Top 4 Benefits to having a Wealth Manager
Top 4 Benefits to having a Wealth Manager
You probably don’t realize this but you are making big decisions, on your own, that are impacting your financial situation. You might be thinking, "well I go to the bank and have an investment advisor, I use a real estate agent to buy the right property and have an insurance agent to get me coverage in case the worst happens." Although all of these services are essential, they are specialized and that means none of these individuals who are providing you the service, work with one another. You might be asking, why is that important? Whether deciding to buy an additional property, investing more into the market or using money to get additional insurance coverage, all of these decisions impact your money. These are the things that will make a significant difference on your net worth over time and depending on which of these separate professionals you ask, you will most likely get different (biased) advice.
This raises the question, who is helping you to make the big financial decisions? The big decisions which include; whether to buy an additional property or to invest more into your RRSP? Buy more insurance or find a different way to structure your money for the next generation. In other words, who is helping to throw the football to the right professional at the right time. Just like a quarterback in the NFL, a Wealth Advisor acts as this person connecting all of these financial services together and making sure they are used appropriately.
A Wealth Manager is someone who uses a full “holistic” approach when looking at someone’s money. This means they look at all areas of financial services. Their main profession is to help you build and preserve your wealth while being flexible with your life goals.
Here are 4 ways a wealth advisor makes a big impact on growing your wealth.
1. More then an Investment Professional
The wealth advisor is not to be confused with solely an investment professional. Although interested in how investments are structured and how they perform, a wealth advisor is much more. Wealth advisors look at investments beyond the regular banking Investment accounts (ie an investment Fund invested into an RRSP) and take into account all investments, including real estate holdings, Private Equity, ownership of businesses etc. They work with clients to ensure their clients are properly diversified and have general knowledge about different asset investments beyond traditional stock, bond portfolios to guide investment decisions.
2. The Quarterback of your Wealth Team
An important part of investing is not solely what to invest in but how (via personal accounts, trusts, holding companies). Wealth Advisors work with accountants and legal professionals to ensure investments are structured properly with the use of proper trusts in place, holding companies, etc to bring tax liabilities and legal risks to a minimum. Don’t be surprised to see Wealth advisors bring tax strategies to help reduce your tax liability that are often overlooked by your accountant.
3. Reviewing and Coaching Regularly
One of the most important and often overlooked component of having a Wealth Advisor is the coaching component. A relationship between a client and Wealth advisor must be strong and ongoing as client’s positions continually change and new priorities arise. The Wealth Advisor will regularly meet with clients to look at progress towards financial goals and to discuss new strategies that will suit a client’s changing needs.
4. Unbiased Advice
More often than not, different professionals are compensated on the size of the investment, product or transaction they are offering. The realtor may be interested in selling you the most expensive property you can afford, the investment manager will also hope to attract as much money to his/her fund and the insurance agents will have similar aspirations in selling the most insurance possible. This goes to question, who’s advice is unbiased and can be trusted? The Wealth advisor will look objectively at the goals and objectives of each client and implement strategies and solutions that take into account all the services being offered, making sure the right action is being taken. Most are compensated by performance and some even charge a fee for service making sure interests of the client and advisor are the same.
Take advantage of the huge benefits offered by a wealth advisor and get ready to score your way to financial freedom. Ready, Set, Hut!
Kind regards,
The Wise Investor