How Custom, Personalized Wealth Management Solutions Are Changing the Game
In today’s world, everything is personalized from products you buy to the internet you browse. Why would you handle your finances any differently? Personalized wealth management is the future of investing and changing the game in a good way. Keep reading to explore personalized wealth management and learn how it could be right for you.
What is Personalized Wealth Management?
Personalized wealth management is a financial planning approach that manages your assets in a way that is specific to your goals and needs. This personalized approach of managing your assets also takes into account your personal risk tolerance as well as how much time you have to invest and grow your portfolio before you want to move to a position of spending and maintaining it. Personalized wealth management is changing the game as people demand a customized approach from their investment firm.
How is Personalized Wealth Management Different From Financial Planning?
Traditional financial planning doesn’t take into account a person’s risk, and how their investments align with their personal beliefs, nor does it take action or consider plans for charitable contributions or even strategic asset allocation. A personalized wealth management firm is going to build an individual plan that is catered to your specific needs, which is different from a more generic, blanket plan that could be applied uniformly to different customers. These personalized plans take time to be created and have a specific strategy for your unique situation. Personalized wealth management is also suited to high net worth individuals.
In short, traditional financial planning is often pretty basic, and anyone can engage in this practice. Actions such as contributing a flat amount of money, often deducted automatically from your paycheck to a retirement account such as 401k or Roth IRA could be considered part of a financial plan. There are also robo-plans that can be generated online. Although these plans do accumulate funds, and some do take into account an individual’s financial goals, they are not considered personalized wealth management plans.
What are the Benefits of Personalized Wealth Management?
Personalized wealth management isn’t a new offering, but it’s changing the game in today’s market with a better user experience with more accessibility. Investors are becoming more informed about their decisions and have higher expectations for their wealth management plans. Let’s take a look at some of the benefits of using personalized wealth management.
Better User Experience
From better access to your portfolio with an online portal to personalized attention and improved communication, having personalized wealth management is a game changer for those who are used to receiving a statement from a company showing stagnant returns. Ditch the method that treats you like an account number and choose a strategy that truly looks at your entire picture and develops a plan based on your unique needs.
Focused on Your Goals
Personalized wealth management is unique in that it is focused on you. You may be close to retiring and not wanting to take on too many risks. Conversely, you may be at the beginning of your investment journey. Your advisors will create a strategy that minimizes your risks and maximizes your returns, growing your wealth on the timeline that makes the most sense to achieve your financial goals. You can expect clear communication and a collaborative approach from personalized wealth management.
Investments Tailored to Your Beliefs
A personalized wealth management firm can also help you if you are interested in engaging in an ESG or SRI strategy. Invest in a way that grows wealth while still staying in line with your personal values and beliefs. As investors become more informed about the companies in which they invest, these strategies are becoming more popular. A personalized wealth management firm can help you with this investment approach.
Reach Your Financial Goals
Although traditional financial planning could theoretically help you reach your financial goals, personalized wealth management will do so in a way that is unique to your situation, your cash flow needs, even your personal beliefs, and more. As opposed to traditional financial planning, personalized wealth management will also help with tax strategies to grow your money in a responsible way that keeps more in your pocket while still adhering to tax laws. Reach your financial goals while staying true to your beliefs, your needs, and more.
What to Look for in a Personalized Wealth Management Firm
If you’re considering working with a personalized wealth management firm to grow your wealth, there are three big considerations at minimum that must be considered: the firm’s qualifications, experience, and their rates.
Qualifications
Qualifications are important, but it’s also important to have access to a wide variety of investors so that you can be sure your individual needs are met, no matter how unique your financial situation is. For example, at ACG, we have analysts, CFA chartholders, wealth advisors and more within our team of investment professionals. More qualifications also means you have access to even more methods of investing.
Experience
Experience matters when it comes to financial investing. Using a personalized wealth management firm that has a history of success, has navigated the ups and downs of the market over time, and has experience with similar portfolios and clients will give you the best possible outcome. A large team of professionals also means that you can have access to professionals with specific experience in certain markets. It also means there can be a collaborative effort to create a strategy that will generate the best possible returns for your investments.
Rates
Depending on the personalized wealth management firm you choose, you may see different fee structures. Cheapest doesn’t always mean better, so it’s important to go with the firm in which you find the most value for the most customized approach. Make sure the company you choose is upfront about their fee structure and honest about what you get for your money.
Try Personalized Wealth Management Today
Ready to see how much better personalized wealth management can be for you and your financial situation? We’ll review your goals, timeline for saving, risks, and more to see how we can best meet your specific financial needs with a plan that works. Contact us at ACG today to meet and see how we can reach your financial goals.