Beginner's Guide To Wealth Management | Wealth Manager Cardiff (2024)

Wealth Management is the process of enhancing your financial situation to meet your future life goals. A Wealth Management financial adviser devises a bespoke investment strategy using a full range of financial services and products to achieve these goals, after consulting with a client to fully understand their requirements and priorities.

Holistic Wealth Management

• Savings & Investments – defining what you are saving for, how much you will need, what period of time is available, your risk appetite, and constructing a portfolio to meet your goals.

• Protection – developing a life insurance strategy, ensuring you have adequate medical insurance, protection against loss of personal assets and income, and professional liability if needed.

• Retirement Planning – ensuring you have enough money to live on plus cover any large expenditures (such as grandchildren’s college fees or care home costs) during retirement.

• Cash – making sure you have enough reserves or access to credit to deal with emergencies.

• Business – putting a succession plan in place, arranging an optimal transfer of business interests, an exit strategy and minimising tax liabilities.

• Estate Planning – creating and executing a plan to reduce inheritance tax and maximising distribution of your assets to chosen beneficiaries.

Is Wealth Management for Me?

Wealth Management requires consistency and attention to detail, combined with regular review and adjustment over your life stages.

Some wealth managers require steep account minimums of several million pounds in investments and investable assets, whilst others work with middle-income earners to help you build a robust financial plan or reach a specific goal.

Having the right Investment Strategies can make a significant difference to your returns.

Download this free guide to help you understand what asset allocation is and the impact this strategy can have on the growth of your investments.

Types of Wealth Management Services

The services offered vary by provider. You may be offered unlimited access to a dedicated advisor who is a certified financial planner for an annual fee, which varies depending on the complexity of your financial needs. The service may include investment management, which could be either:

• A Discretionary Service is where the wealth manager manages your portfolio of investments in line with the mandate agreed with you. This means they will manage your portfolio without checking with you before making alterations.

• An Advisory Service is where the wealth manager will make recommendations based on your attitude to risk and circ*mstances, but you need to agree before any changes are made to your portfolio.

How to get the most from your Wealth Manager

• Provide Up-To-Date Information

  Accurate, detailed information is vital to enable your wealth manager to provide the best service, so keep them informed of your latest personal situation, including savings and investments, income and financial commitments, and if your circ*mstances, investment objectives or risk appetite changes.

• Understand Their Service

  Wealth managers offer a range of services – a portfolio tailored to your individual needs, a service where customers with similar risk appetites and investment objectives are grouped and managed together, or something different. Confirm your understanding of the service agreed, how fees are calculated (such as an annual management charge or a percentage of portfolio value), and when important information will be reported to you (such as details of your holdings and their performance).

• Explain Your Objectives

  State your investment objectives clearly, to ensure your portfolio matches your goals and circ*mstances. For example, do you want you to generate a regular income or achieve a certain growth value? Over how long? What risk level are you happy with? Do you have any geographical or ethical investment restrictions? When will you need to access part or all of your money?

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