Do You Need A Wealth Manager?

In the initial years of your professional life, you put your savings to work and create an investment portfolio. Then, eventually, your investment portfolio turns into our wealth. For some who never invest in the markets seriously but make great progress in their careers, turn their savings into wealth directly. In short, you will likely create substantial wealth if you do the right things in life for a while.

This article is for you if you have arrived and created substantial wealth for yourself and your family. It is for you, even if you are not there yet, but on your way to creating wealth.

The question we answer in this article is - Do you need a wealth manager?

But first, let’s take a step back and answer the question - 

Who Is A Wealth Manager?

A Wealth Manager is someone who can assess your personal and financial situation and advise the best course of action for your money.

Wealth Management firms employ qualified and professional wealth managers and train them well so that they can handle your money effectively.

Here are the major areas where they can help you:

1.Money management and insurance

2.Investing in different financial assets

3.Real estate management

4.Will creation and succession planning

Specific wealth management firms can help you beyond these areas, too—for example, philanthropy, setting up trusts, etc.

Do You Need A Wealth Manager?

The answer is yes if any of the following applies to you:

1.You don’t have the time required to manage your money/wealth

2.Your wealth has increased rapidly, requiring a different approach

3.Managing money/wealth is not your cup of tea

Note: While speaking of wealth managers who help wealthy folks manage their money, the above points apply even if you don’t have substantial wealth.

Here are a couple of examples:

A 25-year-old consultant who is super busy is not wealthy yet but has a top 1% salary. This person should also outsource their money problems to a professional like a Registered Investment Advisor.

Similarly, if you are a beneficiary of an inheritance or an ESOP liquidation event, a different approach to managing your increased wealth will be required.

Coming back, let’s look at some signs that may help you identify if you belong to one of the 3 categories of individuals mentioned above. 

You Don’t Have The Time Required To Manage Your Wealth

Managing your wealth takes work.

There are just too many questions to answer and aspects to consider.

By the way, investing money to grow it is just one aspect of managing wealth.

If you work more than 50-55 hours weekly. 

Even if you can do a job as well as a wealth manager, it will help you save time and effort that can be better spent with your family or on a hobby.

Your Wealth Has Increased Rapidly Requiring A Different Approach

Everyone goes at their own pace regarding relationships, careers, making money, etc.

Some folks become wealthy at the age of 35, while others at the age of 65. It varies a lot.

Similarly, how you become wealthy also varies. It could be through the slow process of saving and investing discipline while focusing on your profession. It could be through inheritance. It could be through making big investment bets in your or someone else’s business.

Sometimes, people become wealthy fast. This is where they struggle a bit with managing their newfound wealth.

Suppose your net worth has increased multifold in a short period. In that case, you need a wealth manager who can help you navigate the newfound challenges associated with your wealth.

 Managing money is not your cup of tea

Wealthy folks are super competitive. Maybe that’s why they were able to create wealth in the first place.

But when this attribute trickles into money management, that’s where things can go south.

Wealth is fickle. You can lose it just as fast, if not faster than you have made it, if you keep committing money mistakes.

The simple point is to identify if you have the personality and attributes required to manage your money. If you don’t, it’s not a problem: hire a competent wealth manager to do it for you.

(Disclaimer: ABP Network Pvt. Ltd. and/or ABP Live does not in any manner whatsoever endorse/subscribe to the contents of this article and/or views expressed herein. Reader discretion is advised.)