Private wealth management can help high-net-worth individuals and families holistically plan and manage their finances to achieve their monetary goals. For consumers ready to upgrade from traditional financial planning that focuses on basic principles such as budgeting and beginner investing advice, private wealth management can provide comprehensive solutions for complex questions and circumstances.
Read below to learn what private wealth management entails, how it differs from traditional financial advice, and what benefits it can offer you.
What Is Private Wealth Management?
The key to persevering the wealth you’ve worked diligently to earn and maintain is implementing comprehensive, personalized strategies. A one-size-fits-all approach simply doesn’t cut it when you have unique income streams, exclusive investment ideas, complex family and business dynamics, and ambitious retirement dreams.
Private wealth management is for individuals and families who have at least $500,000 in investable assets (typically considered high-net-worth) and desire a robust, holistic approach to their financial management.
A private wealth manager brings a higher level of expertise and experience than typical financial advisors — paying extra attention to their client’s unique investment opportunities, estate needs, risk tolerance, time horizon, and short and long-term financial goals.
It’s important to connect with a private wealth management advisor who is willing and able to provide completely customized services. They’ll also need strong communication skills and work honestly and effectively. A fee-only fiduciary will be crystal clear about both their fee structure and motivations for working with you because fiduciaries must always work in their client’s best interest. They must alert you of any conflicts of interest and seek what is best for you and your portfolio.
The advisor must also have the appropriate investment minimum for your portfolio and be willing to work in tandem with any other financial professionals in your life such as your certified public accountant.
And finally, having a stellar personality that you can easily connect with doesn’t hurt either!
Private Wealth Management Services
Specific services offered by private wealth managers can vary, but in general, their services include:
- Investment management: Private wealth managers know how to manage investments that are often only available to high-net-worth individuals. They know how to blend your personal investing preferences with the ever-changing market conditions to create a portfolio that has a great chance of performing well while reflecting your individual needs and goals.
- Private wealth asset management: While always having your risk tolerance and goals in mind, your wealth manager can help you invest in a variety of assets and readjust your diversification as necessary.
- Tax strategies: Wealth managers can help anticipate the tax consequences of different investment opportunities and advise you on certain investment vehicles and strategies to minimize your tax liability. As part of a robust retirement plan, your wealth manager can also help you plan your withdrawal strategies to optimize your accounts and stretch your withdrawals as much as possible.
- Charitable giving: You can maximize your giving even more with gift tax planning — setting up donor-advised funds and charitable trusts can help minimize your tax burden and maximize your contributions to others.
- Cash flow management: Sometimes high-net-worth individuals still need assistance with managing their monthly cash flow and maintaining an appropriate amount of liquid reserves. Wealth managers can help you manage your cash flow so you can ensure you’re making the most of your income and assets.
- Estate planning: High net-worth individuals have unique needs such as handling business successions, wealth transfers, and charitable organizations.
Benefits of Private Wealth Management
Partnering with a private wealth manager has numerous benefits, especially when you connect with the right people. Engaging in private wealth management allows you to:
- Focus on the things that matter most to you. Outsourcing certain areas of your life makes your day-to-day life easier and more manageable. It allows you to focus your time and energy on the things that matter most to you such as your family, career, and community. You can rest knowing that you’ve called in professionals who have experience and expertise in managing wealth.
- Take advantage of other’s expertise. Just like you partner with your physician for your physical needs, partnering with a wealth manager can help you manage your complex financial needs. Your wealth manager will still educate you so you can make empowered and informed decisions, but you don’t have to become an expert for your wealth to be properly stewarded. Their recommendations and insights can be invaluable to your financial well-being.
- Take just the right amount of risk. Everyone has various risk tolerance and on your own, it can be challenging to determine how to match your investments with the amount of risk you’re willing to take. A wealth manager can help you diversify your portfolio so it reflects your desired risk tolerance (while maximizing your returns!).
- Potentially avoid emotional decision-making. Your finances are highly personal and extremely important, which makes it easy to make emotional decisions that might not be the best for your investments. A wealth manager’s objective advice can help you stick to your strategies, regardless of what’s happening in the market.
Grow and Preserve Your Wealth with Us
At Five Pine Wealth Management, we understand how important it is to allow someone else to manage your finances — you want to ensure there is complete trust between you and your manager, a transparent fee structure, innovative investment strategies and opportunities, and that your advisor has taken the fiduciary oath.
The wealth managers at Five Pine Wealth are all fiduciaries with experience working with high-net-worth individuals and families. Our fee structure is displayed and we love answering questions and engaging with our clients about their financial ideas, plans, and goals. We work locally in our Boise office and around the country via our virtual services.
We offer complimentary discovery calls and initial consultations so you can get to know us, ask questions, and feel at peace before deciding to work with us. Contact us today on our website, give us a call at 877.333.1015, or shoot us an email at firstname.lastname@example.org. We can’t wait to meet you!