If you’re looking to protect and grow your wealth—for this generation or the next—you need an expert on your side. Why?
Wealth management goes far beyond investment strategies and financial plans. Instead, a wealth manager or wealth management team provides consistent expertise and custom assistance over time to help high-net-worth individuals do exactly what they want with their money.
If you’re savvy with a spreadsheet or have a yen for investments, you could be tempted to tackle your own wealth management solo. You might think this would save you money, stress, and perhaps even some time.
But that may not be the case.
First of all, objectivity is priceless. Having someone who isn’t you—that is, someone who isn’t emotionally and practically connected to your finances—providing clearheaded management services is invaluable.
And if you’re not a professional wealth manager who keeps tabs on the news, takes continuing education classes, and lives and breathes the fast-paced world of investing, you’ll miss out on important tips and tricks.
Today, let’s talk about what investing pros bring to the table. Why is it worth it to work with a wealth manager instead of DIYing your wealth management?
If you’re thinking about managing your own finances, you’ve probably done some research about low-effort, high-impact strategies you can implement on your own time.
It’s time to mythbust those strategies. They may sound nice, but will they actually get you far?
In a perfect scenario, DIY investing might save you a little money and offer you flexibility, true.
But:
DIY investing is complicated. There’s a reason professionals work full-time on investment strategies: It involves keeping track of numerous moving pieces, often at odd hours, both constantly and consistently.
DIY investing makes it easy to get greedy: When you’re personally involved in the outcome of your wealth management, it’s easy to make poor choices that could open the door to short-term gains but may also affect you adversely over the long term.
DIY investing leaves the door open for unintentional mismanagement. Whether you simply lack experience or take your eye off your portfolio at a bad time, there’s a good chance that you’ll end up with your funds in a fiasco.
Even if DIY investing doesn’t lead to preventable problems and rampant money loss, a professional can help you avoid stress and make sure your money is working as hard as possible for you and your future.
Here’s how:
Wealth managers are professionals who do this for a living. They have specific training and experience, and the ability to focus on your funds full-time.
Wealth management professionals stay up to date on the most effective tips and tricks. They get into the nitty-gritty, keeping themselves updated on current tax codes and portfolio strategies. This requires a lot of ongoing research.
Wealth managers have resources that average DIY investors cannot access. Projections; in-depth analyses; awareness of the context of your finances with your goals, location, and background; and more—wealth managers have tools and knowledge that the average person simply doesn’t. Those extra resources can make a world of difference.
Ultimately, DIY investing and wealth management will likely leave money on the table. DIY efforts do not set people up for success in the same way a professional can.
If you’re looking for the ultimate peace of mind, it’s time to find a pro. Working with a wealth management professional will leave you assured that your finances are in good hands for all of your future plans—including retirement, trusts, endowments, gifts, grandkids, and more.
Interested in finding that team? Here are a few considerations to bear in mind:
You want to know that your wealth management team has a suitable communication style. Will someone pick up the phone when you call?
You want to know that your wealth management team understands your specific situation and context. Does it have a local presence, or experience helping people in your community?
You want to know that your wealth management team has the resources that are necessary for you to succeed. Working with wealth managers at a reputable bank can make the process of opening an investment account, for example, much easier.
You want to know that your wealth management team cares about your success! At many larger banks, wealth management clients are just names and numbers. Find a smaller, local bank that will really put in the time to get to know you and your goals; it’ll make all the difference.
At BNC, it’s our goal to make top-tier wealth management services available to high-wealth individuals. We also want to provide clear, updated information to help you make the right decisions for your financial wellness. If you’re interested in learning more about professional wealth management, let us know! Schedule a meeting with a friendly member of our team, and we’ll get started.