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In recent times, it has been suggested that savers are increasingly disinterested in the rate at which their wealth is able to grow, as they instead turn their attention to issues such as cyber security and identity theft.
This is largely due to the fact that savings rates have been frozen in recent times, as banks and building societies look to reduce costs ahead of the UK’s eventual departure from the EU.
In fact, if you are serious about optimising your capital in the modern age, you may want to consider seeking out expert wealth management advice. Before you partner with a wealth manager, however, here are some key considerations:
1. What Capabilities Do You Need?
Not all wealth management firms have been created equal, and you will need to make a selection with your precise needs in mind. After all, there are some service providers that solely offer advice, for example, while others deliver wealth planning expertise and physical borrowing. Groups such as Sanlam are an example of the latter, and it is important that you make an informed choice that delivers value for your money and your financial objectives.
Above all else, try to find a wealth manager that offers core services which are relevant to your needs, and capable of providing direct assistance in the pursuit of your goals.
2. Do You Want to Be Involved in Wealth Management Decisions?
Depending on your philosophy and the level of knowledge that you possess in relation to the financial markets, you may want to have direct involvement with the management of your wealth.
So, not only do you need to determine the precise role that you want to play in managing your wealth, but you also need to select a service provider that you can work in harmony with.
If you are happy to have limited involvement due to a lack of knowledge, it is advisable to seek out a comprehensive service that can manage the complexities of your account and create an underlying strategy for success.
3. Do You Have a Budget in Relation to Fees?
Securing the services of a wealth management firm will require a fee, and this must be calculated in relation to the type of returns that you are hoping to secure. Not only this, but the nature of individual charges can vary depending on your choice of provider, as while some charge flat advisory fees other earn commissions from trades and dividends.
You will need to determine which option is right for you, and whether you have an initial budget to pay upfront fees or can expect the type of returns that can deliver both commissions and a viable return.
So long as you keep this in mind from the outset, you can make an informed decision that delivers long-term gains.