Wealth Management: What And Why?
Wealth management services are provided, for the high net worth individual or family, by banks and private professional firms.
The strategic wealth management advice and specially-tailored solutions that these organisations offer can be used to sustain long term wealth through tailored retail banking services, estate planning, taxation advice and the managing of investments.
Wealth management is an important consideration for the individual who has worked and planned hard to build his/her personal worth. In order to protect, as well as grow your assets and investments, careful deliberation over the intelligent management of your estate is required.
So, why can’t you handle your wealth management yourself? Why do you need to procure the services of a specialised firm of professional advisors?
Why Shouldn’t You Be Managing Your Own Wealth And Investments?
While it is entirely possible for you to manage your own wealth, after all it was your sound financial decisions that quite possibly earned your wealth in the first place, it is usually a good idea to at least consider outsourcing wealth management services.
It’s understandable that you might be averse to the idea of having your wealth and assets in the hands of someone else. The truth of the matter is that that “someone else” will be a professional whose life has been dedicated to effective and strategic wealth building.
Consider the following questions with regards to managing your own investments, these questions should reveal a better-than-fair amount about how you approach finances and whether or not you think the way you should for successful wealth management:
- Can You Emotionally Detach Yourself From Your Investments?: Yes, you care about your wealth and your assets, and no one can hold this against you. However, in order to make intelligent financial decisions you absolutely have to separate your emotions from your money.
- Can You Identify “Aggressive Accounting”?: Utilizing aggressive accounting techniques, immoral individuals at management level can work the numbers in their accounts to appear more attractive than they are in actuality. It’s doubtful that you will recognise this without the trained eye of a professional advisor and may end up incorrectly investing your capital.
- Do You Understand The Fundamentals Of The Business?: How much do you know about the company in which your investments lie? What do you know about the fundamentals of how they do business? This is all the insider information allowing you to see crises before they come.
These questions are, of course, only simplified examples to give you an idea of how suitable your intellectual framework is to the stresses of investing and wealth management.
If you have substantial investments and a large estate to manage, it’s a far better option to procure professional wealth management services than to take care of it yourself. This isn’t because you’re not qualified to understand your own finances, but simply because the experience and knowledge of trained specialised professionals is not something you can learn overnight.
Their success is your success, so trust them to make the most money from your money.