A financial partner is a valuable resource for high-net-worth clients as they work to grow their wealth, manage their liability exposure, and devise strategies to pass on their legacy. But what defines the need for wealth management services?

Offering wealth management services strengthens customer relationships, elevates lifetime value, and provides a diversified revenue stream. Financial institutions that overlook this need risk losing customers to specialized financial entities.

Tax Planning

Wealth management services are designed to provide holistic financial advice that addresses the complex needs of high-net-worth clients. They consider your family situation, goals, current assets and liabilities, capacity for risk (investing-wise), and more to craft a personalized financial plan.

A wealth manager may help you minimize taxes by creating tax-efficient strategies as part of this service. They can use asset location and tax-loss harvesting to maximize the benefits of your investments.

Additionally, a wealth manager may offer estate/succession planning services to help you think through how to put your money to work for you even after you pass on. This is especially important if your estate could face hefty tax bills. They can work with your estate attorney to ensure your legacy isn’t lost to taxes.

Estate Planning

When an individual passes away, their estate must be divvied up, and a wealth management professional can help ensure that the client’s wishes are followed. This may involve establishing trusts, reducing estate taxes, and more.

Another part of estate planning involves protecting assets from lawsuits, government authorities, or other threats. A wealth management advisor can help protect their clients’ assets by moving them offshore or through other means.

As financial landscapes continue to evolve in complexity and dynamism, the ability of institutions to offer comprehensive services will become increasingly critical. Without these services, customers may seek advice from external financial professionals—which could divert business from the institution. With wealth management services, your institution can build loyalty and elevate lifetime value by becoming a trusted ally in your customer’s financial journeys.

Investment Management

Wealth management services can help you plan and execute your investments. This includes setting up a portfolio that suits your risk tolerance and financial goals and handling bookkeeping and other day-to-day investment activities.

For example, if you’re saving for retirement and have a moderate risk tolerance, your advisor might recommend a portfolio that balances stocks with bonds. They can also advise on charitable giving, helping you take advantage of tax benefits and make the most impact with your donation.

Competent investment management provides financial security for Americans, fuels businesses and the economy, and allows individuals to achieve their financial goals. With a steady stream of innovations, the industry continues to evolve quickly.

Insurance

Many wealth management services offer insurance sales, and they can be an essential part of a client’s financial portfolio. These services can help clients navigate wealth, protect their assets, and achieve financial security.

Most companies seek comprehensive services beyond investment management and financial planning, such as family office services, philanthropic strategies, and global investment opportunities. They rely on advisors with expertise in these unique areas to provide insight and access.

The pandemic has allowed insurers to show their purpose and commitment by offering relevant solutions to consumers eager to feel normal again. Insurers can leverage this moment by bringing new protections to market, demonstrating true humanity through their communications and customer interactions.

Retirement Planning

Wealth management services can help you determine how much you need to save and invest to meet your retirement goals. They can also help you navigate the complex world of retirement options and make sense of IRAs, 401(k)s, Social Security, and other government-sponsored plans.

They can also help you set up an automatic transfer from your checking account to your investments so that you don’t accidentally spend money you have earmarked for the future. They can even help you create an emergency savings fund and recommend strategies for minimizing debt and taxes in retirement.

As you can see, navigating the complex world of wealth requires a lot of expertise. That’s why many people seek out the help of a wealth manager.