Wealth Management and 4 Signs You May Need It

For someone with more than enough income, managing their finances may seem easy but in order to maintain financial stability, many wealthy people hire wealth management professionals to help provide clarity and peace of mind by monitoring where they spend their time and resources so that none go wasted.

This can often mean that getting rich is the “easy” part while keeping hold of your hard-earned money is the biggest challenge. In the worst-case scenario, you could be at risk of losing it all – search “millionaires who went broke” on Google and you’ll come across hundreds of cases. Life is unpredictable, but wealth management is much more than just making sure you’re covered in all circumstances. Let’s take a look at wealth management in more detail, including why you may need a wealth manager to help you with your own finances.

What Is Wealth Management?

Wealth management is an umbrella term that covers a number of different financial services. These services typically help you to plan for a more successful future, whether you need financial advice or guidance on investment management, personal finance, estate, planning, tax or retirement planning, or life insurance planning.

A wealth manager can assess your entire financial life, using their expertise to tailor a strategy to help you manage your assets. This service is one of the most comprehensive wealth advisory services offered by wealth managers to clients in every kind of financial situation, and a good wealth manager will have decades of experience in working with wealthy individuals with a high net worth.

Should I Get A Wealth Manager?

“Wealth management” implies that you need to be wealthy to take on a wealth manager, which poses the question: what constitutes “wealthy”?

There’s a level of irony when it comes to deciding on the right time to get a wealth manager. Figures suggest that around $5 million to $10 million in assets is a sign of wealth, and you’d certainly need to have a wealth management expert by the time you had that much money.

But a wealth manager can help you make smart decisions and ultimately become wealthier because you’ll have your investments and assets under management – so should you consider wealth managers even if you don’t think you’re at your financial “peak”?

There are many signs that you might benefit from personal wealth management services. If you’re thinking about hiring a financial advisor for the job, consider the following:

1. Your tax bill is starting to feel painful

Wealth managers can help their clients greatly with the tax aspect of financial planning. You might know a few techniques you can use to get tax benefits, but wealth advisors know precisely what to do to get your tax bill down, and their range of financial, legal planning, accounting, and tax services may prove invaluable to you.

2. You’ve nearly exceeded your pension contribution allowance

Many people don’t pay too much attention to their retirement accounts – and generally, that’s fine. If you’re an affluent individual, however, this may mean that you’re dangerously close to breaching your account limits. Wealth management firms can help you find other retirement savings routes that are worthwhile and offer plenty of security with minimal risk.

3. You need investment advice

There are so many investment opportunities available nowadays, but not all of them are well-known to the average person. Your personal investments may stick within a certain market because you’re comfortable with what you know. But you might be missing out on adding a variety of investment opportunities to your portfolio, from private equity to real estate. Stocks and bonds are safe, but smart investors will look further – and financial advisors can draw up a suitable long-term strategy to invest your money in the right places.

4. You need help from a dedicated, hands-on advisor

Every person’s financial situation is complex and unique. A financial advisory service can pair you with a financial advisor who will stay with you over the years, helping you to make smart financial decisions and offering professional advice that only becomes more tailored and higher in value over the course of your relationship. Advisors may even implement business or legal strategies on your behalf when relevant.

Bonus Considerations

There are a few more obvious signs that you need the services of a wealth management expert, aside from having a high net worth. Perhaps you’re going through a big change, such as selling a business, and you need help to achieve your financial goals.

Pretty much any instance where you come into a large sum of money – winning the lottery, for example, or inheriting from a family member – will probably require the help of an advisor who offers a specialized wealth management service.

Wealth managers may offer a wide range of products and services to clients in a variety of circumstances, so you can be sure to find plenty of financial advisors who can help you with your specific requirements.

At Koinonia Financial, our dedicated advisors offer professional, bespoke guidance on all areas of your situation. Get in touch with a wealth manager at Koinonia Financial today to discuss your needs online or over the phone.