When individuals with sizable assets hire a wealth management firm, they’re generally looking for comprehensive advice in several different financial areas. This can include everything from estate planning to tax mitigation to investments and more.
As the number of people with significant investable assets continues to grow, firms that provide wealth management services are poised for tremendous growth. As a result, they’re facing disruption from new customers, shifting demographics, evolving regulation and more. These forces are causing a realignment of the industry, and as a result, some investors are considering new options for their wealth management needs.
In some cases, a wealthy individual may have accounts with multiple brokers and investment services. This can make it challenging to keep track of all their investments and the costs associated with them. In these cases, it can often be more cost-effective and time-efficient to find a wealth management firm that can consolidate all their account activity into one place. This can also help to avoid the potential for conflicts of interest that may arise when a financial advisor has access to multiple brokerage and retirement accounts.
If you’re thinking about working with a wealth management firm, be sure to ask about their fee structure and whether they have any specific credentials that could set them apart from their competitors. For example, some wealth managers may have specific certifications, such as a Certified Financial Planner (CFP) or Chartered Financial Analyst (CFA), that indicate their level of expertise and ability to manage complex portfolios. These credentials can often be found on a wealth manager’s website or through other online resources, such as financial publications or Bankrate’s financial advisor matching tool.
Some people choose to work with a private wealth management firm because they have special responsibilities or unique circumstances that require specialized knowledge and experience. This can be the case for family members of those with significant wealth, as well as for entrepreneurs who have built up a successful business and are now ready to transition into retirement or another phase of their life.
Another reason that some people choose to work with a wealth management firm is because they want to simplify their investing activities. Keeping multiple brokerage and retirement accounts can add up to unnecessary fees over time, and it can be difficult for busy people to stay on top of their investments. Many firms that offer wealth management services have simplified investment platforms that can help to reduce costs and streamline the process of managing a portfolio.
Ultimately, the best way to decide if a wealth management firm is right for you is to evaluate your own financial situation and determine if you would benefit from a more holistic approach to managing your finances. If you’re not sure where to start, SmartAsset’s free, no-obligation wealth management quiz can match you with vetted financial advisors who serve your area. In just five minutes, you can be on your way to finding a wealth management firm that can meet your specific needs. wealth management firm