The Complete Guide to What We Do
US Bank refers to US Bancorp, a banking institution based in Minneapolis, Minnesota. US Bancorp is the parent company of US Bank National Association. It is also the fifth-largest banking institution in the US. Besides providing banking services, the institution also offers financial advisory services to high net worth and ultra-high net worth individuals as US Bank Wealth Management. If you are someone with $10 million or more in investible liquid assets then feel free to download this specially compiled guide on choosing the best financial advisor.
US Bank Wealth Management isn’t as large as some of the Wall Street players. However, it still has a substantial amount of assets under management at around $8 billion. The firm has a team of more than 800 financial advisors spread across the US. The size of a wealth management firm can have a bearing on the type of services and the style of working that it offers. The large size gives the firm scale and the ability to hire talent across various disciplines of personal financial management. However, a big size can sometimes also mean less personalization. Niche boutique firms specialize in customized and personalized wealth management services. One such example is Pillar Wealth Management, a firm catering to clients with $5 million to $500 million in liquid investible assets. The key for any firm is to provide holistic advice that is connected to client goals.
To help you better understand wealth management, we have written the following guide. It covers the important topic of financial planning for retirement. It also discusses what saving for retirement means. Next, we discuss things to look for in services that revolve around help reaching your retirement goals. And finally, we touch upon how to create your retirement income strategy.
Table of Contents
Financial planning for retirement
Retirement is one of the most significant events in any person’s life. It requires careful planning and years of preparation. Once you retire, your salary income stops. However, your expenses don’t and your financial goals do not cease to exist. Therefore, financial planning for retirement is a process to establish a system that can continue giving you income. This income can be passive income, income from investments, etc. However, the key point is that there has to be enough income to secure your, as well as your family’s, lifestyle. Besides US Bank Wealth Management and many other firms, Pillar Wealth Management has also been doing this sort of financial planning for more than 3 decades for individuals with $5 million to $500 million in liquid assets.
As a high net worth or ultra-high net worth individual, you may be thinking not just about your retirement, but also about other important topics like succession planning, estate planning, or philanthropy. All of these need thorough financial planning as well. A reputed wealth manager will usually cover all of these areas. By the way, we haven’t even mentioned one of the most important parts of retirement planning – taxation. How you structure your investments and your income will have a significant impact on how much taxes you will end up paying. We encourage you to check out this guide on choosing the best financial advisors for individuals and families with $5 million to $500 million in investible liquid assets.
A top wealth manager has to understand your life goals, your financial situation, and then accordingly chart out a strategy that makes a connection between financial decisions and your goals. Feel free to reach out to Pillar Wealth Management to explore how the firm can help you plan your retirement.
Saving for retirement
Saving for retirement is one of the most commonly used phrases in the financial advisory industry. But what does it really mean? And what role can US Bank Wealth Management or any other wealth management firm play to enhance that activity? These are questions that you may have asked yourself.
Saving is not what’s left after all your expenses are paid. Your expenses are what’s left after you have saved. Do you notice the difference between the two sentences? One gives priority to expenses while the other treats saving as a strategic action. It indicates that you have a goal, and in order to reach that goal, you will keep aside some money no matter what happens to your expenses. For high net worth individuals, saving is a long-term strategic action.
A top wealth management firm will not just structure your cash flows in a way that makes saving fit into your financial plan, but it also makes sure that those savings do end up growing by a good-enough rate. After all, simply saving money isn’t going to get you to your goals. The savings have to be invested prudently and carefully so that they can grow and help you reach your life goals. Investment management is, therefore, a crucial aspect of wealth management. You can read all about the subject in this guide on improving portfolio performance for investors with $5 million to $500 million in investible liquid assets.
While saving is a good habit, one should also guard against excessive saving. After all, if you work hard to earn all the wealth that you have accumulated, you want to live your life and spend some of it as well. Speak to Hutch Ashoo to discuss how you can find the right balance between saving and spending.
What to ask US Bank Wealth Management about investment management
There are some questions that you should ask every wealth management firm (including US Bank Wealth Management) that you shortlist. The first is the difference between investment costs and fees. Some wealth managers may say that the two are the same. Some of the top wealth advisors will recognize that fees are what the advisor gets paid for the services offered while investment costs are something borne by the client.
