Taking the time to review your financial plan is a real investment in the health of your wealth – and your peace of mind – so seize the opportunity this summer.
There are many ways that a wealth manager can improve your financial planning and investment portfolio, writes Lee Dooley of Tilney Bestinves.
Many people seek the help of a professional wealth manager because they have a particular financial or lifestyle goal in mind. These goals could range from saving for a child’s education fees to managing your estate for future generations or putting money aside for a comfortable retirement.
Other people have particularly complex financial needs, or simply don’t have the time to manage their own finances effectively. A good wealth manager will help by assessing your current situation and creating a bespoke financial strategy to help you make the most of your money and achieve your desired lifestyle in the future.
If any of this sounds familiar, then you may be wondering about how the process works and the ways you stand to benefit. You will first be assigned your own dedicated wealth manager, who will get to know your financial situation and can offer personalised advice going forward. Your first meeting will include an in-depth discussion of your overall goals and attitude towards investments, as well as a review of your current financial position. At this point you will need to choose an appropriate fee structure, but bear in mind that each firm offers different options for payment. Once this is agreed, your wealth manager can then begin building a bespoke financial strategy that will put your money to work, usually while utilising any available tax-efficient wrappers and selecting a diversified range of investments that are suitable for your needs.
Your financial goals or circumstances are likely to change over time, so you should then look to meet your wealth manager at least once a year to review your progress and ensure your portfolio remains suitable over the long term. For this reason it may be advisable to choose a firm with a nationwide presence that can offer you the services of the same individual wealth manager throughout your entire time as a client.
The most immediate benefit of a wealth management service is the experience and expertise of a qualified financial professional.
Look for those companies offering the services of Chartered Wealth Managers or Chartered Financial Planners, as you can be sure that these experts have completed extensive training in topics such as pensions, taxation and trusts. They will have also been tested on their ability to apply this technical knowledge for the practical benefit of their clients in a wide range of scenarios.
Certain companies choose a two-pronged approach to wealth management, where you will also benefit from the services of a dedicated investment manager. Investment managers specialise in portfolio construction and ongoing investment management, and their input can be invaluable when it comes to keeping your investments aligned with your financial goals and requirements. Not all wealth managers will offer this approach, which could lead to compromises in both areas, so it is worth taking your time and reviewing your options before committing to a service.
Whether or not you choose a wealth manager that offers the combined expertise of two specialists, you will be given several options for the management of your investments as part of your wider financial strategy. For example, investors who feel confident investing without the advice of a professional can take advantage of execution-only online services which allow you to make all your own decisions.
If you would like to make your own decisions but would prefer bespoke advice and support from an investment professional, you may be more suited to an investment advisory service. On the other hand, discretionary management services give your dedicated investment manager full responsibility for the ongoing management of your portfolio in line with your pre-agreed objectives. You will meet regularly to review your progress and assess any changes going forward, safe in the knowledge that your money is being looked after by a trained professional with years of experience.
Every firm will take a slightly different approach when it comes to managing your money, so there is no guarantee that all of these features and benefits will be available from any given wealth manager. It is important to consider your individual needs before making a decision, and most wealth managers will also offer you a free no-obligation consultation to discuss your options.
If you are interested in hearing more about how a wealth manager can help you have financial piece of mind then the author of this piece, Tilney BestInvest, is offering readers a free consultation. Simply click below to book in a time for them to contact you.