Wealth Planning Process, My Wealth Planners (2024)

FAQs

What is the process of wealth planning? ›

Developing a Wealth Plan involves taking a comprehensive look at your financial picture and developing a set of goals to achieve your best financial life. The process of Wealth Planning will involve gathering information on your insurance, taxes, investments, estate plan documents, business documents, and other assets.

Not everyone needs a financial advisor, especially since it's an additional cost. But having the extra help and advice can be paramount in reaching financial goals, especially if you're feeling stuck or unsure of how to get there.

Some traditional financial advisors have minimum investment amounts they require to work with clients. These can range from $20,000 to $500,000 or even more. Why? Because their fees need to cover their time and expertise, and managing smaller portfolios may not be cost-effective for them.

Private wealth managers tend to deal with higher-net-worth clients. A financial advisor may have clients with $100,000 to $5 million in assets, for instance, while a private wealth advisor may work with clients who have upward of $20 million. Private wealth managers often become more involved in asset management.

The steps involved in wealth management are asset management, risk management, wealth accumulation, wise positioning of your assets, and eventual wealth distribution. Long-term wealth generation is the main goal of wealth management, which has a broader reach.

A well-constructed wealth plan encompasses a range of aspects, including investments, taxes, estate planning, retirement, insurance, and more. It is not only built around your goals, but also around your core values.

Answer: From a regulatory perspective, it's usually prohibited to ever charge more than 2%, so it's common to see fees range from as low as 0.25% all the way up to 2%, says certified financial planner Taylor Jessee at Impact Financial.

Many financial advisers charge based on how much money they manage on your behalf, and 1% of your total assets under management is a pretty standard fee. But psst: If you have over $1 million, a flat fee might make a lot more financial sense for you, pros say.

Answer: A 1% fee is around industry average, but you could pay less. You need to ask yourself what type of value you're receiving for that fee. “Does the fee include ancillary services such as financial planning or tax preparation? Investment management, like any service, can be shopped around.

Most financial advisors charge based on how much money they manage for you. That fee can range from 0.25% to 1% per year. Some financial advisors charge a flat hourly or annual fee instead.

What is the average age of a wealth advisor? ›

According to various studies and publications, the average age of financial advisors is somewhere between 51 and 55 years, with 38% expecting to retire in the next ten years.

If you are just starting out and looking to build an investment portfolio, you may be better off using only one investment advisor. In the beginning, your portfolio may be limited to fewer investments belonging to the same category in terms of tax, contribution rules, etc.

Bottom Line. In today's society, high-net-worth individuals are generally defined as those with a net worth of between $1 million and $5 million, and often have access to financial services beyond traditional banking and investing services at commercial banks and credit unions.

If you have considerable wealth and require a long-term estate plan with multiple moving parts, such as preservation of capital, income generation, taxes, insurance and legal issues, a financial planner is likely the better choice.

Key takeaway: It's no coincidence that most American millionaires use a financial advisor. With an experienced financial advisor on your side, you are more likely to take the strategic actions necessary to achieve your long-term goals.

Barbara Stanny describes the four stages of wealth as Survival, Stability, Wealth, and Affluence. Based on thousands of hours as both a client and a counselor in the money coaching process, here is my understanding of each stage.

A good wealth manager will ensure your financial planning becomes more sophisticated through considering an investment strategy, estate planning, inheritance tax, philanthropy and a property plan. The more you put into the financial planning process, the more you are likely to benefit in the long run.