Wealth Management Utah:
The Complete Guide to What We Do
“Do I need a wealth manager or a financial advisor?”When it comes to building a team for financial planning, many high net worth investors ask themselves this question. The two terms are often used interchangeably, but they are not necessarily the same. If you have $5 million to $500 million in liquid assets, then it’s important you understand the difference between wealth managers and financial advisors. Doing so can help you make the right decision regarding wealth management Utah. For investors with $10 million and more in investable assets, we also recommend finding a wealth manager based on criteria discussed in our exclusive guide. This can help you manage your assets properly and set you up for financial success.
Pillar Wealth Management specializes in fiduciary wealth advisory services designed to facilitate high net worth investors with $5 million to $500 million in investable assets. We offer holistic solutions that can help with financial planning, investing, tax minimization, retirement income planning, and so much more. To learn about our advisory services, click here to start a conversation with Pillar Wealth Management.
In this blog, we will be discussing the differences between a wealth manager and a financial advisor and 3 situations when you need a financial advisor most.
Table of Contents
What Is A Financial Advisor?
The term “financial advisor” covers a broad range of roles and responsibilities.In simple terms, a financial advisor is an individual that gives you advice on matters of money. Some professionals that may refer to themselves as financial advisors include:
- Financial planners
- Investment advisors
- Wealth managers
Financial advisors do not need formal certification. However, they will need to receive training on carrying out financial activities such as stock trading, tax preparation, insurance planning, retirement income planning, and managing the wealth of high net worth individuals.
Moreover, a financial advisor can be an expert at multiple things, or they can specialize in one particular domain. For instance, a tax consultant will know the federal tax code in an out and can help you with minimizing your taxes. However, they might not be very familiar with managing your retirement income.
Note: If you are working with a financial advisor, select someone who can be a true fiduciary. This means that they can offer financial advisory services while keeping your best interests in mind.
What Is a Wealth Manager?
Wealth managers are a type of financial advisor. They can be employed by financial institutions, such as banks, brokerage firms, and wealth management firms to assist high net worth clients.
Let us review the key differences between a financial advisor and a wealth manager:
High Net Worth Clientele
This is one of the biggest differences between a wealth manager and a financial advisor. Anyone can seek financial planning services from a financial advisor. However, only individuals with a net worth of $1 million and above work with wealth managers to use their assets optimally.
Most wealth management firms also make a habit of accepting clients with a minimum net worth of $3 million and above.
Holistic Wealth Management Services
Unlike financial advisors that may specialize in a certain domain, wealth managers offer all-rounded solutions for wealth management Utah. These can include:
- Financial planning
- Investment management
- Legal planning
- Estate planning
- Tax services
- Retirement planning
Thus, instead of getting an individual specializing in one area, wealth management lets you work with professionals who can offer solutions in multiple domains. Choosing to work with one entity that offers comprehensive wealth advisory services also simplifies the process. You only need a single point of contact for all your financial planning and investment management needs.
Another major difference between a financial advisor and a wealth manager is that a financial advisor usually contacts their client only a few times during the year. Wealth managers provide a more hands-on approach. Instead of a touch and go, wealth managers offer ongoing support. They provide year-round guidance and financial management to help you improve your capital gains, lower your costs and benefit from ongoing market trends.
Working with Other Professionals
Wealth managers can also coordinate with other professionals that are a part of their client’s team. For instance, if you have hired lawyers, business managers, tax consultants, and accountants, then a wealth manager will be able to work with thesepeople to provide you with maximum benefits.
At Pillar Wealth Management, we have a streamlined process in place that allows us to coordinate with accountants, insurance brokers, attorneys, and advisors for mergers and acquisitions to create a comprehensive wealth management strategy for our clients. To learn about the benefits of this, talk to one of our wealth managers.
Which One Do You Need?
If you are wondering, “Do I need a wealth manager or a financial advisor?” the final answer depends on your financial needs and your net worth.
For instance, if you have a net worth below $1 million and only need help with investment management, then you can make do with a financial advisor that specializes in this specific area. However, if you are looking for more holistic solutions and need help with managing liquid assets valued between $5 million and $500 million, then you should approach a wealth manager for assistance.
