Have you ever heard of wealth management and financial services? If you have been in the business field for quite some time, or if you are an affluent individual with high income, then you surely have. We’re willing to bet that anyone has heard of wealth management, or financial services at least! They’re a must-have for any business and investor.
Wealth management refers to planning and strategies designed to manage your wealth and finances perfectly, make sure they grow in the long-term. But here’s the thing: wealth management is not just for companies. It can also be for individuals. Sometimes, people who have high volumes of wealth need an outside option on how to keep track and manage that wealth so it stays safe and sustainable in the long run.
So, let’s talk about…
Private Wealth Management
You can guess what private wealth management just by reading the title. Basically, private wealth management helps individuals keep track of the investments, funds, financial plans, and taxes, as opposed to providing these services for companies or institutions.
Take actors as an example. They are individuals, and what they have quite a lot of is wealth. That’s why most of them opt to hire private wealth managers to take care of the financial side of things, while they focus on their acting career. Actually, actors without private wealth managers do not really succeed, because they end losing track of their finances, and invest in the wrong spheres.
As with regular wealth management firms, private wealth managers also cater to high-end clientele who are also known as high-net-worth. Based on the assets that are under management per individual, these managers will require a fee that is not substantial at the beginning stages.
Speaking of beginning stages:
Private wealth advisors will begin their process by first making sure that whatever business you are investing in is able to generate income. Because without income, there is no wealth. And without wealth, well, there is no wealth management! How do they do it? They use different investment solutions which they have developed over years and years of trial and error.
After the yearly income is generated, then they will make sure that your assets are protected and well-managed. This means a private wealth manager will make sure you are not stuck with legal issues and threatening situations.
When income is generated, there is bound to be tax. And they can help you with this as well, making sure that your tax payments are done correctly! Nobody wants to suffer from tax related issues, especially high-net-worth clientele who, for lack of a better phrase, have so much else to do!
Why hire a private wealth manager?
If you a high-end-worth individual, chances are that you cannot devote enough time (and energy) to figuring out how your finances work. Well, what do you? You can’t just leave them! You will definitely need investment management. This is when a private wealth manager will come in handy. Like we’ve said before, with more money comes more trouble, and private wealth managers will help you deal with these problems using carefully thought-out strategies. While you remain passive, they will actively produce solution after solution and get your finances managed the way they should be.
Then why don’t HNWIs hire financial advisors instead?
Well, because aside from just having more money than a regular person, HNWIs also come with a lot of unique problems that a standard financial advisor cannot solve. Imagine having tons of money, and not knowing how to deal with taxes, where to invest it, which property to buy, and how to take care of the legal side of things. A regular person can have the same issues as well, but the extent of wealth an HNWI has makes them more prone to dangerous situations. Wealth managers are there to make sure this does not happen.
Yes, wealth managers, especially private ones, must have top-notch social skills. That’s because they will be working with other people their clients may have hired, such as lawyers, bookkeepers, and in case of actors, PR agents.
The business side of things aside, advisors who work with clients on private wealth management, often develop firm relationships with them, making sure that they clearly understand their clients’ financial goals and ambitions. Often time, they will actually become close friends! Keep in mind that these wealth management advisors help their clients with a wide variety of life-changing decisions, such as investment management and planning, managing their portfolios (which a science of its own), figuring out estate-related solutions, even mortgages. Personal wealth advisors are also directly responsible for asset protection, so they better be a person who is trustworthy and completely understands where their client wants to go. And imagine how hard it can be a wealth advisor to tell a client that something is not a good idea in terms of finances, when the client insists that it’s a perfect idea! You need to be close with the person to have the courage to prove them otherwise!
More than one type:
Let’s talk about the different types of private managers and what they can do for your business:
Usually, these private management services are part of larger firms that handle a multitude of wealth management tasks. When an individual reaches to out to such a firm, they are assigned a private wealth manager who will manage the client and make sure their investment grows over time.
Here are some of the areas in which these groups can help clients with:
- Assets that may have debts or other liabilities attached (equity)
- Fixed income management
- Investment management
- Portfolio building
- Risk assessment
Nope, not quite what you think!
If an HNWI decides that a more expanded range of services will suit them more, then they can set up what is known as a “family office” which offer more comprehensive solutions to the client’s needs. These can be categorized into two groups:
As you can perhaps tell, a single family office deals with one HNWI, whereas the multifamily office deals with more than one. Actually, because of current economical developments, you will see more of the latter when researching private wealth management services.
How personal wealth management works in payments:
Just like with any firm, private wealth management firms require fees to be paid for the services that they offer. Usually those fees come in the form of percentages of the assets belong to clients that they manage.
If you feel like you are in need of personal wealth management and that your investments and assets need to be protected, do not look to far ahead! We’re right here! All you need to do is visit our website, and see how Jerome Basilio’s team offers investment opportunities to its inner circle of high-end clientele. We’ll make sure that your business grows safely, and that your investments are tightly protected!