Many affluent and high-net-worth people utilise wealth management services. This gives them peace of mind to focus on the things they love. Wealth management helps them to assess their financial affairs and achieve financial stability.

This suggests that while acquiring wealth is “simple,” growing and managing wealth is more complex. This, however, isn’t the case. Both growing and maintaining your wealth requires equal amounts of attention, motivation and dedication – and both benefit from the assistance and guidance of an experienced financial adviser.

Managing your money involves much more than ensuring you’re covered for all contingencies. Let’s look more closely at wealth management.

What is Wealth Management?

Wealth management is the wide range of financial decisions you’ll have to make to maintain financial security. If you’re one of the people who have amassed a significant amount of personal and financial assets, then your next step will be to create a plan to manage those assets to yield the best outcome.

The idea of wealth management is to avoid making the wrong decision. It’s easy to have a plan but difficult to have the discipline to follow it. Having a wealth manager offers a lot of benefits. They will help you better understand how to maintain your assets and make the best decisions concerning your portfolio.

The IOOF The True Value of Advice research paper released in 2020 found that 90% of those with an adviser agreed that their adviser is a critical partner in their financial success.¹

Investment consulting services combine other financial products to serve the needs of people who need to manage their wealth. Every accredited financial adviser uses an advisory approach to gather information regarding their clients’ requirements and specific goals. Usually, wealth managers employ a holistic approach. For clients’ focused needs, specialised services may be available such as self-managed super fund advice, estate planning advice or aged care advice.

What are the Signs That You Need Wealth Management?

1. You Struggle in Investment Tracking

If you can’t keep track of your investments, you shouldn’t be doing it alone. A wealth manager will ensure that your assets are accounted for, suitably diversified, and your holdings are balanced.

While you may think you know what you’re doing, an expert professional will be able to make sure that your money is performing as well as it should be. They’ll also be able to make sure your money is safe from fraud, theft or investment scams.

2. Growing Net Worth and Maintenance of Existing Net Worth

When there are too many moving parts, making all the decisions required to expand and protect your assets is difficult. Suppose you’re investing in shares, bonds, real estate, businesses and multiple goals simultaneously.

As your assets increase, managing them properly is essential to avoid a financial setback. A wealth manager will help you balance the growth of your purchases with what is required to maintain those existing assets.

They can ensure your portfolio is constructed and managed in a manner that can allow you to fund multiple goals with different completion dates at the same time. Additionally, if you continue adding more assets to your portfolio, a wealth manager can provide guidance on where to direct these assets to ensure you maintain exposure to an appropriate level of risk for your needs.

3. You Are Unsure How to Manage Your Tax Liabilities

The Australian tax system is a multi-faceted, extremely complex system that becomes more complicated as you accumulate more wealth and attract higher tax rates. As you grow your wealth, it is likely that you may become liable for capital gains tax and your income from investments will require tax paid on interest, dividends, rent, etc.

An experienced financial adviser can help you optimise your investments and finances to take advantage of investment opportunities whilst also considering the most tax-effective strategies and structures for your situation – this will help you to minimise your tax burden and create more wealth.

4. Assets That Need Special Attention

Maybe you have assets you cannot place in a standard investment portfolio. For example, you might have stocks that are not traded publicly and thus cannot be traded on a stock exchange.

You might also have a valuable collection of art that you wish to retain. A wealth manager will help you understand your assets’ nature and how to manage them.

Understanding Wealth Management

Wealth management includes more than just investment tips. Depending on the individual financial situation it could include everything from superannuation to investments to insurance to estate planning. Wealthy individuals may prefer to combine strategic advice and products from multiple experts rather than using a single product or process. In implementing this method, wealth creation managers can coordinate services needed to handle clients’ investments, as well as develop a strategic plan to address current and future needs.

Where are you now versus where you want to be?

What are your money goals? What are your chances of achieving them? The possibility of achieving your goals is greatly increased by developing a plan with the right investment strategy for your needs.

When you’re in the process of building your financial portfolio, you need to make sure that you avoid costly mistakes. A professional will help you both grow and maintain your wealth, which can be a positive step toward preventing any investment or lifestyle mistakes.

With our extensive specialist knowledge, a Coastal Advice Group Financial Adviser can help you with all your Wealth Creation and Wealth Management needs. We have offices located in Newcastle, the Central Coast, Sydney, Port Macquarie, and Byron Bay. Call us or book online to secure your complimentary first appointment with us today and get started!

REFERENCES:

1. https://www.ioof.com.au/financial-advice/the-true-value-of-advice#:~:text=93%25%20believe%20advice%20provides%20clarity,towards%20and%20reach%20their%20goals

DISCLAIMER: The views expressed in this publication are solely those of the author; they are not reflective or indicative of RI Advice Group’s position and are not to be attributed to RI Advice Group. They cannot be reproduced in any form without the express written consent of the author. This information (including taxation) is general in nature and does not consider your individual circumstances or needs. Do not act until you seek professional advice. Newcastle Financial Planning Group, Central Coast Financial Planning Group, Sydney Wealth Advisers, Coastal Advice Port Macquarie and Coastal Advice Ballina Byron are subsidiaries of Coastal Advice Group Pty Ltd which is a Corporate Authorised Representative of RI Advice Group Pty Ltd, ABN 23 001 774 125 AFSL 238429.