A Short Guide to Wealth Management
First of all, how do we define wealth management? On our own website we put it like this: “Imagine all of your assets, pensions, investments, cash as one big pot aiming to provide you with the standard of living you expect now and in the future. Wealth management is the art of joining everything together to achieve these goals.”
Financial planners will often have a department specifically for wealth management. Advisers in that department will devise a plan tailored to the client using a full range of financial services and products that will depend on their goals and circumstances. The main objective is to provide for the client’s financial future by working with them and taking any of the worry out of the process.
There are six main areas an adviser will consider when consulting with a client on what they wish to achieve from wealth management:
- Savings and investments
It is important to define what the client is saving for, how much they will need, the time frame involved, the risks they are willing to take, and subsequently building a portfolio that fits all these metrics.
Coming up with a life insurance strategy and ensuring a client has adequate medical insurance is a big part of forward planning. Also, making sure they have protection against loss of personal assets and income, and professional liability if needed.
The client will have an idea of the kind of life they wish to live after retirement, and this will require a specific amount of money. Calculating this taking into account pensions and any other large, predictable outgoings is essential.
In the case of an emergency, having a pot of cash set aside can be a literal lifesaver. The wealth manager will discuss this with their client.
Business owners may need to put a succession plan in place, arrange an optimal transfer of business interests, develop an exit strategy and minimise tax liabilities.
- Estate Planning
There is also Inheritance Tax to consider and advisers will want to create a plan to both reduce this as much as possible and maximise the distribution of assets to chosen beneficiaries.
The services offered by an adviser regarding wealth management will often vary depending on who the client consults with. Some may provide unlimited access to a dedicated advisor who is a certified financial planner for an annual fee – this can also vary depending on the complexity of the client’s financial needs. The service can sometimes include investment management, either in a discretionary or advisory capacity.
If you would like to speak to an adviser about your wealth management, please get in touch by calling 01992 500261 or emailing us at email@example.com.
This article is for information only and must not be considered as financial advice. We always recommend that you seek independent financial advice before making any financial decisions.
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gpfm are an independent financial planning company dedicated to the provision of personal, professional and objective-driven advice for our clients. We have been awarded the Chartered Financial Planners title by the Chartered Insurance Institute for offering high quality, independent and informed advice that meets the needs of our clients.