The wealth manager typically uses a consultative process to gather the right information about their client’s specific situation and goals. They usually work with an accountant or a lawyer on behalf of the client. Next, they try to come up with a specially tailored strategy using a wide range of financial products and services.
Unfortunately, many people think that the process of managing wealth is only limited to investment management. Let’s talk about the various aspects of this service.
Although you can always find ways to prepare for your retirement, it’s best to hire an accountant who can help you navigate the options that best suit your needs. Besides opening a Roth IRA, consider exploring other options that include a savings account, taxable investment account, or traditional IRA.
Known as one of the most important aspects of managing wealth, risk management ensures the protection of your existing wealth. You need a qualified professional who can assist you in assessing your potential for loss before taking the necessary steps to protect your assets via legal policies or insurance.
Lifestyle budgeting involves managing your cash flow and budgeting to make sure that both areas correspond to your unique needs and lifestyle. This service is extremely important for ultra-high-net-worth individuals whose lifestyle largely depends upon their multiple employees or family.
Also known as philanthropy, charitable planning is another excellent option for clients with a philanthropic desire. With the help of a wealth manager, your charitable planning can potentially ease your tax burden by creating a charitable tax deduction. In addition, it also provides you with an opportunity to give back to your community and set up future gifts for other recipients.
Estate planning involves a comprehensive process that allows you to organize your existing assets and create a plan for them after your death. Keep in mind that estate planning is another complex realm of its own. The best way for you to establish trusts, create a will, and assign conservatorship and guardianship responsibilities is to hire a qualified and experienced wealth manager.
The debt structuring process is all about avoiding the risk of defaulting an existing debt. Also known as a cheaper alternative to bankruptcy, debt structuring can benefit both the borrower and the lender.
To help you strategically pay off your credit cards, a wealth manager may recommend taking out a second mortgage and using the money to pay off your debts at once. Compared to credit card debt payments, the second mortgage will have a lower interest rate. This will make it easier for you to manage your debt.
The family office may also distribute family allowances or family exemptions to a client’s surviving spouse or minor children for up to one year following the person’s death. Besides taking priority over all other claims, these are carved out of the client’s estate. It’s the wealth manager’s responsibility to help their clients understand laws concerning family allowance that may apply to their families.
If you’re ready to get started on your financial journey, the team of experts at Legacy Financial Partners is ready to assist you. We offer various types of services including goal-based planning, financial planning, and retirement planning. Contact us today to schedule a meeting!
If you’d like to hear more information about any of our products or services, schedule a meeting today or register to attend a seminar.