The cornerstone of good financial advice is putting in place a solid wealth management strategy and finding the right wealth manager to work with. A good wealth management plan will allow you to enjoy your lifestyle, whilst building and protecting your financial position for the future.
What is wealth management, and do I need it?
The aim of wealth management is to help maintain, grow and protect the value of your capital, whilst minimising tax. The approach usually encompasses your whole financial strategy taking into account your personal situation, aims and aspirations, tax, investment and estate needs alongside your attitude to risk.
Wealth management is a highly effective approach for many people and can be particularly important if you’ve spent time and energy building up a pot of savings and investments. In the past, it was usual for wealth management to be perceived as useful only for those who were extremely wealthy, and approaching retirement, but today that view has shifted and now younger generations are taking a much more long-term approach to their wealth.
How much money do you need for wealth management?
There really is no magic number at which you need to start to consider a financial strategy. Most wealth managers usually work with individuals who are very financially secure, sometimes referred to as high-net-worth individuals. Typically, clients who access wealth management services have a significant amount of savings and investments which require careful management.
What role does a financial planner play?
Financial planners typically help you establish a strategy for your finances which works over the short and long-term. It also takes into account lots of areas from tax mitigation to retirement and estate planning. Some of the key questions which your financial planner may consider include whether you intend to buy or invest in property, undertake an international move, set aside funds for children or grandchildren, or boost your retirement income. They will also take time to understand your attitude to risk.
Once your plan is in place your financial planner should manage it on an ongoing basis to include regular reporting, reviews of how your funds are performing to ensure they remain suitable for your risk profile and objectives, and recommendations of changes needed as your plans and circumstances alter through life.
The best planners also provide analysis and comment on world markets, financial news, key trends and new funds to ensure that you are fully informed, with access to information at any point at which you need it.
Portfolio management vs wealth management
Wealth management and portfolio management refer to two different strategies when financial planning. Wealth management is a broad strategy to help protect and build your capital, whilst keeping up with the rate of inflation, so that the value of your savings doesn’t diminish over time.
Portfolio management is a more specific tool, referring to the process where investments are carefully chosen and overseen to meet your long-term financial goals. Whilst taking into account your attitude to risk.
How we can help
Having worked hard for your capital, it makes sense to preserve it as best you can with a well thought through wealth management plan. Progeny offers a complete wealth management service to ensure that your financial plans are co-ordinated and work together to meet your overall objectives.
Ultimately our role is to help our clients achieve financial freedom – whatever that looks like for you. We aim to work closely with you to determine what financial freedom means to you, before putting in place the financial plans that will help you achieve it.
For more information, or to discuss your plans in more depth, please contact your nearest office.
Important Note
The information contained within this document is subject to the UK regulatory regime and is therefore primarily targeted at consumers based in the UK.
This article is distributed for educational purposes only and should not be considered financial advice.
If you are unsure about the suitability or otherwise of any product or service, we recommend that you seek professional advice.
The opinions stated in this document are those of the author and do not necessarily represent the view of Progeny and should not be relied upon to make a financial decision.
Information contained herein has been obtained from sources believed to be reliable but is not guaranteed.
If you are unsure about the suitability or otherwise of any product or service, we recommend that you seek professional advice.
Tax treatment depends upon individual circumstances and is based on current UK tax legislation, that is subject to change at any time.
