Wealth management services are designed for affluent individuals who have accumulated significant assets and require specialized attention to preserve and grow their wealth. A professional wealth manager will work to understand your unique goals and aspirations, then use a disciplined process to develop and implement an investment strategy that aligns with those goals. They will also help you to identify and manage potential risks, both known and unknown.
While some of these professionals may be employed by a specific financial institution, they can also operate independently as consultants or fee-based investment advisors. In addition, they can be members of a larger wealth management firm that provides comprehensive services to its clients.
When you engage a wealth manager, you’ll need to be prepared for a close partnership. A good relationship with your manager will depend on your ability to communicate effectively and clearly define your objectives, both immediate and long-term. Your manager will likely conduct a comprehensive risk assessment and interview you to determine your personal financial goals. He or she will then develop an investment plan that incorporates your goals, time horizon, and tolerance for risk.
In addition to establishing an asset allocation strategy, your wealth manager wealth management halifax will also monitor and review your portfolio, making adjustments as needed. He or she will also help you to establish a tax-efficient strategy, taking into account income, capital gains, gift, estate and generation-skipping transfer taxes. They will also address tax-loss harvesting strategies and utilize hedging techniques to reduce the impact of volatile markets on your bottom line.
Depending on your circumstances, wealth managers can offer additional services, such as family office consulting, private client brokerage, and business succession planning. They can even connect you with a real estate broker, insurance agent or attorney for specialized needs.
While you can hire a wealth management professional to handle your entire financial picture, they are most valuable when they complement your existing efforts and provide an outsider’s perspective. For example, it doesn’t make sense for someone without mechanical expertise to try to fix their own car’s transmission, and it doesn’t make much sense for affluent individuals to attempt to master the theory and skills of professional investing on their own, especially when millions are at stake.
