Wealth management isn't just about picking stocks and bonds. Today, wealth management is a practical, tailored service that uses advanced technology to help individuals meet their financial goals.
More than that, wealth management is for everyone—not just the traditionally wealthy. High-quality wealth management teams help clients with personalized advice, the latest financial trends, and deep contextual knowledge of their goals.
The result? Wealth management clients should be poised to achieve those goals. That is, of course, if they employ advanced wealth management strategies.
But First, A Strong Foundation: Wealth Management 101
Historically, wealth management was fairly straightforward, primarily focusing on stocks, bonds, and mutual funds.
Now that the industry has become more technical and many institutions can offer more client-centric services, good wealth management includes complex strategies such as the handling of digital assets, long-term investment management, and more comprehensive estate and tax planning.
In other words, wealth managers look at a client’s full financial picture—not just one part of their life.
Why Advanced Strategies Matter
Today, employing advanced wealth management strategies is crucial for preserving wealth and navigating the complexity and volatility of modern financial markets.
In short, if you’re looking for …
- Enhanced tax optimization
- Better alignment with personal financial goals
- Improved responses to market changes and opportunities
- The ability to engage with a wide range of investment options
- Assistance in managing a particularly complex financial situation
- The ability to retire with robust financial health and legacy planning
… or if you simply want to feel confident about your finances amid constant economic change, it’s time to look into advanced wealth management strategies.
Advanced Wealth Management Techniques
Ready to get started? Talk to your financial team about these strategies.
Tax-Efficient Investing
One effective option for managing your investments is to do so in a way that minimizes your tax liability and maximizes your after-tax returns.
Your wealth management team can help you employ techniques such as “tax-loss harvesting,” which is a method of offsetting capital gains with strategic losses. (This can help you reduce your annual tax burden).
Estate and Legacy Planning
It’s never too late to enjoy peace of mind about what you’re leaving to your loved ones.
By setting up trusts, engaging in charitable giving, and strategically transferring assets, you can ensure that your wealth is managed and distributed according to your wishes after your passing. It's crucial to work with a legal professional to establish these plans, though wealth managers can administer these strategies and, if needed, attend legal meetings and act as trustees.
Personalized Portfolio Management
As you select investments in line with your goals, values, personal risk tolerance, and time horizons, you’ll need to have a way to manage that personalized approach.
Separately managed accounts (SMAs) can give you the flexibility and oversight you seek. SMAs provide an intuitive way to customize investments and manage them according to your unique criteria. Larger pooled funds may not give you this bespoke feel!
Common Wealth Management Pitfalls and How to Avoid Them
Although wealth management can connect individuals with a wide range of rewards, poorly managed investments or estate plans can be risky.
A few common errors we’ve seen from DIY wealth management include:
- Neglecting to prioritize estate planning early on.
- Opting for static investment strategies that don’t factor in personal life changes or market shifts.
- Overlooking the tax implications of investment decisions.
The key to sidestepping these common errors? Working with a professional wealth manager. When you work with seasoned wealth advisors, you can benefit from:
- Consistent review of your financial plan to ensure your strategies ebb and flow with the market demands (and life’s important moments).
- Timely information about new investment opportunities and tax laws so you can make educated decisions about your financial future.
- Peace of mind and confidence about your decisions because you’ll be tapping into years of experience and expertise in wealth management!
Are you interested in taking your wealth management to the next level? Your team at BNC National Bank is ready to assist. Contact us today with any questions, and we’ll help you get started with advanced wealth management.
