The world of private wealth management is so important to people just like you — high-net-worth individuals and their families, and those who are quickly becoming wealthier. There are a lot of moving parts involved in managing high-value estates, businesses, assets, and portfolios, and it’s far too common for predators and pretenders to look for ways to exploit you and your family.
That’s why we feel it’s important to go over exactly what private wealth management is and why it matters so much to those with high-net-worth. Read on to find out everything you need to know.
What is Private Wealth Management?
For many. there are eight primary types of planning strategies that financial advisors in private wealth management use. Understanding what these strategies are and what they involve will help you understand private wealth management and if it suits you. Let’s dive a little deeper:
Income Tax Planning
- Income tax planning typically revolves around mitigating taxes on any money that a client has earned while working or through any investments they’ve made. For example, in private wealth management, a wealth advisor may recommend strategies and changes in your portfolio, and in turn, reduce the rate of income tax.
Generational and Estate Planning
- In essence, estate planning is when estate planners and financial professionals decide how and by whom assets will be owned in the future. This is done using legal strategies and various financial solutions. The key here is that both professions are integrated and working together rather than independently.
Marital Planning
- Marital planning (which can include other similar relations) is when we plan ahead for any fall-outs between spouses and family members. The main goal of this is to protect a client’s wealth and assets.
Business Succession Planning
When it comes to transitioning the business into someone else’s hands, business succession planning comes into play. This is done in tax-efficient ways to save clients and their families a big tax bill.
Asset Protection Planning
- Asset protection planning is there to make sure that a client’s money is never unfairly taken away. Financial professionals do this using clear and legal strategies, concepts, and financial solutions so that the client always knows exactly what’s going on.
Charitable Tax Planning
- Some clients enjoy generously donating to charity. Charitable tax planning helps these individuals by providing recommendations and strategies to not only give back to the community but also gain tax benefits in the process.
Cross-border and Inbound Planning
- When a client has businesses in different countries or is planning to move abroad, things can get tricky. A private wealth management will research international tax laws to help the client pay as little tax as possible.
Life Management Planning
- Life management planning is a popular strategy. When it comes to planning a client’s wealth, we want it to last a lifetime. With Confidence Wealth Management, we will go over everything and face any worries head-on.
Many of these strategies are intertwined and used side by side by our wealth advisors. For example, when deciding on assets for estate planning, we may also find ourselves presented with the chance to work on asset protection. Similarly, estate planning is often very closely related to business succession planning. Looking at the above strategies, it’s pretty clear that private wealth management, above all, is designed to help clients meet their financial wants, needs, and goals.
Why Does Private Wealth Management Matter?
So, what is it that truly makes private wealth management different, you ask?
Their focus. Private wealth management focuses on the human element of the situation — You! — rather than just the strategies and financial solutions.
The Human Element
One of the main goals in Private Wealth Management is to understand each of their clients on a deep, personal level — a level that goes way beyond just the numbers.
How does this differ from the technically skilled financial advisors out there in the world?
Well, there’s quite a contrast. These financial advisors tend to focus on the mass financial products. It doesn’t offer the same level of personal relationship and understanding that an a private wealth manager will share with you.
As private wealth advisors, we believe that the human element is the most important aspect to consider. Everything we do revolves around you, the client, and you must be considered at all times and with any decision made. Our mission is to match up all of our technical solutions and capabilities with whatever it is that you specifically want or need as a person, not chuck decisions at your head without any involvement or consideration.
More often than not, a standard financial advisor overlook the human element in the race to prove their financial and legal expertise. On the other hand, we believe that you can’t get meaningful results without truly understanding a person at their core. Over time, we work to build up a relationship of trust, familiarity, and security, working together to help meet your financial and personal needs and goals. This is exactly why Private Wealth Management matters.
Be Wary
Keeping the above in mind, it’s so important to keep a watchful eye out for financial advisors and wealth planners with the wrong intentions.
There are those who pretend and can’t keep up with their promises, possibly not recognizing their own limitations. There are predators who set out to cheat clients out of their money by promoting solutions that are simply far too good to be true, and there are those who aim to exploit wealthy individuals — their eyes more focused on a stack of cash than doing their job correctly.
Private Wealth Management is Right for You
Chances are, you didn’t get to where you are today by sitting on your hands or twiddling your thumbs. Apply your drive and foresight to planning for your future and managing your wealth proactively.
Request a 15-minute call or call us at (310) 820-4411 to learn more about how you can benefit from private wealth management. We’re here for you.
