Clark Wealth Partners will take the time to understand your financial goals, risk tolerance, and investment horizon. Then they will create a comprehensive strategy to grow and protect your assets.
When selecting a wealth manager, look for credentials like the CERTIFIED FINANCIAL PLANNER (CFP) or Chartered Financial Analyst (CFA). Also, consider their experience and fee structure.
Investment Management
Wealth managers help investors grow their assets by assessing their risk tolerance, investment objectives and financial goals to create an investment plan. They then place the client’s money in a range of investments, such as mutual funds, stocks and bonds, to minimize risk and maximize returns. Depending on the client, this may include hedging, market-timing and asset allocation strategies.
A good wealth manager will also consider the broader implications of each investment decision, such as environmental, social and governance (ESG) factors. As a growing number of clients demand it, many wealth managers are incorporating ESG research and screening into their investment strategy.
For example, a client who owns a family-run business may want to hire a wealth manager to facilitate succession planning and reduce the tax burden associated with ownership transfers. A wealth manager would be able to assist with this by helping the company prepare for leadership transitions and establish trusts to protect the family’s legacy.
When it comes to protecting assets, a good wealth manager will look at all the potential risks, including litigation and regulatory issues, to help their clients preserve and transfer their wealth. They can also help limit the impact of a creditor judgment, which can arise from lawsuits resulting from malpractice claims, auto accidents or property-related incidents, contractual obligations or divorce settlements.
After decades spent pursuing asset growth, high-net-worth individuals often find their priorities shift to safeguarding and distributing assets as retirement approaches. A wealth manager can provide advice on how to make this transition in a way that maintains their financial security and the lifestyle they’ve built over the years.
When choosing a wealth manager, it’s important to understand the full range of services they offer and how they’ll charge for those services. For instance, some wealth management firms charge a flat fee for all of their services while others charge a percentage of a client’s assets under management (AUM). Regardless of the structure, you should always select a wealth manager with appropriate credentials and experience. Credentials like the CERTIFIED FINANCIAL PLANNER(r) or CFA(r) designations indicate that they have the necessary skills and knowledge to meet your needs.
Tax Strategies
Wealth managers can help you make the most of your investments by leveraging tax strategies to minimize your tax burden and maximize investment returns. They can also create investment strategies to meet your short- and long-term goals, ensuring that your assets are well-diversified across asset classes and that your portfolio is structured to fit your lifestyle. For example, if you’re saving for your grandchildren’s college educations, they can create a strategy to help you invest in educational trusts that can lower your taxes while helping you reach your financial goal.
A skilled wealth manager can also help you increase your income streams and protect your assets for long-term financial security. They can provide guidance on investing in low-cost passive mutual funds that offer diversification and low fees, as well as advise you on a strategy to reduce your tax rate by holding real estate investments or using tax-efficient structures like LLCs. They can also help you set a savings plan and develop strategies for achieving your retirement goals without depleting your hard-earned assets.
The services that a wealth manager offers are similar to those of a financial planner, but they typically focus on high-net-worth individuals and offer more comprehensive advice. While many financial professionals offer investment management, a wealth manager can provide a more holistic service by managing multiple aspects of your financial life and providing regular meetings to ensure that your strategy aligns with changing financial goals.
When choosing a wealth manager, it’s important to consider their credentials, experience, and fee structure. It’s also important to evaluate your comfort level with them and whether they have a strong client-advisor relationship. To help you choose the right wealth manager, start by assessing your financial needs and identifying your goals. Next, research potential candidates by checking their credentials, such as certifications, and evaluating their experience working with clients in your situation. Finally, ask about their fee structure and make sure it aligns with your budget. In addition, look for a fiduciary duty, which means they are legally obligated to act in your best interests.
Estate Planning
Wealth managers can help you create and execute a plan to protect your assets from lawsuits, creditors, or even problems with beneficiaries. Using legal tools, such as trusts, they can shield assets from potential issues while ensuring they pass on to your loved ones in an efficient manner. A comprehensive estate plan can also reduce or eliminate estate taxes, saving your family money.
Another crucial service a wealth manager can provide is helping you and your family organize your information, documents, and records. Many people have difficulty locating financial information in the event of their incapacitation or death, let alone finding and correcting errors on documents such as titles and beneficiary designations. These mistakes can have significant consequences, costing your family time, attorney’s fees, and even taxes. Taking the time to make sure these documents are in order can save your family from having to deal with them at an already stressful time.
A good wealth manager will take the time to understand your entire financial picture – including your goals, fears, and family dynamics. They can then recommend a solution that is tailored to your unique situation. They can also help you establish a budget and set spending targets for major life events, and they can assist with evaluating and negotiating large financial commitments.
A wealth manager can also advise you on how to structure your investments and other assets to ensure they are in line with your risk tolerance. For example, they can help you determine how much capital you will need to generate during retirement and how to adjust your portfolio’s risk – generally downwards – as you approach that phase of your life. They can also help you incorporate environmental, social, and governance (ESG) factors into your investments and estate planning. This can help you pass on a legacy of responsibility and stewardship to the next generation. This may include setting up trusts for charitable giving or incorporating ESG-focused investing into your overall wealth strategy. They can also advise you on involving younger generations in philanthropy, which can instill values of responsibility and stewardship early.
Retirement Planning
After working hard to accumulate assets, it becomes time to focus on how those assets will be able to support a retirement that is both comfortable and sustainable. As the financial quarterback, a wealth manager can help you plan out a retirement strategy that optimizes income and minimizes taxes while remaining aligned with your overall financial goals.
By incorporating a number of strategies into the retirement planning process, a wealth manager can help you navigate many different types of risks. One of the most important considerations is the impact of inflation on your assets. Inflation can make a dollar that is worth a lot today only worth a fraction of that amount in 30 years. A skilled wealth manager will be able to help you navigate this type of risk by using worksheets that compare your anticipated income and expenses in both current dollars and at their value in 30 years.
Additionally, as more and more individuals are concerned about the environmental or social impact of their investments, wealth managers are addressing these issues by providing services like sustainability reporting. This type of analysis can help you understand how your investments may be affecting global issues like CO2 emissions, water waste, and diversity in the workplace.
A wealth management team should also be able to provide you with guidance on purchasing decisions, large financial commitments, and how much debt or borrowing makes sense given your unique circumstances. By serving as your personal financial quarterback, a wealth manager can help ease the stress that comes with making these major decisions on your own.
The fees for a wealth manager can vary depending on their experience, level of service, and the complexity of your financial needs. However, the most common fee arrangement is a percentage of the assets under management. By understanding the fees and compensation structure of a wealth manager before hiring them, you can ensure that they are aligned with your financial objectives.