial advisor for wealth management, Rhode Island, can help prevent such fears from materializing. How do you choose the right person for the job, though? If you have inherited sudden wealth and are struggling with this particular aspect, then we recommend reading our guide on how to select a financial advisor for high net worth investors.

The right wealth manager can help you:

Create a Comprehensive Financial Plan

What do you do after you have inherited all this money or experienced a sudden windfall of cash? You work with a wealth manager to create a plan for your financial future. This can involve investing your money by purchasing stocks of bluechip companies. You can also invest in bonds, certificate of deposits, and other investment vehicles.

At Pillar Wealth Management, we can help you create an investment plan that is tailored to your life goals. This is an essential aspect of wealth management as it ensures that you don’t just use your assets smartly. Instead, you use them in a way that allows you to create the life you desire for you and your family.

Manage Taxes

Being on the receiving end of copious amounts of money almost always involves taxes. It can create a massive tax liability for you, leading to more stress. For instance, suppose you win a lawsuit of $10 million. In such cases, you will have to pay tax on at least some of the amount.

However, if you are working with a wealth manager that specializes in tax minimization, then you can avoid losing a significant portion of your wealth to tax payments. There are also plenty of legal implications involved, and you need to have a qualified team in place to help you manage both aspects.

There are many other considerations here. If you are a high net worth individual that has inherited sudden wealth and is trying to understand how to manage it, then we suggest ordering a free hardcover copy of our book, The Art of Protecting Ultra-High Net Worth Portfolios and Estates – Strategies For Families Worth $25 Million To $500 Million.

Reading this book will help you develop an understanding of investment management and the different types of strategies used by high net worth families in preserving their wealth.

Wealth Management for High Net Worth Corporate Executives, Professionals and Investors

When it comes to wealth management, Rhode Island,high net worth corporate executives and professionals must deal with a series of challenges. To begin with, most of their personal wealth is linked to their company’s multilayered compensation packages. Their investment portfolio may also rely heavily on employee stock options that are subject to certain rules and regulations. Hiring a wealth advisor can prove to be useful here. They can help you:

Defer Your Income to Avoid High Taxes

If you fall into high-income tax bracket, then a wealth manager can help you figure out a plan for deferring a portion of your salary or year-end bonuses to your retirement plan. This will even out your annual income so that you qualify for a lower tax bracket. The deferred income won’t be subject to taxes unless you withdraw it early from your retirement plan. By contributing the extra income to your retirement plan, you also get to boost your savings and can get more use out of the money once you retire.

Harvest Your Losses

If some of your investments haven’t performed too well, then a wealth manager can help you harvest these losses by selling them. Doing so can offset the profits earned on other investments and reduce your total taxable income. This technique can help you control your tax payments and boost your savings further.

Remember, it’s natural to get overwhelmed by yearly gains and losses. However, you should not lose sight of your ultimate goal, which is wealth preservation. Having a qualified wealth manager on your side can help you maintain focus. Instead of getting stressed out by yearly variations in performance, you can use a variety of strategies that help you stay on track and streamline your investment portfolio to realize your financial goals.

Prepare for Market Volatility

Market volatility is a common concern among corporate executives, professionals, and investors with a vested interest in equities. While you can earn high returns, you also expose yourself to increased risk. If you are an investor with over $5 million in liquid assets, then Pillar Wealth Management can help you navigate these risks.

We can help create a defensive equity strategy as well as a core holdings strategy that allows you to earn stable returns on high-quality and low-risk investments. In addition,our team makes use of portfolio stress tests that help us determine how your investments will perform if the market dips. These stress tests are based on extensive historical data that goes back to 1925 and accounts for major events that influenced market performance in the past. Carrying out these tests allows us to optimize your portfolio and protect your investments to maintain their value amid volatile conditions.

To learn about how these portfolio stress tests work, click here to speak to one of our wealth managers.

Work With Restricted Stock Options

As mentioned earlier, most employee stock options available to corporate executives and professionals tend to be guided by certain restrictions. Most notably, you might not be able to sell these stock options. In such cases, your investment portfolio will be faced with considerable risk. A wealth manager can help you navigate these tricky situations and help you balance your investment portfolio to reduce risk.

Choose Between Active and Passive Management

As an investor, you will often be led to believe that active management is the best way to accumulate more wealth. However, this isn’t necessarily true. Active management will help you earn a high return. However, it also comes with additional costs. Using a combination of active and passive management techniques will serve you better. Passive management delivers stable returns and also helps you control your tax payments. Besides, passive managers charge less. To learn more about how you can benefit from this approach, click here to read our guide on the 5 essential shifts that all investors should make to grow their net worth.

Pillar Wealth Management Offers Tailored Solutions for High Net Worth Individuals

Whether you are a corporate executive, a business owner, or families with an inheritance or sudden wealth, Pillar Wealth Management can help you make the most of your liquid assets. We serve clients having a net worth between $5 million to $500 million and can help you leverage new investment opportunities, control costs, and reach your financial goals in a hassle-free manner.

We pride ourselves on creating custom plans for our clients that reflect their priorities and aid in wealth management, Rhode Island. If you are interested in learning more about our services, click here to arrange a free consultation with us.

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