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Wealth management is the process of helping individuals and families manage their financial assets throughout their life cycles. Wealth managers are financial advisors who specialise in managing your assets by providing financial advice such as managing your investment portfolio and insurance needs, providing estate planning advice, assisting you with your financial plan, and more. Wealth management services will typically incorporate both financial planning and investment management into their service offerings.
Here’s what you need to know about selecting a wealth management service.
Know your investment needs and wants
One of the most important things you can do before selecting a wealth management service is to understand your investment needs and wants. You can do this by asking yourself a few questions.
First, how much do you currently have to invest? What is your risk tolerance? How soon do you plan on needing this money? Answering these key questions will help you determine if you want to select an advisor who focuses on financial planning, investment management, or a combination of both.
If you are looking for a financial advisor who focuses on financial planning, you will likely have a more in-depth discussion about your overall financial situation. This can include a review of your current financial situation, financial goals and current financial situation.
If you are looking for investment management, an investment management service will likely have a more limited discussion about your overall financial situation.
Don’t forget the importance of research and due diligence
Once you have an idea of what type of wealth management service you are interested in, you need to do your due diligence to make sure you are selecting the right one. You can do this by researching investment performance, the track record of the advisors, and any malpractice or regulatory issues that might be on record.
Additionally, you will want to make sure your advisor has a strong track record. You can do this by looking at the overall performance of their investment management services. Investment management services have been around for about 20 years, before which, financial advisors mainly focused on financial planning. A track record of at least 10 years should give you a good understanding of their capabilities
Finding The Right Fit For You
One of the most important things to keep in mind when you are selecting a wealth management service is that there is no ‘one size fits all’ solution. It is important to find a service that will work best for you. While some of these are broad categories, each category has different subcategories with different services.
For example, hybrid advisors are different from financial planning firms. There are many different types of wealth management services. The most common services are financial planning firms, hybrid advisors and investment management firms.
Financial Planning Firms – Financial planning firms focus mainly on financial planning. They will typically help you with things like creating a financial plan and budget, taxes, insurance and net worth calculation. They may also help you with your investment portfolio, but this is not their main focus.
Hybrid Advisors – Hybrid advisors are a combination of financial planning firms and investment management firms. They will typically help you with your financial plan as well as your investment portfolio.
Investment Management Firms – Investment management firms focus mainly on managing your investment portfolio. They will typically work with you to identify where you want your money to be invested and then manage that portfolio for you.
They will also typically make recommendations on when to buy and sell securities within your portfolio.
When it comes to your personal finances, there is no one-size-fits-all solution. Everyone has different needs and wants at different points in their lives. This is why so many people are looking for customised services when it comes to wealth management. Finding a wealth manager is just one half of it. You would also need to keep a track of your investments, and when you become adept at investing, put your money in the instruments of your choice. KFintech’s KPRISM platform can help you keep a track of your portfolio and manage your investments safely. Learn more about it here.
