Financial security and awareness are pillars of long-term success and peace. Accumulating wealth and building numerous income streams is just one part of the equation. You need to leverage wealth management to keep more of your hard-earned money and secure your financial future.
If you’re thinking of partnering with a wealth management provider but aren’t exactly sure what services they provide, this guide is for you. Here are five types of services you should know:
Investment Management
For many ultra-high-wealth individuals, investment is the main source of income. Wealth managers will ensure the strategic allocation of assets, creating a diversified portfolio. This can involve:
- Bonds
- Stocks
- Private equity
- Venture capital
- Alternative investments like real estate and precious metals
Wealth managers like those at Creative Planning would closely analyze your future financial goals, risk tolerance, and investment horizon to create a tailored portfolio.
While you can seek the guidance of an investment advisor, wealth managers do things a little more proactively. They keep an eye on industry trends and rebalance your portfolio in response to changing market conditions.
Estate and Legacy Planning
Estate planning is another essential component of wealth management. Wealth managers work with legal experts to ensure the orderly transfer of your hard-earned assets. Their services are applicable during your lifetime and beyond.
A wealth manager generally takes care of the following estate planning instruments:
- Wills
- Trusts
- Power of Attorneys
They also take care of business succession to minimize estate taxes and legal disputes.
Tax Planning
Let’s be real — every individual wishes to keep more of their money. And with the help of wealth managers, you can do exactly that.
Wealth providers know the ins and outs of tax planning. They employ strategies to minimize current and future tax liabilities across numerous investment assets and estates. For instance, your wealth manager might suggest tax-loss harvesting, a strategy where you sell investments that are worth less than what you paid for them to realize a capital loss.
Overall, they help you maximize deductions and minimize your tax bill.
Insurance
No one plans on getting sick. But when life throws a curveball, an insurance policy acts as a safety net and protects your family. What types of insurance products are available? How do I choose the correct life insurance product? What is the difference between medical insurance and long-term care insurance?
A wealth manager will answer all your questions and concerns. They will evaluate your coverage needs and offer advice so your future is protected.
Philanthropic Planning
If you have charitable giving goals, working with a reputable wealth management firm is the best decision you can make.
Wealth managers will advise you on effective charitable giving strategies, such as setting up donor-advised funds or private charitable trusts. The aim? Maximizing community impact while achieving tax benefits.
