Considering this blog post’s topic, we thought it’d be good to remind you that Taxlinked members are eligible to receive a 15% discount to BOSCO’s Conference WealthPro to be held in Riga, Latvia, on June 7-8, 2016. For details, please check our discussion HERE.
Many financial specialists will recommend high net worth individuals to hire a wealth manager to help them out with their finances. Others, instead, believe individuals, via trial and error and plenty of studying, can learn how to best manage their assets without the need for outside assistance.
In this blog post, we will take a look at a few of the main reasons why hiring a wealth manager is a wise choice.
Guides You Through Difficult & Risky Times
During times of economic crisis, a wealth manager can help you wade through the chaos and keep yourself afloat.
Their knowledge of the market, access to loads of information and overall experience can be a useful tool to preserve your assets and come out still standing once all is said and done.
Jeremy Sorci, who works for Premier Financial Group, says, “Perhaps the most significant benefit of professional investment guidance lies in the fact that’s simply an efficient way to access information.”
Additionally, a wealth manager, says Wealth Management Advisors Inc., will help you “identify risks in your portfolio that you might look right past, like being overweight in the US…or being mostly invested in tech stocks, when you're in the tech industry.”
Removes Emotional Decision-Making from the Equation
According to Ritholtz Management, a wealth management firm based in New York City, “Investors are not hardwired to make rational decisions when confronted with emotional, challenging facts with regard to their investments.”
In the firm’s opinion, a wealth manager serves “as a barrier between investors and their own worst instincts,” helping high net worth individuals by setting “a buffer between both the Buy & Sell button.”
Additionally, wealth managers, per Business Insider, are “not biased towards one particular investment product or strategy” given that they’re generally “paid a percentage of clients’ assets under management.”
Helps You Plan for Retirement & Your Family’s Future
Liz Weston, writing for Money Talk in the LA Times, says one of the jobs of a wealth manager can be to help individuals prepare for retirement.
When working with a wealth manager, Weston writes, “your investments should be targeted to your specific needs, time horizon and risk tolerance,” and “your planner should advise you about sustainable withdrawal rates once you retire, so that you minimize the risk of running out of money.”
Furthermore, the older you grow, the greater the level of complexity involved in financial planning.
Greg McBride, Chief Financial Analyst at Bankrate.com, says, “As time goes on, your financial situation will likely grow more complex. Add children and, eventually, a potential inheritance or retirement into the mix, and there's suddenly a lot to keep track of.”
In an ideal world, says Weston, “the best wealth managers provide a one-stop shop that alleviates the need for you to try to coordinate all these services yourself.”
Gives You Time to Focus on Other Stuff
Given the time constraints faced by high net worth individuals as a result of their myriad of obligations, it might be a good idea to hire a wealth manager to handle your assets.
According to Taxlinked member Steven Landes, who runs S H Landes LLP, a London-based firm of Chartered Accountants and Registered Auditors, “wealthy people are asset and/or cash rich but time poor.”
“It is very difficult to manage a large diversified investment portfolio on a part-time basis so high net worth individuals should hire an expert,” he says, adding that, “any decent expert should be able to pay for himself by generating higher investment returns than a part-time amateur.”
These are just a few of the many reasons why hiring a wealth manager is a good idea.
Now that you’ve been convinced, though, what are some of the things to consider when hiring a wealth manager?
Please let us know with a comment and be featured in a future blog post!