What is wealth management and why do you need a wealth management adviser?

The first thing to mention is that you don’t necessarily have to be ‘wealthy’ to benefit from the services of a wealth manager. There is of course a disconnect in what some people consider to be a wealthy sum, and this has changed over time, particularly as the cost of living goes up. Historically, many people aspired to be millionaires and by all accounts, many still do, but a millionaire today will not enjoy the same lifestyle that a millionaire twenty years ago did.

The old saying goes that it ‘takes money to make money’ and often, that’s true. 

These days, you might be looking at having more like multi-millions to be considered wealthy, but for more than a few people, arriving at this figure is something that can only be achieved through the support of a wealth manager in the first place. There are investments and tax liabilities to consider and managing these efficiently will make all the difference as you strive towards achieving your financial targets.

Even if you are not ‘wealthy’ just yet, you can still benefit from the services of a wealth management adviser and it might still be wise to begin exploring what wealth management could do for you.

Here are the top three indications that people should start seeking wealth management advice:

Your pension contributions are nearing their limit

You may have accumulated a significant amount at a young age, or you could be nearing the limit of your lifetime pension contribution allowance – many people are heading towards this without realising and without even adding further contributions, due to the effects of cumulative interest. If you’re nearing your pension limit, you could benefit from advice regarding alternative savings routes, which your wealth manager will be able to explain.

Investment opportunities are passing you by

To maximise your returns, it’s important to have a diverse portfolio that looks at all investment opportunities available to you.  The norm is often to stick with what you know and focus on the opportunities close by, often in the form of stocks and bonds, but a wealth manager will be able to look at the bigger picture and explain why spreading your investment across hedge funds, real estate and commodities, for example, might reap greater rewards.

You are continually faced with a high tax bill

Managing your wealth effectively is unavoidable without thoroughly examining your tax situation. Tax planning as an aspect of wealth management will look at strategies to minimise the income, inheritance and capital gains tax you face paying.

We provide wealth management support across West Sussex, Surrey and beyond. To find out more, or to book an appointment to speak to a wealth management adviser, please get in touch.

This article does not constitute financial advice and should not be construed as such.