Wealth Management Advisory Information – Controlling Your Money

By Charlotte Miller

Wealth management advisory provides an array of services tailored specifically for high-net-worth (HNW) individuals and their families, such as investments, financial planning services, tax services, legal support services and estate planning.

Personalized Wealth Management

Personalized wealth management strategies provide an efficient means of overseeing your financial assets. Such services can include investment consulting and planning; tax and estate planning assistance; finding efficiencies to lower risk exposure; as well as risk reduction assistance – helping you meet financial goals more quickly while creating long-term success.

If a client is transitioning into a new career or experiencing life changes, these professionals use their knowledge to offer investment solutions tailored specifically to your new requirements and keep you loyal to the firm, itself; building a relationship.

Your investments must all be supported by research and data. That is why many firms are turning to new technologies or professional wealth management advisory services in order to provide personalized investment advice and advise their clients accordingly. By adopting such technology solutions, firms are finding they can increase client engagement, retention, quality of services provided, as well as expand their businesses.

AI and machine learning (ML), big data analytics, and omnichannel communications are just some of the latest innovations available to businesses today. AI/ML can automate manual processes, freeing up more time to spend with clients; as well as identify patterns in data for predictions or recommendations to make. Finally, these technologies can also improve customer service by speeding up decision making process speed and accuracy.

Investment Management

Investment management refers to the practice of overseeing client finances to help achieve specific goals, such as asset allocation, investment selection, tax management and retirement planning. Investment managers offer their services via wealth managers, private banks, brokerage firms or other financial institutions – offering comprehensive solutions combining investing, tax services and advisory capabilities.

They often offer more comprehensive services than advisors who only focus on one element of financial planning such as investing or financial planning alone. Investment in mutual funds can be an efficient and rewarding way to expand your wealth, but not all mutual funds are created equal. Some are designed as income investments and pay monthly dividends to shareholders.

These so-called dividend-paying funds provide low risk – according to this link, anyways – but also reliable income for those looking for diversification in their portfolio with low-risk, reliable investments while offering attractive tax advantages, which further improve return on investment. It is important, however, to understand all associated risks with such funds before diving in – regulatory issues may result in redemption fees or capital gains taxes being levied against you when investing.

Tax Planning

Tax planning is an integral component of wealth management. Given the complexities associated with US tax law, advisors need to find effective strategies that protect and build their clients’ wealth over multiple generations. As such, some advisors specialize in offering tax advice exclusively.

However, due to taxes being so closely connected with finance and investing, compliance departments often advise financial advisors not to give tax advice altogether. This advice does not suggest tax advice is illegal or improper; rather it serves as a precaution against liability issues in case one of their clients follows their advisor’s advice and ends up paying more taxes than they otherwise would have.

Therefore, advisors must communicate clearly with their clients regarding the extent of their tax expertise. Advisors should be transparent when conducting analyses and projections about strategies, as well as when offering tax consequences advice or consulting with tax professionals for more in-depth tax guidance.

To gain more information about the tax planning services provided by private wealth advisory firms, you can utilize tools like Barron’s 2022 Top 100 RIA Firms ranking and Investment Advisor Representative Lookup tool on FINRA website. In addition, SoFi Invest provides guidance when opening and funding accounts on our online stock trading platform – we even help open accounts!

Estate Planning

Establishing an estate plan is an integral step for anyone, no matter their wealth level. An estate plan outlines your wishes regarding how your assets and properties will be distributed upon death or incapacity and who will manage financial accounts/investments/guardianship of minor children you may have, along with detailing any end-of-life wishes such as whether to remain on life support or not.

Most private wealth advisors possess degrees in finance, business, accounting, economics or another related discipline. They must possess extensive knowledge in various investment strategies and market data sets as well as possess excellent interpersonal skills that allow them to develop strong client relationships while working closely with professionals like investment bankers and portfolio managers.

Financial advisors and wealth managers both can assist with making smart money decisions, but their services vary according to client type and need. It is worth interviewing multiple advisors to identify one that meets your specific needs and goals best; also be sure to understand how an advisor charges commissions or flat fees, or use online platforms like SoFi Invest that provide professional investment guidance without charging you an advisory fee.