What is wealth management?

Published on : 23 June 20204 min reading time

In order to make your assets grow, many solutions have been put in place. Although some of them are more or less risky, they are relatively profitable. Wealth management by a specialised company allows you to optimise your capital, while reducing the risks. But why and when should you contact a specialist? The answers in a few lines.

What is wealth management?

Whether you have real estate, movable property or intellectual property, you should be aware that you have to pay tax. In addition, the amount of tax you have to pay increases with the number and value of your assets. And even if you wish to pass them on to your descendants, you are still required to pay transfer and/or inheritance tax. At company level, income, capital gains and dividends are also subject to social security and tax deductions. Hence the need for rigorous asset management. This consists of implementing a good strategy to preserve your assets or make investments.

Wealth management is organised in three different stages:

– The first stage consists of evaluating your assets through a wealth assessment, taking into account your family and professional situation as well as the economic situation.

– The second step is to establish your profile. Several points are then taken into account: your risk aversion, your objectives, whether short or long term, and the level of profitability you wish to achieve.

– And finally, depending on your profile and that of your assets, it is necessary to set up strategies to manage or invest the capital in question, as well as the investment project (which may be financial or real estate).

What roles does the wealth management advisor play?

Above all, you should be aware that the wealth management advisor is free to exercise his or her profession whether as a freelancer (independent wealth manager) or as an employee in a banking establishment, an insurance company (salaried wealth manager) or for a large company (a franchisee). In all cases, his attributions are the same.

As an investment adviser, he offers you sound advice on taxation, economics, finance and law depending on the nature of your assets (financial, professional, real estate, personal, etc.). Whether you wish to sell your assets, build up a capital, or simply receive regular income, he also intervenes to offer you the most appropriate solutions.

In order to do so :

– he will draw up an inventory of fixtures of your assets (patrimonial balance sheet), while helping you to define your objectives.

– it carries out an in-depth analysis of market trends in order to propose more advantageous orientations according to your situation, but especially according to your project and its constraints

– it then makes the investments on your behalf and handles all transaction negotiations

How do you choose your wealth management advisor?

As his role is also to enhance the value of your assets (real estate, furniture, financial or intellectual assets), his missions are therefore at the crossroads between different sectors of activity. As a result, versatility is essential. In addition to demonstrating ethics and deontology, they must also have a high level of competence in legal, financial and tax matters, as well as in economic and social matters.

In order for him to provide you with relevant advice, he must have a better overview of your financial situation. To do this, he must be able to draw up a precise balance sheet with you and discuss your projects. It is really important that he listens to you and helps you in your decision-making.

Your manager will also have to accompany you for many years and have access to all your information, even the most intimate, so make sure you choose someone you can trust. And don’t forget that he or she must have the multi-accreditations required for his or her job.

The necessary levers for wealth management

In order to maximise your gains and make your assets grow, your asset manager is required to work with financial and real estate products, while monitoring their tax developments (income and capital tax exemption, transfer and inheritance tax, stock market investments, the various laws on real estate investments, etc.).

To become a good wealth management advisor, professionalism is also one of the indispensable tools.

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