Private wealth management is a specialist service offered to high-net-worth individuals who want expert advice on maximising their assets, securing their financial future, estate planning and minimising their tax liability. Here’s what you need to know.
What Is Private Wealth Management?
Private wealth management is a very specialist type of financial advice designed for high-net-worth people, organisations and families. It takes standard financial planning to the next level and looks at how to maximise substantial assets and large investment portfolios.
Who Delivers Private Wealth Management Services?
These services are delivered by investment advisors and certified financial planners. They might work as part of financial services bodies or a London law firm. Often, even where city-based financial planners are independent or tied to investment companies, they will work with a London law firm on the legal aspects of wealth management for an integrated service.
What Sort of Things Do Advisors Do?
Private wealth management is highly individualised and will encompass various assets and management strategies covering stocks, real estate, bonds and alternative investments. The service will cover tax efficiency, philanthropy, wealth growth, income generation and risk mitigation. There will also be key areas such as retirement planning, estate planning and succession planning to ensure that wealth can transfer across the generations.
What Is the Link Between Private Wealth Management and the Law?
Many of the strategies put forward by the financial planner will need a deep understanding of legal frameworks. For example, tax efficiency planning might involve setting up trusts, offshore funds or even companies that work to maximise asset value and minimise tax liabilities. This kind of tax planning is very popular with high-net-worth individuals who pay for expert advice.
How Is This Service Paid For?
Wealth management providers usually charge a percentage on the portfolio that they manage for their clients as well as transaction fees. These services can be expensive, but their value will exceed the cost and ensure that the client’s wealth is safeguarded and grown in line with their expectations, with effective tax and succession planning assured.