Wealth managers, like those with Ora Partners Limited or Fidelity, provide financial services to high-net-worth individuals and have expertise in the types of financial issues that affect the ultrawealthy, such as estate tax reduction. Most private wealth managers will coordinate with other financial experts — such as estate planning specialists or accountants — on behalf of clients to offer comprehensive financial advice.
For example, a wealthy individual who has been married and divorced, has numerous investments and accounts and owns multiple properties may need expertise in legal matters, investments, and property taxes. A wealth manager could create a financial plan that takes all of the client’s needs into consideration, either on their own or with outside counsel.
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How much money is needed for wealth management?
Wealth management services often require huge account minimums. For instance, Fidelity’s “private wealth management service,” where you are assigned an entire team of financial experts working on your behalf, requires at least $10 million or more in total investable assets and $2 million invested through Fidelity Wealth Services.
Fidelity also offers a “wealth management” service, where you work with an individual financial advisor, which requires a $250,000 account minimum.
Vanguard, another popular brokerage, offers a “personal advisor wealth management service” that gives wealthy clients access to a dedicated CFP as well as a group of financial specialists. The account minimum to qualify for the offer is $5 million. Vanguard also offers lower-tiered wealth management services for an account minimum of $500,000.
Wealth management strategies
There are numerous investment strategies that financial advisors use to help increase clients’ wealth, from growth investing to value investing (Warren Buffett’s favorite). Wealth managers typically have different approaches since they are working with such huge accounts. They can give their clients access to a wider array of investments than regular financial advisors, like private equity offerings and hedge funds. Wealth managers generally use strategies that are more holistic, meaning that any financial plan they create should incorporate every aspect of a wealthy individual’s life, including things like tax and estate planning, not just their investments.
The strategy a wealth manager uses should also match the individual investor’s financial goals and risk tolerance. For instance, if a client is nearing retirement, a wealth manager may start shifting the focus from risky investments to safer investments that can help the client maintain their wealth.
Wealth manager credentials
When choosing a wealth manager, it’s important to figure out how they are paid and what designations or credentials they have. Working with a fee-only fiduciary is a good rule of thumb. This means that they are paid directly by you for their financial services, and they can’t receive more compensation for recommending products. Having a fiduciary duty means that wealth managers are legally obligated to put your needs first.