Wealth Management Firm

Using a wealth management firm to help plan, secure and grow an estate worth over five hundred thousand dollars in value is a logical decision for the wise money holder. Issues such taxes and investments have become so complex that making them all work for the customer's benefit has become the supreme challenge and mission of the wealth advisory firm. Interestingly enough, the makeup of financial management firms are varied with a one size fits all approach not embraced. Often, those firms with specific packaged programs to sell their clients may not have a staff that is varied in experience and expertise since the program is supposed to have the expertise. In those cases, a one size fits all approach is effective for those with smaller sized estates. Conversely, large moneyed estate owners need the resources of private banking experts, tax attorneys and investment working together to produce a financial symphony to which even Tiny Tim could have sung.

In many cases for the smaller estate owner, the client can use the resources of a bank to secure all the needed resources that otherwise might be given to a wealth management firm. Banks can offer their own financial management programs that will address most of the concerns of the average client. If the estate is relatively small, a personal banker can be introduced that will be the concierge to the rest of the bank's product offerings. Finding the legal help, the right investment counselor and perhaps even the right real estate advisor can be part of the job a personal banker can do for clients. In the case of the average moneyed consumer, this alternative approach to a wealth management firm can be appropriate.

For the bigger estates, the use of a wealth management firm is critical. Consider first the tax implications for such a person. The average Joe Schmo has taxes taken out by a human resources department and not much thought is really paid to ways to defer or lower them. The fortunate person who may be making ten thousand dollars or more a week needs tax shelters, tax deferments and strategies so that the entire paycheck is not subject to a forty percent rate. A top rated management firm will retain a resource person, perhaps even a tax attorney who can provide the most beneficial and legal ways to deal with such issues. Take heed however because Jesus warned those blessed with an abundance of riches. "Verily I say unto you, that a rich man shall hardly enter into the kingdom of heaven." (Matthew 19:23)

Consider also the incredible wisdom needed to direct someone in the area of investment strategies when that client possesses so many available financial assets. With investment houses and insurance companies falling like dominoes, only a person wholly devoted to the understanding of all the intricacies of investing could begin to advise someone with large caches of discretionary money. Many hanging out the shingle labeled "Wealth Manager Advisor" represent only a single company that provides for all the advisors' cookie cutter products. A single size fits mentality is great for socks and hats, but not for a client that owns three residences, has two children in Ivy League schools and wants to retire at fifty-two. Only a wealth management firm that can address all of a client's very personal and individual needs with seasoned financial pros is equipped for such a task.

The one exception that might qualify a lesser income (it's all relative, remember) family for the highly qualified skills of a wealth management firm is the couple who is going through a divorce. Sharing one very profitable plan that threatens to suddenly become one that is torn in half may not be the best thing for either party. Certain assets that are better left undivided and others that could immediately be liquidated are issues that a wealth management firm, in concert with all attorneys could work out. With a firm such as this sitting in a neutral position representing two clients they do not wish to lose, plenty of incentive is present for a win-win.

The big obvious here is the fact that a wealth management firm will not come cheaply. While it is not a hard and fast rule, financial advisors representing one company will probably work on a commission basis. In most cases, the cost of financial management products that are sold by an advisor will have the commissions included. A firm that helps manage a person's or estate's financial matters may work on a commission basis, an hourly basis or a combination of the two. Part of choosing such professionals should include the examination of the fee schedule. Make no assumptions and ask every question until the fog has lifted.

So a person is ready to choose a financial firm to manage his estate. He has asked attorneys, presidents of banks, the Chamber of Commerce and the Better Business Bureau for background information and references on the firm under consideration. All the reports come back with a positive spin so the appointment is made and an interview is scheduled. That's right; the client is going to interview the firm. When all parties are seated take stock in what's happening in the room. Is the client getting good, comfortable vibes from the staff or does it somehow feel like making a sale is the most important issue? Does the client truly feel that he can take strong and sometimes complicated advice from this group of people, or is there a sense of unease?

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