How do you save up and secure your financial future? For many people, it’s putting away money in a savings account. Unfortunately, with meagre interest rates, that means a relatively stagnant accumulation of cash with little growth potential.

In contrast, a comprehensive suite of financial services and wealth management goes beyond maintaining a dormant savings account — these guarantee growth and increased earning potential.

Private wealth advisors work with you to maximize the value of your assets and long-term savings. Wealth management incorporates financial planning and investment management to help investors maximize earning potential across a range of assets to ensure long-term growth. Designed for high-net-worth individuals, private wealth management has since expanded to a wider clientele and encourages smart, long-term investing and financial stability.

Are you still putting cash away in a savings account? Our team at startMYplan can help you learn what private wealth advisors can do to increase the growth potential of your life’s savings. Discuss your goals with private wealth advisors to secure the future you’ve been working for.

What do private wealth advisors do?

Private wealth managers practice a combination of financial planning, forecasting, and investment management. They cater primarily to high-net-worth individuals who want to sustain long-term financial security and growth.

This includes setting up trusts for family members, foundations, and other planned donations to reduce the burden of tax on heirs and secure their financial future, rather than tangling up their inheritance in transfer expenses.

Wealth managers work closely with estate lawyers and accountants to develop a long-term wealth management and investment strategy according to financial regulations and your current and projected financial outlooks. They aim to maximize your savings and ensure their longevity and sustainability well into future generations.

In doing so, they employ a range of financial and investment forecasting and advisory services to manage your financial outlook. These include financial planning, investment and risk management, tax services, retirement, charity, estate planning, and social security benefits planning.

Private Wealth Management vs. Financial Planning

Both financial services are often used interchangeably — they’re each concerned with assessing your current financial situation, discussing your goals, and achieving long-term financial security and growth. The key difference, however, is their scale and exact focus. Where financial planning is recommended for all individuals with varying investment amounts, private wealth management specifically caters to high-net-worth individuals and their families.

More than analyzing an investor’s current financial situation and designing an investment plan that encompasses retirement, education, and other savings, private wealth management is concerned with complex financial oversight and active management.

Private wealth advisors handle high-value tax and estate planning, as well as trust creation and other planned donations to reduce losses and, in the process, retain wealth. These investment activities require a delicate balance of financial insight and adherence to regulatory measures to address extensive and high-value financial needs.

Private Wealth Advisors and Investment Management

Investment plans and financial advice are core financial services — and, for financial planners, the core of their involvement in growth and wealth management.

Because private wealth advisors are dedicated to catering to the needs of high-net-worth investors, they also implement and manage a client’s portfolio, and optimize this for maximum earnings. The result is a comprehensive investment strategy present at all stages of wealth management: financial planning and forecasting, extensive investment, and asset management with respect to high-value tax, estate, and philanthropic requirements.

Do private wealth advisors only work with wealthy clients?

The highly-involved nature of wealth management compared to regular financial planning and advisory means that, yes, this financial service caters specifically to wealthy clients. However, net worth alone should not prevent everyone else from achieving financial security and growth through sound financial planning and wealth management.

Private wealth advisors are specifically trained in the intricacies of the investment requirements and endowments of affluent individuals and families. Their high-net-worth status tends to come with complex financial requirements, such as balancing regulatory measures with close portfolio management, investment growth, and planned donations. Certified private wealth advisors even train extensively to manage the portfolios of individuals valued at least $5 million.

These days, however, there is a growing shift to making wealth management more widely available. In recognition of the need for comprehensive financial planning and investment management, more private wealth advisors are attracting financially-savvy clients who aim to secure their financial situation and improve their future. Private wealth advisors are increasingly customizing wealth management services to suit clients of varying net worths.

How much does private wealth management cost?

It’s worth noting that wealth management is, itself, an investment. Private wealth advisors typically charge a fee or percentage of the assets they manage and their annual growth. More and higher-valued assets, as well as increased growth, translate to higher wealth management fees. Other private wealth advisors may also charge a fixed fee as their base, and charge asset-based percentages depending on their involvement in the growth of the portfolio.

Similarly, this general asset-based fee is often just the basic cost of portfolio management. Private wealth advisors may also require additional fees to cover other investment expenses to reflect increased involvement and sustained growth. That said, it’s important to clarify the asset-based fees, percentage rates, and other expenses that a private wealth advisor charges to fulfill sustained investment growth.

Tips for Finding a Private Wealth Advisor

Banks, dedicated wealth management firms, and boutique financial firms offer wealth management services and set you up with a personal wealth advisor; the key is knowing who you are dealing with and their qualifications. These factors help determine their success in delivering steady portfolio growth to clients.

Private wealth advisors are certified financial professionals, with designations ranging from certified private wealth advisor (CPWA), to certified financial planner (CFP), and chartered financial analyst (CFA). It’s worth noting that while other financial professionals learn the core principles of asset management and estate planning, it’s certified private wealth advisors who are best trained in comprehensive portfolio management.

In the end, the most productive wealth management service stems from excellent client service. Aside from professional designations, take time to learn from the experiences of family and friends: word of mouth and referrals tend to provide a comprehensive picture of an adviser’s approach to wealth management, and the results they can deliver.

To learn more about what private wealth advisors do, call startMYplan at 1-888-831-6716, or contact us here.