Consulting a wealth manager can boost your savings, cut tax bills, and help if you are moving home or even changing career.
When it comes to managing our hard-earned money, it can feel counter-intuitive to part with some of it to pay for expert advice.
However, a good wealth manager can save you far more than the cost of their advice, thanks to the financial well-being they can help you to achieve.
Here are some of the reasons why paying for advice can be a very sound investment.
1. A wealth manager can help grow your nest egg
Saving for the future is a balancing act. All of us want our money to grow, but the investments we make must match our own tolerance for risk. Studies show that those of us who invest without any help often do not make the best investment decisions.
The assets we invest in may not match our risk appetite, or we may make classic mistakes, such as selling our shares when the market crashes or buying when it rises.
A wealth manager will use specialist tools to ensure that your investment portfolio is matched to your goals and risk tolerance. Putting an expert in charge of your investments could prevent you from acting unwisely when the market is volatile, ultimately helping your money grow.
2. Good financial advice can save you and your family tax
Whether you are saving for a specific goal or your own retirement, or hoping to put away money for your family, wealth managers are the experts who can help your money go towards your goals, not into the taxman’s coffers.
A good wealth manager will know how to structure your savings, and when and how to spend your pension to take advantage of generous tax breaks. They can also help to ensure that your family do not lose the bulk of your legacy to estate and other taxes when you are gone, making a huge difference to the wealth of the next generation.
3. Holistic financial advice works towards funding your family goals
Many people visit a wealth manager when they get married or have a child, because they want to ensure that their financial objectives align with the overall plans they are making. That is a wise move, because good financial advice considers hopes and goals, as well as the need to protect dependants in the event of unexpected illness or loss.
So, whether it is planning ahead to fund private education or university, or ensuring that the correct protection products are in place to provide an income if you are unable to work, a wealth manager can put your family on a stable financial footing.
4. Wealth managers can help with a relocation near or far
Even a move down the road can have huge financial implications, and many wealth managers can help with mortgage products as well as with saving for a deposit.
If you are relocating overseas or repatriating, there is even more to think about, including moving pensions, negotiating tax changes and the financial implications of renting property. All these potential minefields can be negotiated with the help of expert wealth managers.
5. Financial advice can help with supporting a career shift or downshift
With many of us working for longer, or wanting a more flexible portfolio career, the potential for different types of earning at different times has grown enormously.
If you are self-employed, your finances can be more complex. You may wish to set up your own company, for instance, and you will certainly be in charge of paying your own pension contributions, with no help from an external employer.
A good wealth manager can help ensure that you can deal with fluctuating income, as well as saving appropriately for later life. Likewise, if you have always dreamt of turning a hobby into a job, a wealth manager can help you to save towards that goal and plan for periods of lower income while you are starting your new business.
Financial advice may involve an initial outlay but, as you can see from these five points above, employing an expert to ensure you use your money wisely can pay dividends at many periods in your life.
Before you make a financial decision, or at a period of change in your life, such as marriage, the birth of a child, divorce or a house move, it is sensible to consider whether an expert could help you to reshape your financial plans to ensure you meet your goals.
Contact us today for a free financial planning consultation and get all your financial affairs in order.
The views expressed in this article are those of the author and do not necessarily reflect the views of AAM Advisory Pte Ltd. This document is intended for general circulation and for information purposes only. It may not be published, circulated, reproduced or distributed in whole or part to any other person without prior consent of AAM. This document/article should not be construed as an offer, solicitation of an offer, or a recommendation to transact in any products mentioned herein. The information does not take into account the specific investment objectives, financial situation or particular needs of any person. Advice should be sought from a licensed wealth manager regarding the suitability of the investment product before making a commitment to purchase the investment product. Whilst we have taken all reasonable care to ensure that the information contained in this document is not untrue or misleading at the time of publication, we cannot guarantee its accuracy or completeness. Any opinion or estimate contained in this document is subject to change without notice. The above report may contain data obtained from third parties and as such we cannot guarantee the accuracy of this data. AAM advisory Pte Ltd is licensed by the Monetary Authority of Singapore, FA Licence no 100032.
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