What Is Private Wealth Management?

Unlike trusts, corporations or funds, private wealth management is a method of investment advising that combines aggregated financial services, such as portfolio management and financial planning. Private wealth management allows individuals to enhance their financial situation and address issues that may be barring them from reaching their goals. If you are interested in private wealth management, turn to Harvest Wealth Partners. Our team is here to help you explore your investment options. Contact us to discuss the potential benefits. 

Understanding the Purpose of Private Wealth Management

Often, wealthy individuals do not have the time, energy or skills necessary to handle their own finances. In order to manage their wealth, they consult advisors that are experienced in working with high-net-worth individuals (HNWI). Many HNWIs have specialized financial needs that must be handled with higher diligence and active management. Furthermore, HNWIs frequently need holistic investment management as provided by a financial advisor. Common issues that HNWIs face include estate planning, income taxes and certain legal matters that require deeper attention and expertise than a traditional advisor is able to provide.  

What Are the Types of Private Wealth Managers?

There are several different types of private wealth managers to select from depending on your specific needs. Banks, major brokerage firms, independent financial advisors, licensed portfolio managers that concentrate on HNWIs and family offices can all offer private wealth management services. Many private wealth management providers are divisions of bigger financial institutions that are committed to offering clients individualized attention. Their primary goal is to manage and increase their clients’ assets so that they can support future generations. 

These organizations frequently offer suggestions on a wide range of investments, including fixed-income, cash, equities and alternative investments. They can generate a portfolio of investments that accommodates the investor’s risk tolerance while still providing room for growth potential. 

HNWIs might wish to think about starting a family office, which offers a broader variety of services specifically for HNWIs. For high-net-worth individuals, a family office provides comprehensive financial solutions, including investment management and guidance for charitable giving. 

How Does Private Wealth Management Work?

The majority of private wealth management companies offer fee-based services. The fee includes a percentage of the assets they manage. HNWIs might think that a fee-based financial advisor is less likely to be in conflict of interest than a conventional commission-based advisor. 

Commissioned advisors may steer investors to back-end and front-end load mutual funds that impose high commission fees while frequently providing no performance advantage over a no-load fund. 

As technology continues to develop, more larger financial advising firms now offer online services at a lower cost. Even though plenty of investors have gravitated towards these kinds of services, HNWIs still prefer personalized guidance regarding their finances, even if they involve higher costs. 

Contact Us for an Appointment

Private wealth management makes a bright future possible, and Harvest Wealth Partners is ready to help you pursue your goals. Contact our firm today to schedule an appointment with a financial advisor. 

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which strategies or investments may be suitable for you, consult the appropriate qualified professional prior to making a decision.

This material was prepared by NUVEW Web Solutions.