6 things to know about wealth management

Posted on: 5th May 2021 in Financial Planning

Stress and anxiety are two feelings that sometimes overwhelm us when we think about our future. When our thoughts involve money and how we could make the most of it, our life becomes even more stressful. There are, however, ways to ease the stress. Wealth management is a solution that would help you secure a promising financial future for yourself and your loved ones. In this article, we will share some interesting and valuable insights that would assist you in choosing the wealth manager that could help you achieve your financial goals.

What is wealth management?

If you belong to the group of people who have been able to save some money in the past few years, wealth management could be what you look for. Not everyone has the necessary level of financial knowledge to build a plan for their future. Many factors could contribute to the plan’s success or failure. The financial world is a rapidly changing environment, and the risks are increased. The economists’ majority defines wealth management as a practice that engulfs portfolio management, financial planning and other services for individuals. A wealth manager aims to protect the client’s wealth, develop it in the best way possible and, in some cases, ensure that it is passed to the next generation with the least tax burden.

What can a wealth manager do for you?

A wealth manager comes to give answers to every question you might have around investing, financial planning, retirement planning etc. Hiring a wealth manager saves you valuable time which you would spend to gain the knowledge that would help you achieve your financial goals. A wealth manager could also reduce the stress that most individuals have when making important decisions regarding the best use of their funds. Wealth managers have the necessary level of knowledge to understand your financial goals, evaluate your financial capabilities and design plans that would help you grow your wealth. A wealth manager can develop and select a suite of investment solutions to meet your expectations as well as assess the risk and adjust strategies.

How do you choose the right wealth manager?

It goes without question that choosing the right wealth manager is not an easy task. Wealth helps you make your life easier as you have the means to cover your needs as well as those of your family. If you would like to grow your wealth and simultaneously improve your life’s quality, you need a solid wealth management plan.

Job titles and qualifications might not match

You have done your research, and you have found the person you believe is right for the job. You might get his/her business card, and on it is written “wealth manager”, “financial planner,” or some similar title. But is it true? If you choose based only on that, you put yourself and your finances in danger. Making the correct choice requires making the right questions. So, you would have to ask questions revolving around financial education, credentials and level of experience. Knowing details such as these would help you determine if the candidate wealth manager could help you by providing financial advice and suggesting solutions.

Understand their compensation calculation

Regulatory authorities have noted in the past that it is essential for clients to understand how the compensation of their wealth managers is calculated. Therefore, it is important that the wealth manager who will be in charge of your financial planning can explain how he will be paid for provided services. Transparency is of utmost importance as you have to know that he/she would suggest solutions with your best interest in mind and not solutions that would increase his compensation. If you feel that the wealth manager in question tries to hide something, it would be better not to continue negotiations.

Independent advisers or a large broker firm?

Large firms have the brand and fame that easily attract clients. However, is trusting your wealth’s management to a large financial services firm, such as Goldman Sachs or Blackrock for example, always the right option? The answer is that you shouldn’t neglect the fact that an independent financial advisor might have access to a more extensive variety of products provided by many firms, thus increasing your options. Sometimes hiring an independent adviser is a better choice as they don’t have to follow instructions from large broker firms in terms of which products to promote and sell more. This is one of the reasons that independent advisers have loyal client bases.

Holborn and wealth management

If you are looking for a dedicated, experienced and fully qualified wealth manager, Holborn’s twenty years of history in the competitive financial services sector prove our customers’ satisfaction. More than 200 independent financial advisors are ready to help you build a financial plan that would help improve your finances without uncertainty or stress. Get in touch with us today.