As the name itself implies, private wealth management is not something that the majority of people will ever need. This is a service that is suited to people who have accumulated the sort of assets that entitle them to be described as comfortable.
It is designed to help people who have a considerable amount both in income and savings and thus are often liable for high taxation. It is often about helping such people to maximise the money that they have to retire on once they are finished working and paying tax.
So what are the assets that you need to have for a private wealth manager to be something worth looking into?
Income
The first asset to look at is income from employment. Private wealth management is usually for people whose income is well within the upper bracket – e.g., a six-figure sum per annum in earnings. However, it is not quite as simple as saying that you need to be making that much a year for this service to be of use to you.
A big part of wealth management is about long-term planning. Some people will be in stable careers with excellent eventual prospects for earning very high incomes, even if they are not doing so right now.
Talking with a financial advisor in Chester or wherever they live at that early stage of their career can ensure that they are prepared for when the big money does start to roll in. Therefore, wealth management is useful to people with high incomes both now and in the future.
Property
Most people who seek out a wealth manager will have property assets that they are earning regular money from. The property in question might be buy-to-let housing or it could be commercial property such as office spaces.
People in that situation can be liable for taxes on this income that can cut pretty severely into it. Therefore, an expert wealth manager will be useful, because he or she should possess detailed knowledge of UK tax law and will know of legal ways to reduce the amount that has to be paid out in taxes.
Property is a very popular form of investment. It is certainly not one that is entirely free of risk – no investment can offer that – but it is less risky than other types for people who are not financial experts.
Savings
Aside from a healthy income from employment, most people who seek out wealth management also have considerable savings. Indeed, some such companies set minimum limits on the savings that you must have before they will accept you as a client.
Private banks tend to set those limits the highest – often as high as one million pounds. However, when it comes to specialist wealth managers, the figure is not usually quite so steep. It may be in the region of £20,000, as it still needs to be the sort of sum that can potentially be invested to produce significant financial returns for the client.
Other assets
This can mean anything from stocks and shares that you own to things like jewellery that can be liquidated for cash if need be. While a big part of wealth management is identifying potential investments that can increase your financial assets, existing investments can always be deployed towards that end too.
A good wealth manager will look at all of your current assets combined to determine how he or she can help you to manage and grow your money in the future.
Contact an expert in wealth management if you want more detailed information about the services offered.
