Wealth management is about securing and growing your financial future. In this guide, we’ll look at what types of wealth management services you might benefit from and how they work, so you can get an idea of whether it’s a solution that might suit you and your financial circumstances and goals.
In our experience, we find most people benefit from wealth management services. Wealth managers offer tailored plans and specialist advice for those who want to grow and safeguard their assets. They assist with investment strategies, look at ways to lawfully and ethically minimise tax liabilities, work with clients on effective estate planning strategies and offer many other tailored financial services. To determine whether you would benefit from the services a professional wealth manager offers, consider your personal financial goals and how confident you are about choosing investments and strategies to grow and secure your finances for the future. You should also discuss your objectives with your loved ones and decide and the best ways to go about achieving them together. If you’re able to, calculate the time you would need to dedicate to managing your wealth yourself. Evaluating all these steps will enable you to decide whether professional wealth advice will be useful for you.
The wealth management services that tend to be used by most people are investment management, tax planning, retirement planning, estate planning and insurance and risk management. Here, we look at each of these in a little more detail.
Investment management involves overseeing an investment portfolio or a collection of assets. This process includes buying and selling assets, formulating investment strategies, crafting a tax plan, and managing the allocation of assets. It may also include financial tasks such as banking and budgeting. The term ‘investment management’ typically refers to the management of assets in a portfolio, trading them to attain set investment objectives. It is also commonly known as wealth management, portfolio management or money management.
Tax planning is designed to ensure you are minimising your tax responsibilities fairly, lawfully and ethically. With so many taxes that need to be considered – income tax, National Insurance (NI), Capital Gains Tax (CGT), dividend tax, Value Added Tax (VAT), Corporation Tax, Inheritance Tax (IHT) and more – it can feel daunting navigating tax planning. The UK has one of the world’s longest tax codes which is chiefly the reason it seems so complex. However, it can be comparatively straightforward if you know what you’re doing. A wealth management professional can come in very useful here if you don’t feel comfortable handling tax planning yourself. Their expertise can take a weight off your mind, knowing you aren’t paying unnecessary taxes but that you are paying those that you are legally bound to.
The earlier you plan for your retirement, the better. This is because the sooner you start making provisions, the longer your money has to grow. With that in mind, if you haven’t begun planning early on, it’s never too late to start. Every penny you save now can be put to good use so you can benefit from it in later life. Some strategic investing could help you get the most from your retirement at whatever point you start making plans. Retirement planning services can help you ascertain how much you are going to need for a comfortable retirement, help you to prioritise your financial goals and select the most suitable retirement plan for you.
Estate planning is the process of creating a plan so your wishes on how you would like your estate to be managed when you pass away are clear, making things just that bit easier for your loved ones. Estate planning services include guidance on writing a will and ensuring executors, family and friends know the details. A professional estate planning adviser will explain how to minimise IHT, including guidance on the legalities around any cash gifts you plan to give. Your wealth manager will also talk to you about any donations you would like to make to causes that mean a lot to you.
If you are considering financial protection and want to ensure you’re not over or under-insured, it’s important to remember that there is always an element of risk. Nonetheless, some insurance policies can provide you with peace of mind, and that can be invaluable. Typically, a wealth specialist will look at life cover, providing a lump sum to your dependents if you pass away. They’ll guide you on critical illness cover, for if you can’t work for medical reasons. And they’ll talk to you about income protection, which offers a regular payment if you are unable to work due to illness or accident.
Wealth planning centres around your life goals. It involves a holistic approach and comprehensive planning. A financial planner will look at their client’s financial affairs as a whole, at any concerns, at their lifestyle priorities and at their short, mid and long-term objectives. Financial advice, on the other hand, focuses more on a particular financial situation, and is designed to provide the most suitable solution for a specific financial matter.
Personalised wealth management is typically a way to manage clients’ assets centred around their individual needs and goals. It takes various factors into account, including lifestyle necessities, cash flow needs, risk tolerance, and long-term objectives. A good personalised wealth management plan will incorporate a blend of investment consulting and planning services. Personalisation means you benefit from a more focused approach, greater flexibility and more comprehensive solutions. Personalised wealth management is the way forward. As the working relationship grows, wealth managers can understand their clients better, including their attitude to risk and gathering other data along the way. This means solutions and plans can be refined for even greater results.
Comprehensive wealth management services can help grow, safeguard and transfer wealth across generations. Services span a wide spectrum, including investment management and estate planning, tailored to address diverse client needs and objectives. By offering specialist guidance and personalised wealth planning, management and preservation strategies, wealth managers can help their clients achieve their financial goals and secure their legacy.
Wealth management is about so much more than simply accumulating money. It is there to strategically plan and safeguard your financial future to accomplish long-term success. Not only is it important to have a strategic plan to help you achieve your long-term financial goals, it is absolutely critical that the plan is regularly assessed and adapted as needed – whether that’s due to market changes or your evolving life stages and needs. A good wealth management specialist will help you work towards your goals, making necessary adjustments accordingly.
There are countless benefits to be had from managing your wealth effectively.
Benefits of holistic financial planning include:
Using a reputable, experienced wealth manager means you can:
Working with a wealth management professional can bring you peace of mind:
Wealth management is a tailored blend of financial services designed to manage and grow an individual's wealth.
Yes, it is prudent to have a strategy that helps you manage your assets and achieve your financial goals.
Many wealth management firms offer an informal initial consultation to establish your current financial situation and your goals. This meeting gives you the opportunity to see if you would like to work with the wealth manager and enables them to establish what you are looking to achieve.
We have a variety of wealth management resources available:
If you can’t find what you’re looking for or would prefer to discuss your wealth management plan in more detail, contact our team of advisers today.
TAXATION ADVICE AND ESTATE PLANNING ARE NOT REGULATED BY THE FINANCIAL CONDUCT AUTHORITY.
THE VALUE OF INVESTMENTS AND INCOME FROM THEM CAN FALL AS WELL AS RISE, AND YOU MAY NOT GET BACK THE AMOUNT ORIGINALLY INVESTED.