If you are wondering what investment costs are, then there are quite a few of them. Items like capital gains taxes, fund fees/expense ratios, brokerage fees, and other transaction costs are all part of investment costs. These are costs that one has to deduct from gross portfolio returns to calculate the net portfolio returns. Ultimately, the net return is what the client sees in his/her bank account. So, a good wealth manager will have a strategy that minimizes such investment costs. Alternatively, a good wealth manager will recognize what investments to choose so that the net returns are high enough for the client to meet his/her goals. Read about the balance between investment costs and maximizing portfolio returns in this book called The Ultimate Guide to Choosing the Best Financial Advisor: For Investors With $5 Million to $500 Million in Liquid Assets.
The second thing to ask a wealth management firm is a case study that it can share about how it recommended investments to a client. If you are speaking to a large firm, then it is important to evaluate whether the firm chose to recommend funds from its company’s asset management division or whether it recommended funds from a competitor because it was the best option for the client. Feel free to start a conversation with Pillar Wealth Management to discuss this in detail.
Help reaching your retirement goals
Do you need some help reaching your retirement goals? Are you very busy with work and feel the need to have a professional manage important wealth decisions for you? Let’s face it, not everyone has the time and luxury to learn about finance, law, and taxation. Not everyone is able to then practice what they learned and put millions of dollars of their hard-earned wealth at stake.
Besides, wealth management is not a one-time activity of reading a few books and then creating a wealth plan. That plan needs to be constantly re-looked at. The world around us changes, the markets change, our lives change, and our financial goals also change. Therefore, if we are to stay on track to achieve our retirement goals, our wealth plan has to constantly factor in all of these changes.US Bank Wealth Management and every top wealth management firm will acknowledge this.
One of the benefits of working with a wealth management firm is that you can hold one person (wealth manager) responsible for all your wealth decisions. That way, you can focus on doing the things you like while the wealth manager can worry about taxes, estate planning, retirement, portfolio management, etc. Before you hire a wealth manager, we believe that you should do some self-introspection. You should think about why it makes sense for you to work with a wealth manager and what areas of your finances can he/she help you with. We have written this short guide on critical shifts needed to maximize portfolio performance. It provides a helpful framework for some self-introspection.
If you can find a top wealth manager to work with, then that person can be like a friend or a family doctor. Schedule a free consultation with Pillar Wealth Management to explore further.
Create your retirement income strategy
As mentioned above, retirement means that your salary income will stop. However, your expenses won’t and your life goals won’t disappear. Therefore, you will have tocreate your retirement income strategy. You will need a setup that can give you regular cash flow to sustain your lifestyle. A wealth manager will be able to help you craft and implement such a strategy. The wealth manager will also have to estimate how much money you require for your life goals and when you require that money. The “when” part is important because it determines the duration for which money for a particular goal can be invested.
Once the duration of investment and the desired amount is known, an appropriate investment with an appropriate rate of return will have to be identified. These data points will automatically discount multiple options. Among the few options left, a top wealth manager will think about the concept of net returns that we mentioned earlier. A holistic approach will be needed that takes into account taxes and investment costs.
One of the benefits of working with a wealth manager is such holistic thinking. When one person is handling all aspects of your finances, he/she will know the impact of every decision on multiple areas of your finances. This is unlike working with multiple professionals for multiple things. Imagine having a tax professional who does just taxes but does not know whether the portfolio manager is going to trade stocks frequently or invest in a passive fund. High stock turnover leads to short-term capital gains with higher tax rates. Getting multiple professionals on the same page and synchronizing everyone’s thought process can be a cumbersome task. We encourage you to speak with Hutch Ashoo or Chris Snyder to explore strategies for retirement income.
Pillar Wealth Management – A possible option?
Pillar Wealth Management is a boutique wealth management firm that has over 60 years of combined experience. It specializes in offering personalized white-glove wealth management services to its clients. The firm isn’t afraid to turn away new business in order to maintain an optimal size. Pillar Wealth Management is taking only 17 new clients this year. This helps the firm provide its clients the time and attention that they deserve. Wealth management works on trust and requires a personal touch as each client’s financial situation is unique.
Pillar Wealth Management also places special emphasis on investment costs. It works towards lowering volatility, reducing expenses, and optimizing taxes in its goal to save the client $100,000 for every $10 million in assets that a client asks the firm to manage. Pillar Wealth Management believes in the concept of financial serenity – helping clients achieve all their goals in a stress-free manner.
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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