Top 3 Situations When You Need a Financial Advisor for Wealth Management Utah
Choosing to work with a financial advisor is a significant decision that every high net worth individual must make at some point or the other. As wealth management experts, we recommend all high net worth individuals to seek help from a financial advisor in one or more of the following situations:
You Are About to Take Major Decision That Affects Your Net Worth
Suppose you are a high net worth business owner who is considering selling their business. In such cases, you need all the help you can get to make sure you are doing the right thing. Having a financial advisor by your side here can help you:
- Sell your business to the highest possible bidder
- Ensure a business transition and succession plan is in place for a smooth wealth transfer
- Make sure the selling price reflects the net worth of the business
- Ensure your money does not get tied up entirely in stocks to lower your risk (most business owners buying out a business tend to make payment cash and stock)
- Use the money from the sale for retirement income planning and investment management
To learn about other critical decisions that a wealth manager can help with, click here to read our guide on the 5 essential shifts that all high net worth investors must make to achieve their financial goals.
Your Assets Are Being Utilized Inefficiently
Amassing a significant amount of wealth and making it last are two entirely different things. If your net worth is more than $5 million, but you feel you are stuck, then it is essential you seek help from a financial advisor specializing in wealth management.
Instead of letting your money sit in an account and slowly lose its value, you need to do all you can to make sure it is utilized in the most efficient way possible. A financial advisor can make that happen for you.
You can discuss your investment objectives with them, and they can use this information to create an investment strategy that ensures prudent asset allocation and diversification. This can boost your returns while controlling your risks, and you can ride high on market trends, make the most of new investment opportunities, and increase your net worth.
You are Losing Too Much Money in Taxes
Another one of the 3 situations when you need a financial advisor most is when you are losing too much money in tax payments. If you’re not careful, this can impact your financial security while also limiting your ability to benefit from high-performing investable assets.
High tax payments can result from anything. For example, you might have inherited liquid assets, such as cash, from a family member, or you may have been pursuing an active management strategy that generates short-term capital gains.
Whatever the case, a financial advisor with expertise in tax planning can help you avoid these taxable events by creating a tax minimization strategy that reduces your tax payments as much as possible. Saving money on taxes can also help you grow your net worth. Moreover, you can direct the money you saved toward lucrative investment opportunities and earn high returns.
If you are interested in finding out about tax minimization strategies, click here to book a consultation with Pillar Wealth Management.
What Else Can a Wealth Manager Help With?
There are many other scenarios where you will need help from a financial advisor with expertise in wealth management Utah. For the most part, smart money management requires years of experience. As a high net worth investor, you don’t have to rely on your intellect alone to leverage financial markets and tax laws. Asking for help in such matters will only serve to benefit you.
Here are a few other situations where hiring a wealth manager can be useful:
If you need assistance with forming estate plans and transferring your personal assets to your family, then you should consider hiring a wealth manager. These activities can create taxable events for your family, reducing the value of the assets they have inherited.
Transfer of Business Assets to a Family Member
Selling your business to someone within the family is always tricky. You want the sale to generate the income you desire for your retirement fund. However, you don’t want the business to accumulate too much debt, as well. Awealth manager can help you out here by creating a strategy that allows you to achieve both objectives.
They can also help you with tax minimization for the gains generated from the sale.
The right insurance policy is the first step toward securing your family’s future. Wealth managers can help you choose plans for life insurance, disability insurance, and long-term care insurance. This can provide your estate plan with an appropriate amount of coverage and help your family pursue their goals.
Life insurance can also provide your family with the money for pending mortgage payments and repayments on other loans. Your children can get a college education, and your spouse can receive funds to enjoy a comfortable retirement.
To learn more about other situations and scenarios where a financial advisor can help ultra-high net worth investors, 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 unlock the secrets to efficient wealth management and financial planning so that large investment firms and banks cannot take advantage of you by offering cookie-cutter solutions that add little value to your investment portfolio.
We hope you got an answer to your question, “Do I need a wealth manager or a financial advisor?”
If you have a high or an ultra-high net worth, we highly recommend you get professional help with wealth management Utah. Pillar Wealth Management can prove to be a valuable asset here. We have over 60 years of experience working with high net worth and ultra-high net worth investors and business owners. We can help you streamline your investments, plan for your retirement income, and make the most of your liquid assets to achieve your goals. Click here to talk to one of our wealth managers today in a free consultation session!
- UBS Wealth Management – UBS is the largest Swiss banking institution in the world. UBS is very well known…
- Wealth Management Texas – When it comes to planning for retirement, high net worth, and ultra-high net worth…
- Wealth Management Maryland – Keeping track of your investments can be challenging for anyone. However…
- Wealth Management Florida – Being a high net worth business owner, taking out the time to manage your assets and…