What Does a Wealth Manager Do?
Wealth management is about organising your finances in order to achieve life goals for yourself, your business and your family. It normally involves an advisor, or wealth manager, who offers strategic guidance on the best way to use your assets in order to maximise their value.
Most people manage their money in an ad hoc fashion, with more or less success. Wealth management helps people to understand how they can use their assets to plan their financial future effectively and efficiently.
Wondering whether you would benefit from working with a wealth manager? Take a look at this brief guide to the services offered by wealth management companies, and the benefits you could expect to receive.
What Kind of Clients Do Wealth Managers Work With?
The clients who choose to work with a wealth manager normally have sizeable assets and require guidance on how to invest them for the best return. There are many different kinds of clients who choose wealth management. They may have assets that are growing fast, and need help to manage them, or perhaps a couple has accrued assets over a lifetime and need help planning their retirement.
What Does a Wealth Manager Do?
Wealth management services are bespoke to each client. They will usually include a combination of tax planning, investment advice and estate planning, but these will be tailored to specific circumstances. A wealth manager will normally begin by listening, therefore. They will want to understand a client’s family, their business interests, and the goals that they wish to fulfil.
Once a wealth manager achieves a detailed understanding of their client, they can begin to develop a strategy whereby those goals can be achieved.
What Services Does a Wealth Manager Offer?
In order to meet the unique requirements of any given client, a wealth manager will use a combination of the following services:
1. Business Finances
If you’re a business owner, you may wish to consult with a wealth manager in order to maximise its personal value to you. They will be able to advise of the best options for taking an income out of the business, and provide guidance on investing business assets.
Your wealth manager will also be able to advise on protection insurance products, in order to guard against loss of key personnel, business interruption, legal costs and supply chain breakdown.
2. Tax Planning
Tax planning is an integrated component of wealth management. The aim will always be to organise your wealth in the most tax efficient way, so that you are not paying any more than you need to. This process will take into account income tax, inheritance tax and capital gains tax.
3. Investment Management
Wealth managers use investment portfolios to make your money work on your behalf. Each portfolio is tailored to match your life goals, and your risk appetite. The aim of investment management is to give you confidence that the life you are planning for can be achieved using the assets that you have.
4. Pension Benefits
Personal pensions offer the advantage of tax-efficient savings which allow you to accumulate a pot of money that can be used as part of your retirement fund. Your wealth manager will be able to advise on which pensions offer the best value when placed alongside workplace pensions and the state pension you will receive.
5. Estate Planning
An Estate Planning strategy provides clients to create a clear plan that will minimise Inheritance Tax liability and maximise the benefits accruing to the family. A wealth manager will advise on a range of measures in order to achieve this:
- Development of an investment portfolio tailored to legacy objectives.
- Maximising of annual tax-free allowances.
- Protection policies that will help minimise the Inheritance Tax bill.
- Structures, such as gifting funds, created to transfer assets to beneficiaries.
Would a Wealth Manager Benefit You?
Wealth Management benefits anyone who has sizeable assets and clear financial goals they want to achieve. Maybe it’s a retirement in the sun, a legacy to pass on to the next generation, or the growth of your business. A Wealth Manager helps by creating and managing a financial plan that will take you from where you are now to the successful achievement of your goals.