Wealth Management is the process of enhancing your financial situation to meet your future life goals. A Wealth Management Adviser devises a bespoke strategy using a full range of financial services and products to achieve these goals, after consulting with a client to fully understand their requirements and priorities.

Holistic Wealth Management

If you’re currently managing your own investments, you might need an expert to answer the ‘big picture’ questions, which is where a Wealth Management Adviser can be a valuable resource.

Wealth management focuses holistically on all components of financial health, not just investing, to achieve your goals. This includes:

  • Savings & Investments – defining what you are saving for, how much you will need, what period of time is available, your risk appetite, and constructing a portfolio to meet your goals.

  • Protection – developing a life insurance strategy, ensuring you have adequate medical insurance, protection against loss of personal assets and income, and professional liability if needed.

  • Retirement – ensuring you have enough money to live on plus cover any large expenditures (such as grandchildren’s college fees or care home costs) during retirement.

  • Cash – making sure you have enough reserves or access to credit to deal with emergencies.

  • Business – putting a succession plan in place, arranging an optimal transfer of business interests, an exit strategy and minimising tax liabilities.

  • Estate Planning – creating and executing a plan to reduce inheritance tax and maximising distribution of your assets to chosen beneficiaries.

Wealth Management

Is Wealth Management for Me?

Wealth Management requires consistency and attention to detail, combined with regular review and adjustment over your life stages.

Wealth managers generally provide services for affluent clients, and have expertise in the types of financial questions that affect the wealthy, such as how to avoid estate tax.

They may bring in services as needed from different experts, such as a lawyer or an accountant, on your behalf.

Some wealth managers require steep account minimums of several million pounds in investments and investable assets, whilst others work with middle-income earners to help you build a robust financial plan or reach a specific goal.

Types of Wealth Management Services

A wealth manager is likely to coordinate all of your financial planning needs, including, for example, managing tax implications of business income and setting up charitable trusts.

Sometimes services can be bought on an “a la carte” basis, for example, if you solely need assistance with retirement income planning.

Wealth Diversity

The services offered vary by provider. You may be offered unlimited access to a dedicated advisor who is a certified financial planner for an annual fee, which varies depending on the complexity of your financial needs. The service may include investment management, which could be either:

  • A Discretionary Service is where the wealth manager manages your portfolio of investments in line with the mandate agreed with you. This means they will manage your portfolio without checking with you before making alterations.

  • An Advisory Service is where the wealth manager will make recommendations based on your attitude to risk and circumstances, but you need to agree before any changes are made to your portfolio.

In both cases, the adviser has an ongoing responsibility to ensure your investment portfolio remains suitable for your attitude to risk and investment objectives. This is different to transactional advice, where they are only responsible for the suitability of investments at the time advice is given.

Typical investments a Wealth Manager will discuss with you could include:

  • Cash and Stocks & Shares ISAs
  • Bonds
  • Gilts
  • Shares
  • Managed Funds
  • Property
  • Venture Capital
  • Collections (such as Art, Cars, Wine)

How to get the most from your Wealth Manager

You will probably encounter a mix of feelings and thoughts as you embark on this new life chapter. When preparing emotionally for retirement, remain optimistic, take responsibility and make the most of your circumstances.

Plan what you’re going to do with the free time you will have on your hands.

Be positive, go out and do things – believe that you still have a contribution to make.

Wealth Management - Ahead of Time

Feeling good about yourself, your achievements and your ability to manage new challenges is essential.

You could phase your retirement, retiring gradually after reducing days worked per week. This can ease the culture shock and provide time to acclimatise to a new life stage.

Or take up a part-time paid or unpaid role, such as consulting or board membership, to increase income and challenge your brain.

  • Provide Up-To-Date Information

    Accurate, detailed information is vital to enable your wealth manager to provide the best service, so keep them informed of your latest personal situation, including savings and investments, income and financial commitments, and if your circumstances, investment objectives or risk appetite changes.

  • Understand Their Service

    Wealth managers offer a range of services – a portfolio tailored to your individual needs, a service where customers with similar risk appetites and investment objectives are grouped and managed together, or something different. Confirm your understanding of the service agreed, how fees are calculated (such as an annual management charge or a percentage of portfolio value), and when important information will be reported to you (such as details of your holdings and their performance).

  • Explain Your Objectives

    State your investment objectives clearly, to ensure your portfolio matches your goals and circumstances. For example, do you want you to generate a regular income or achieve a certain growth value? Over how long? What risk level are you happy with? Do you have any geographical or ethical investment restrictions? When will you need to access part or all of your money?

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To speak to an experienced Cardiff-based Wealth Management Adviser contact Tony Thomas on 07585 592494 or tony@wealthmasters.co.uk

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