As your portfolio grows, you likely know that you can benefit from the help of a financial planner. But when should you move on to an actual wealth manager? Here are a few indicators that it's a good idea.
1. You Meet the Criteria
Wealth managers generally start working with high-net-worth individuals, which generally means having at least $750,000 in managed assets, but some wealth managers work with those who have less money. The reason for this change? As your investments grow, your taxes can also grow exponentially, you have a larger volume to manage, and your financial opportunities are greater. So if you've reached the criteria for a specialist, there's a reason why.
2. You Don't Have Time
Managing a large amount of assets is time-consuming. Unless this is your active, full-time job, you're probably trying to juggle everything in your spare time. But that puts you at risk for missing out on things or making avoidable mistakes. A financial advisor can help, but a wealth manager is a more hands-on advisor who will take on much of the work for you rather than just advising.
3. You Have Many Moving Parts
Many people who build large assets also hold a wide variety of investments in all forms. They likely have multiple insurance policies, banks, business entities, accounts, and hard assets. A wealth manager can help you untangle a mass of financial interests that's grown over time and streamline things for efficiency and ease. But you need a dedicated professional unless you want to do this work all by yourself.
4. You Need a New Plan
Investors with smaller portfolios often focus on growing their assets, but what happens when you reach that next level of wealth? Your goals may now morph. Rather than spending the majority of your efforts to build wealth, you may now need to protect it. You may want to expand your charitable activities or help other individuals. Or you might want to try new investments. The goals themselves vary, but they call for a fresh approach to your money.
5. You Want a Single Advisor
Wealth management professionals generally perform a more thorough and rounded service for their clients. Financial planners work with other finance professionals and organizations, but you will need to build relationships with these outside entities. Wealth managers, on the other hand, do more services in-house. You form one key relationship with someone who understands your overall goals and can carry them out.
As you reach the next level of wealth accumulation, the time comes when you need to consult with a specialist. A wealth management pro can be that specialist. Learn more about what makes them different by making an appointment today.