Instead of a leaning solely on an investment broker, you should consider hiring a wealth management consultant to advise you on a complete money management strategy. These financial gurus are not only for the extremely wealthy. According to one expert, if you have $200,000 in bank and investment assets, you are a candidate for wealth management.
Investment brokers are trying to sell you something, but wealth management consultants are independent. They do not receive a commission for trades and are not on the payroll of a mutual fund or other biased organization. Their responsibility is to you and your money. As a result, you can expect objective advice that works for your particular situation. They will oversee your entire financial strategy and work with the other experts on your money team.
Wealth managers are experts in preparing you for retirement. They do not focus on individual investments but on your entire lifestyle. They consider how you live now, how you want to live when you retire, and how much you want to leave to your beneficiaries. If you experience illness, divorce or other lifestyle changes, they suggest alterations to keep your retirement intact. They also coordinate with attorneys, investment brokers, and anyone else involved with your finances. Their only job is to protect your financial health.
Before hiring wealth management advisers, be certain you understand their fees. They are based on assets under management or AUM, so advisers only up their money when your assets thrive. Make sure you understand your manager's fee schedule before committing to a contract. The fees are substantial, though many clients feel that having an unbiased expert working for them is well worth the price. Wealth managers are also fiduciaries, so they are given great power to act on your behalf, but they are also held to a very high standard. They must act in your best interest and not merely to increase their own compensation.
In 2014, the U.S. gained 500,000 new millionaires. Also, 10.1 million households now have at least a million dollars worth of assets to invest. The number of wealthy people is steadily increasing. However, becoming wealthy is one thing. Remaining wealthy is another. Especially for those who are new to affluence, wealth management is a wise choice. You want your money to grow so you can maintain your standard of living throughout your life. If you have significant assets, get the advice of a wealth manager.