What is wealth management?
If you wish to meet your investment needs, achieve your financial goals and work with qualified advisers, you should consider a wealth management service.
To give you a clear idea of what this entails, this article will take you through what wealth management is and its benefits.
What is wealth management?
Wealth management is a service offered by professionals to help you plan and achieve your financial goals, through creating an effective financial plan and investment portfolio.
This involves financial advisers and investment managers assessing each component of your financial situation and aims – and by then devising the best strategy to help you grow and secure your wealth.
For example, Netwealth’s investments and wealth management service enables you to work with their experienced team of advisers, and you can use powerful online tools to guide you as you plan for each of your financial goals.
Their experts can help you with key life events such as retirement or school fee planning, and provide recommendations on how to invest and structure your savings, in order to build your unique financial plan.
What are the benefits of wealth management?
There are a variety of advantages of using an expert wealth management service. These can include:
- Effective planning to achieve your goals
Every individual will have their own financial circumstances and life events to consider when it comes to wealth management.
For instance, you might be approaching retirement and want to make the most appropriate contributions to your pension and investments, which allow you to retire with sufficient funds.
Whatever your goals are, a wealth manager can give you specific guidance on how best to achieve them, and build a plan with you that takes into account various factors, such as changes to tax, inflation, time horizon and risk level of your portfolio.
They’ll also help you combine the right account types – ISA, pension, JISA, etc – to give you the best chance of reaching your financial targets, factoring in portfolio risk levels and your own investment values.
- Adaptive and evolving management
Another major benefit of a wealth management service is the ongoing relationship with your expert wealth manager(s), where you can continuously review, adapt and develop your financial plan as required.
While they may have their particular specialist areas, such as investing and financial planning, a wealth manager won’t just address one aspect of your financial situation, but cover every part necessary to help ensure your wealth’s resilience and growth.
For example, they can help you devise strategies that will give you a clear view of where you are financially, where you want to be in the future, and how to get there, while helping you adapt to any changes to your circumstances as they arise.
You can rest assured that any variables which could potentially affect your financial outcome – changes in career, planned contributions or withdrawals – can be effectively addressed in your financial plan, to help you reassess your strategy in future.
- Investment and portfolio management
A wealth manager will also manage your investments on your behalf, aligning with your established goals, and adjusting your portfolio depending on your risk tolerance and where you are in your life if need be.
With their vast experience, they can help you to structure your wealth and customise your cashflows, in order to meet your specific goals.
They can also ensure your values and ethics are reflected in the financial decisions they make for you. For example, they can make socially responsible investments (SRI) on your behalf.
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Effective wealth management is one of the keys to growing your finances in the most efficient and resilient ways.
If you haven’t already considered wealth management, we strongly recommend you get in touch with appropriate financial professionals now.
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Please note, the value of your investments can go down as well as up.
