Get the Fundamentals of Wealth Management in 5 Minutes or Less

Far too few Americans are properly managing their wealth. On the retirement income side, 1 out of every 4 Americans does not have any retirement savings. A far greater number of people are not saving enough to maintain their lifestyle. However, retirement income is just one facet of a person’s overall wealth management strategy. Many people are neglecting other elements such as estate planning and investments.

Read on to get the fundamentals of wealth management. Explore topics such as calculating minimum net worth and wealth building. Learn how you need more than a financial advisor to maximize your wealth potential.

What Is Wealth Management?

Before diving into the basics, it is important to define the term. Managing wealth is a multi-faceted service that aims to grow your net worth. A financial advisor’s primary goal is to increase a client’s net worth.

A person’s net worth is determined by their portfolio of assets. The client’s liabilities are another factor in a net wealth calculation.

A wealth manager is also charged with developing a strategy to pass those assets to their client’s heirs. Settling a client’s debt after their passing is another responsibility of a financial services company.

Managing wealth requires a comprehensive approach to a client’s portfolio. A wealth manager looks at tax and estate planning, investments, and business development. In addition, legal requirements and philanthropy are also on the docket.

Do You Need a Wealth Manager?

Not all people need or can afford professional financial advice. If you are part of the 25% of Americans without retirement savings, financial services are probably not for you.

The minimum net worth threshold for financial services generally starts at $250,000. Of course, it depends on the required services as a greater level of support is necessary as net worth increases.

Your wealth manager is going to carefully evaluate your cash flow and assets.

Business owners commonly require financial services. For both retirement and afterlife planning, the transfer of business ownership is an important topic.

When your income moves into a higher tax bracket, a wealth manager can help. Your manager helps protect your hard-earned money from Uncle Sam through tax planning strategies.

How Do You Build Wealth?

Now that you know what a wealth manager does and if you need one, it is time to build your wealth. Building wealth is achieved through a multi-faceted approach.

A sound investment strategy is one critical element. Your wealth manager helps your money grow with a tailored investment strategy. They manage your investments in stocks, bonds, money markets, and more based on your long-term objectives.

Business planning is another area where wealth managers stand ready to help. They can help your business grow and expand into new markets.

The Fundamentals of Managing Your Wealth

If you are a business owner or have significant assets, now is the time to see a wealth manager. They can help grow your portfolio and ensure your family is taken care of.

We take a comprehensive and personal approach to each client. Everything from investment strategies to estate planning is on the table. If you are looking for wealth management services, contact us today for a consultation.

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