Do you need a Wealth Manager?
Most people find themselves spending more time on frivolous, but enjoyable things like a birthday party, than they spend managing their finances. At some point, maybe when you're looking to buy a house, or maybe when you're working on your retirement plan, you realize that you need a good financial plan. That's when you look to a wealth management advisor.
Wealth Management is a process that is very complex, requiring expert knowledge and skill. The advice and assistance of an experienced and qualified financial planner ensure that you will have the best options and chances of achieving short and long-term goals in your life. A wealth manager with help to navigate you through an assortment of financial ideas and financial ventures as well as asset options available, providing you with the greatest solutions for any circumstances.
3 Resources to Help You Find a Good Wealth Management Advisor
NAPFA – National Association of Personal Finance Advisors is the leading professional association of Fee-Only financial advisors—extremely skilled and professionally trained, who are dedicated to working in the best interests of persons they serve.
BANKS – Wells Fargo is but just one of the many banks providing wealth management services. They work with you to develop a holistic plan to assist you in meeting both short- and long-term goals.
Private Wealth Management Firms – There are many private firms who are reputable and professionally skilled enough to assist you with your wealth management needs, such as Morgan Stanley, for example.
Wealth Management Firms Assist You In:
- Deciding on specific retirement possibilities and placing you on course for a retirement of your dreams.
- Managing possible risks, avoiding pricey mistakes, and expanding your complete financial investment results.
- Crafting long-term wealth concepts and attaining your individual finance planning objectives and goals.
- Outlining the type, as well as the amount, of insurance needed to protect your family and assets.
- Improving efficiency with assets you'll want to pass on to family and friends in the event of death.
Questions to Ask Your Wealth Management Advisor:
- How much will your services cost?
The amount you pay your wealth management advisor should be determined by your ability to analyze many cost factors. Studies show that the total cost of wealth management firm should not surpass 1% of your total assets annual.
- Did you design the asset allocation yourself?
Many wealth management firms develop model asset distributions intended for use by their managers. Typically a model may place 60% of assets into stocks and then 40% of assets into bonds. At experienced firms, the models are reasonably designed and are typically conservative. However, clients must be cautious of advisers who provide uncommon allocations.
- How fast can I get access to my money if a crisis comes up?
Typically, wealth management firms hold money in mutual funds, permitting prompt withdrawals. Nonetheless, there are clients who may hold hedge funds or additional investments that only permit periodic withdrawals. Some investors, during the financial crisis, were forced to wait a year or more to obtain their funds.
- What will you do if the bond market collapses or stocks fall 40% next year?
In previous years, many wealth managers maintained the course in all markets. However, since the financial crisis, managers and advisers are rethinking their methods. In preparation towards future crisis, learn how your manager responded to the 2008 downturn.
By knowing what to look for and where to look, you are better able to find a wealth management advisor who is well qualified to meet your needs.
