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When Do You Need to Hire a Wealth Manager?


Deciding at what point to hire a wealth manager can have a big impact on your financial well-being. Oftentimes individuals seek out wealth managers when their financial situation becomes too complex to manage on their own. This could be due to a significant increase in assets following an inheritance, the sale of a business, or substantial investment gains. Some prefer to hire a wealth manager to help with situations such as retirement and estate planning, or to reach specific long-term goals. Wealth managers can provide personalized advice, help create comprehensive and strategic financial plans, and align your investment plan with any long-term goals.

Ready to put together a comprehensive financial and retirement plan? Consider reaching out to a financial advisor.

When to Hire a Wealth Manager

A couple deciding it might be time to hire a wealth manager.

You should consider hiring a wealth manager when you have complex financial needs or significant assets that require professional management and strategic planning. They can provide expertise in investment management, tax optimization and estate planning, particularly if you lack the time, expertise, or desire to manage these aspects yourself. Additionally, hiring a wealth manager can offer you peace of mind knowing that your financial affairs are handled with a focus on long-term growth and the protection of wealth. Let’s take a look at five general examples for when you could benefit from wealth management advice.

Significant Increase in Assets

One common situation that prompts individuals to hire a wealth manager is a significant increase in assets, such as receiving a large inheritance. Managing newfound wealth can be a daunting task, especially without any professional guidance. For example, inheriting a sizable estate may involve intricate tax implications, or the need to make investment decisions. A wealth manager would be well-equipped to help you handle such tasks, and could also integrate this inherited wealth into your existing financial plan, ensuring tax efficiency and optimal growth.

Sale of a Business

Another scenario in which individuals turn to a wealth manager is the sale of a business. Selling a business often comes with specific tax implications, as well as an influx of funds. Those funds will need to be managed so that they retain their value and deliver growth. Wealth managers can walk you through the tax implications and provide expertise in creating a diversified investment portfolio. This helps former business owners transition from managing a company to managing their wealth, thereby maintaining their financial stability and legacy.

Substantial Investment Gains

Investors experiencing substantial gains from their portfolios may also wonder at what point they need a wealth manager. Significant investment success brings tax liabilities and the need for sophisticated investment strategies to sustain and grow wealth. Wealth managers offer advanced financial planning, risk management and personalized investment strategies to help capitalize on market opportunities.

Complex Financial Situations

Wealth managers are also invaluable when dealing with complex financial situations that involve multiple income streams, assets spread across various accounts, or diverse investment vehicles. They can coordinate all aspects of your financial life, including retirement planning, estate planning and charitable giving. Having a wealth manager handle all of these diverse aspects ensures that each one is working optimally to support your financial goals.

Achieving Long-Term Financial Goals

Hiring a wealth manager is not just for immediate financial concerns. It can also help you achieve long-term objectives. Whether preparing for retirement, funding education, or planning a philanthropic legacy, wealth managers provide strategic guidance. They develop comprehensive financial plans tailored to your unique circumstances, helping you achieve these aspirations with confidence and precision.

Bottom Line

Determining when you need a wealth manager hinges on the complexity and size of your financial situation.

A wealth manager can oversee and advise on the comprehensive management of your financial assets, including investment planning, estate planning, tax optimization and risk management. Determining at what point you need a wealth manager hinges on the complexity and size of your financial situation. Significant changes like inheritance, business sales, or investment gains often require professional guidance to manage effectively.

Wealth Management Tips

  • If you need help aligning your finances with your goals, a financial advisor can help you create a personalized plan. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
  • A major step in estate planning is deciding how you want your wishes enforced. The first step is deciding exactly what those wishes should be. With SmartAsset’s estate planning guide, you can decide what should happen after you pass.

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