Money means different things to different people. Each of us has different dreams.
You may want to achieve or maintain financial freedom so that you never have to work again – even if you plan on working the rest of your life. You may want to make a high quality education possible for your children or grandchildren. You may want to provide the seed capital that will give your children or grandchildren a great start in life, whether that’s with a home or a business. You may dream of a holiday home on the beach or abroad. Or you may have achieved tremendous success throughout your career and want to leave behind an enduring legacy that will enable your favorite charity to continue its work.
Whatever your dreams are, you need a framework for making wise decisions about your money that will help enable you to achieve all that is important to you. The chances are good that you have a wide range of financial goals, as well as diverse financial challenges. Common sense tells us that such a broad range of issues requires a broad, comprehensive outlook. It’s for this reason that most affluent clients want their financial advisers to help them with more than just investments. They want real wealth management – a complete approach to addressing their entire financial lives.
As you’ve probably noticed, many financial firms these days say that they offer wealth management. The trouble is that many of these firms just provide investment management and offer a couple of extra services – such as education planning and estate planning – and call that wealth management. So the challenge for anyone who wants help addressing all their financial needs is finding a firm that provides true wealth management.
We define wealth management as a formula:
WM = IC + AP + RM
Investment consulting (IC) is the astute management of investments over time to help achieve financial goals. It requires financial advisers to understand deeply their clients’ most important challenges and then to design an investment plan that takes into account their time horizons and tolerance for risk and that describes an approach that will maximise the probability of them achieving their goals. It also requires financial advisers to monitor both their clients’ portfolios and their financial lives over time so that they can make adjustments to the investment plan as needed.
Advanced planning (AP) goes beyond investments to look at all the other aspects that are important to your financial life. We break it down into four parts: wealth preservation, wealth enhancement, wealth transfer and philanthropy. In our experience, very few financial advisers offer these services.
Relationship management (RM) is the final element. True wealth managers are focused on building relationships within three groups. The first and most obvious group is their clients. To address their clients’ needs effectively, they must foster solid, trusted relationships with them. Second, wealth managers must manage a network of financial professionals – experts they can call in to address specific client needs. Finally, wealth managers must be able to work effectively with their clients’ other professional advisers, such as their lawyers and accountants.
Our focus in this resource guide will be on the first element of wealth management – investment consulting. However, bear in mind that managing your investments is just one part of a comprehensive approach to your financial life. At the end of this guide, we’ll describe what you should expect from a true wealth manager so that you can make an informed decision when choosing with which financial professional to work.
AssuredGain is ready to offer comprehensive approach to your financial life. Please do call Narendar, Wealth Coach, NSE certified market professional at 9962439282(prefix 0 if calling outside Chennai) for free review of your current portfolio and offer comprehensive wealth management.