best wealth management companies

5 Things To Expect from the Best Wealth Management Companies

Did you know that only 57% of adults in the United States are financially literate? The topic of finances is sensitive which is why it’s best to talk with professionals.

Even if you consider yourself financially literate, give yourself peace of mind by handing off your finances to the best wealth management companies.

Not sure what services are offered by these organizations? Keep reading to find out and see how you can benefit.

1. Financial Planning

The best wealth management companies offer financial planning as one of their high-level services. This service generally includes investment insight, financial advice, and tax guidance.

Wealth management helps affluent families with financial questions and legacy planning. Wealth managers should work with different experts like a lawyer or an accountant on your behalf.

Financial management involves curating a plan tailored to your specific needs. For example, the plan will take all of these needs into account:

  • Cash flow projections
  • Investments
  • Retirement and life stage planning
  • Insurance coverage
  • Estate planning
  • Charitable giving
  • Tax efficiency

Look for wealth managers in good standing and with Certified Financial PlannersTM on staff. Be sure to vet the financial advisors you hire using the Financial Industry Regulatory Authority’s BrokerCheck tool.

Keep in mind that wealth management services sometimes require account minimums as they will bill you based on assets under management rather than on a fee-basis. 

2. Portfolio Management

Another one of the wealth management services you can benefit from is portfolio management. The goal of a portfolio manager is to help you with your investment goals.

They will work with you to determine an objective by figuring out your risk tolerance. Managers will then determine suitable asset classes based on your investment desires. Some of the different asset classes are:

  • Equity
  • Fixed income
  • Bonds
  • Real estate

They will then help you set weights for each asset class. For example, you can invest 60% into equities and 40% into bonds.

The asset allocation you decide on will reflect your desire for returns and risk. You’ll likely come back to an investment manager for periodic rebalancing because asset weights can deviate.

During the investment period, the manager will conduct asset allocations depending on their investment philosophy.

Last, but definitely not least, the manager will work with you to measure the performance of your investments. This is essential to figuring out if your investment strategy is working and if it needs to change.

3. Retirement Planning

There is never a bad time to begin retirement planning. Retirement plans are a crucial piece of a wealth management service.

Retirement planners will take inventory of the finances you have to weigh out different possibilities for the future.

The process begins with mapping out retirement goals, understanding the benefits, and planning for the unexpected.

By taking into account your financial situation, a retirement planner can offer advice on when to take Social Security benefits and tell you what pension distribution choices are best for your situation.

Annuities are possible investments a planner might recommend to you. If you go this route to plan for retirement, the planner will know which accounts to draw from and in what amounts. They can also help reduce the taxes you pay.

If you have an employer-matching retirement plan like a 401(k), a planner can help determine the ideal amount to deposit from you paycheck. If you don’t have a workplace retirement plan, a planner can help you open your own account.

It’s possible you’ll have a combination of retirement accounts. The best retirement plans will provide tax advantages and sometimes a savings incentive.

With all of these things in mind, a planner will tell you how much retirement income you can expect to have.

4. Financial Risk Management

Managing financial risk is not something that is easy to do alone. With the aid of a wealth management company, professionals can help you understand your investment risk tolerance.

Expert financial planners will calculate your risk by considering your loss tolerance, financial leverage, and liquidity needs.

With this information, they can strategically align your risk tolerance with your investments and financial plan.

At Morton Brown Family Wealth, the financial advisors use a risk assessment tool to assign you a Risk Number. The score will guide you and the manager to appropriate investments. Calculate your Risk Number now.

The initial risk score is only the beginning of financial risk management services. Managers will recalculate your risk score over time, especially as you reach specific financial milestones.

As your score changes, if necessary, adjustments are made to your financial plan to align with your risk tolerance while still focusing on your goals.

5. Estate Planning

Planning for a future where you are no longer in the picture is tough, but it is a necessary step in life to protect your loved ones. Estate planning determines who receives your assets upon your death.

Financial advisors can work with you to fill out the correct estate planning documents. Wealth management companies work with estate planning lawyers to create a plan that can include the following:

  • Will
  • Durable Power of Attorney for Finance
  • Power of Attorney for Healthcare
  • Living will
  • Letter of instruction

If you own a business, your estate plan should include a succession strategy as well.

Services of the Best Wealth Management Companies

The best wealth management companies offer services for every stage of life you are in. If you want to get a better hold on your personal finances, hiring advisors is the right plan of action.

When you work with a wealth management professional, you benefit from financing planning, portfolio management, retirement planning, financial risk management, and estate planning.

Morton Brown Family Wealth offers these services and more. Contact us now or visit our Allentown, PA office today to get started with a financial plan tailored to you.