Wealth Management involves working side by side with you to develop your personal financial life plan, manage all of your accumulated wealth, and keep you informed of your financial situation by meeting with you on a regular basis. Wealth management includes managing your advanced financial plan, your investment plan and coordinating your advisory team relationships.
As an affluent investor, you likely have one or more of the following concerns:
- Preserving wealth
- Minimizing taxes
- Effective estate and gift transfer
- Risk Management
- Charitable giving
Preserving wealth. You may have lost confidence in the markets and your advisors but you want help making smart decisions
Minimizing taxes. You may want to reduce income tax, as well as capital gains and estate tax exposure.
Effective estate and gift transfer. Transferring wealth to children and grandchildren in accordance with their wishes.
Risk Management. You want to keep your wealth safe from potential creditors, litigants, children’s spouses and potential ex-spouses, as well as from catastrophic loss.
Charitable giving. Helping to facilitate and increase the effectiveness of your charitable intent.
What is wealth management?
Many financial advisory firms claim to offer wealth management. In reality, most provide simple investment management and perhaps a few other services, such as college and/or estate planning. The challenge for those seeking real help to meet all of their financial planning needs is finding a firm that provides true wealth management.
We use John Bowen of CEG Worldwide’s definition. Wealth Management is the synergy of Advanced Financial Planning, Investment Consulting and Relationship Management.
Investment Consulting is the astute management of investments over time to pursue financial goals. It requires the wealth manager to develop a deep understanding of the client’s most important challenges, design an investment plan that takes your time horizon and risk tolerance into account, and describe an approach that will maximize the probability of reaching your goals. Nothing stays the same. We monitor your portfolio and financial goals over time, ready to make adjustments as needed.
Advanced Planning goes beyond investments to look at all the other important aspects of a client’s financial life. It consists of four parts: wealth enhancement, wealth transfer, risk management and charitable giving. According to some estimates, less than 10 percent of financial advisors help clients achieve these goals.
Relationship Management (RM) is the final element. We will coordinate the activities of your network of existing professional advisors, such as attorneys and accountants. The “tunnel vision” of certain professionals may offer conflicting advice. Your busy schedule offers little time to research answers to these conflicts. Our diverse knowledge in investment planning, tax planning and estate planning gives us the background to vet these conflicts. If needed, we will help you identify and interview professionals to add to your team of trusted professionals.