Every investor may need a certain type of wealth management to get ready for retirement or have a relatively comfortable financial future. However, if you are a high net worth investor, you may find the personal wealth management suitable for you.
Who is a high net worth investor？
A high net worth investor is the individual who owns the liquid financial assets with a minimum worth of $1 million. People with the liquid financial assets less than $1 million but more than $100,000 are regarded as sub-high net worth investors or affluent investors. If your investment asset is over $30 million, you will be viewed as an ultra high net worth investor. According to the Securities and Exchange Commission (SEC), all the individuals with liquid assets over $1million (primary residence excluded) will be referred to as accredited investors. If you belong to this category, you may particularly need the personal wealth management to help sustain or enhance your wealth.
The advantages of personal wealth management
- Wealth growth
The primary purpose of the personal wealth management is to help you create new income or increase your wealth. The professional wealth managers can provide you with a variety of investment techniques to help your wealth grow. For example, the wealth managers may help you invest in private equity funds that can hardly be accessible to less wealthy individuals.
- Asset protection
Personal wealth management will protect your assets. You will have a clear idea of your current financial situation. Sometimes wealthy clients will be sued for various reasons, and wealth managers will try to help them handle the lawsuit to protect the assets. In addition, the wealth managers will also give you suggestions on how to manage donations and set up trusts or foundations.
- Tax management
Many clients desire to choose the most efficient tax plan that can save them money while still complying with the authorities. The professional wealth managers understand the tax regulations well, and they can help clients choose the most suitable tax combination.
The disadvantages of personal wealth management
If you do not trust your wealth manager but still let him work for you, the distrust may lead to a financial disaster. Not every wealth manager can have a harmonious relationship with you. Therefore, do some research in advance and try to find a wealth manager that can meet your specific need.
Besides, personal wealth management also involves risks. You are still likely to lose money. While you are choosing to take the personal wealth management, make sure you check out the company or the manager’s reputation. Contact other clients (either past or present) with similar financial situations to see if the manager is reliable and familiar with your net worth.