Basic Wealth Management Advice on Where to Start

Written By Alla Levin
September 30, 2020
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Basic Wealth Management Advice on Where to Start

Any early-day investor who is serious about saving some money and doing it the proper way rather than placing it on a savings account that may or may not earn you interest, should read this article.

Because we, as wealth management professionals, have some excellent advice for you on this topic and where to start and how to do. To help you lead the way into creating a different stream of investment that most don’t even know exist.

But before we jump into the deep end, let’s give you a brief idea of the concept behind it.  So, what is wealth management in any case?

What Wealth Management IsWhat Wealth Management Is

The short of the long is, this is an investment advice-giving service that makes fair use of a combination of various financial services to address your needs.

So when you visit these services, you will be provided with a consultation of sorts, which will be tailored to you, what you want, how much you want to invest, which avenues will fit you the best, for instance, and the experts who sit behind the desk will provide a bespoke strategy that utilizes all the specific financial services and products to meet your needs.

The person who is licensed to give you this advice has typically studied for many years, many subjects involving big numbers, practiced it on smaller amounts of money and then larger ones, and has the experience to give you the best recommendations that will help you to build a portfolio, and this cannot be done by just anyone, but it has to be a licensed professional.

This recommended website will have further information about this for you.

The wealth advisor or financial advisor is exactly that. They will help you to manage your wealth in the best way possible, so you get the most out of it. They provide an assortment of financial principles that may include but are not limited to legal planning, estate planning, tax services, accounting, tax, and financial and investment advice. Depending on the country you reside in, these may differ.

How They Do ItBasic Wealth Management Advice on Where to Start

If you are looking to find an advisor but not sure what they do or how they will help you, keep reading. One may not know where to find such a person, and the truth is, they can be anywhere and work for any company. Some typical wealth management companies specifically offer these services to their customers, while others, such as a bank, for example, offer this as part of a bunch of other services.

In the end, it depends on you, whether you would prefer to go to a bonafide financial service or one that offers everything under one roof, including managing your wealth, such as a private bank. The focus may be on different things. They may work as part of a small business or a larger firm.

You can check this link here https://www.pembrokeinsurances.ie/wealth-management/  for more information about wealth management. Some of the more popular registered ones include Bank of America, Morgan Stanley, Wells Fargo, J.P. Morgan, to name a few.

These establishments have been around for decades, which is a plus, but because of this, they may also charge a higher consultation fee or premiums for their services, in comparison to the smaller firms. The “Wall Street Journal” usually provides all this information at your fingertips.

What you would expect from one of these services or individuals is a step by step process, based on analysis of a bunch of different situations and numbers that you provide them, and they will research themselves using their financial tools.

The first step is to develop a plan that will not only maintain but also increase your available wealth, and this will be based on your current financial situation, coupled with other aspects such as your goals and the level of risk you are willing to go with. Let’s take a quick look at these.

Once the original plan is developed, he or she will meet with you regularly to go through your goals and see how close you are to achieving them. A review is done and possible balancing of the portfolio if needed, and if other services are required, these are then introduced into the mix as well.

Financial risk can fall under a few different categories.

Wealth Management Advice: Financial Management Risk CategoriesFinancial Management Risk Categories

There are typically six different risk levels involved when investing in any financial assets. These start from:

  1. Minimal Risk
  2. Low Risk
  3. Below-Average Risk
  4. Average Risk
  5. Above- Average Risk
  6. Higher Risk

There is a well-known concept called the “risk-reward” theory, which states that the higher the risk you take, the more your investment will boost, and a higher rate of return. This will depend on how conservative or how aggressive you are willing to let the advisor go with your wealth. This, however, can be determined during the initial phases of the process to figure out what the best risk level will be for your specific needs if they are long-term or short-term, for instance.

Typically, two main things will determine this, the bankroll, i.e., the amount of money you will be fine with losing if incase it gets to that, and the Time horizon, which is the length of time you wish to keep your money under those investment or that one investment before you pull out. If, for example, you want to invest $30,000 today and will need it in one year to deposit a new house, it would not be the best thing to place it in a high-risk investment.

In conclusion, if you want to start today, one of the simplest ways to take the first step is via the “investment pyramid,” which will give you an idea of where to start and put a plan together, which you can discuss with your consultant. It is like a food pyramid, only for investors and will help you figure out where to put your money for what your goals are.

A point to note is that volatility is something that goes hand in hand with any type of financial venture; this is to say, the higher the volatility, according to the markets, the riskier the situation. When there are “big swings” in price, this is a characteristic of volatility. In other words, there is a chance of things being good one day and bad the next. It is seldom a steady line. In any case, stay away from stocks or shares that are too volatile. Some are good, but too much over a long period is not. I hope you enjoyed our wealth management advice.

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