Wealth management advice: when and why should you use it?

Having a better view of your financial situation and making the right decision to optimize your wealth is not a skill given to everyone. Whether it is to grow your savings, to carry out a project, to finance the studies of your children or to prepare the transfer of a good, the question of the inheritance remains always complex and is strewn with uncertainties. This is why seeking the advice of an expert has become common to make the best decisions. Young concept located at the crossroads of several disciplines, including finance, law, economics and sociology, wealth management is the action of optimizing the movable and immovable property held by a company or an individual.

When and why should you use the services of a wealth management advisor? Let’s see this together.

Asset management, what’s this ?

In the term asset management, there is first the word “heritage”. This designates all the goods or assets belonging to a natural or legal person from which its debts and financial commitments are subtracted. In simpler terms, wealth is simply the amount of wealth a person has at any given time.

Heritage consists of real estate (land and real estate), banking heritage (bank and stock market investments) and professional heritage (professional properties, shares, goodwill, etc.).

In an unstable economic context and uncertainties about the future (job loss, retirement, etc.), each person is called upon to build up assets to prepare for the future, finance his retirement or pass on a capital to his descendants. All these operations require good management.

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Wealth management is the set of techniques that allowoptimize the heritage of a person and therefore to contribute to the increase of his wealth by maximizing his earnings and minimizing the risks.

The wealth management advisor, who is it ?

As its name suggests, the wealth management advisor, who works as a freelance or employee in a wealth management firm or a bank, is a wealth management specialist. It’s a investment expert whose role is to provide impartial assistance to its client in the analysis and organization of its assets to enable it to achieve its objectives. As an expert, his intervention will not be based only on advice. He is also called upon to support his client in the management andoptimization of its assets. As such, its activity is organized around 3 major stages:

Carrying out a heritage assessment

The asset balance sheet is a personalized analysis that makes it possible to establish a precise diagnosis of the asset situation of somebody. To establish this report, the CGP will be based on three criteria, including the professional situation (employment, salary…), the family situation (marital status, composition of the household…) and the economic situation via the client’s existing assets.

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Determining the client’s profile

In this second step, the wealth management advisor will perform client profiling based on the previously completed asset assessment. To do this, he will take into account the client’s aversion to risk, his expectations of profit and his short and long-term objectives. Depending on the client’s profile, these objectives are varied and different: building up savings, optimization of taxation, profitability of investments, protection of relatives, acquisition of a property, preparation for retirement, transmission to relatives …

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Capital management

Depending on the information collected during the first two steps, the wealth management advisor will manage or invest the capital. He will also provide advice on the allocation of assets between the different asset classes, investment methods, existing financing and optimization of assets.

To increase his client’s capital, he will work on various financial and real estate products, including financial investments, real estate investments, tax exemption, rental real estate management and asset diversification.

When to call in a wealth management advisor?

There are no official criteria for determining whether or not you should use the services of a PMC. It is your patrimonial and financial situation that determines your need in practice. Indeed, as soon as a life project is set up, the heritage question is raised: everyone is concerned at a given moment by the problem.

Here are some key situations that could lead you to contact a wealth management expert :

  • You get married: he can help you choose the contract to select according to your personal and professional situation.
  • You plan to start an entrepreneur: the CGP can help you organize your professional retraining, whether you want to become a business manager or a liberal professional.
  • You plan to become a homeowner: the wealth management advisor can assist you in choosing the method of ownership suited to your situation, but above all that allows you to optimize your wealth.
  • You want to optimize and reduce your taxation: when you think that you are paying too much tax, the CGP can help you to see more clearly in the systems of tax exemption and to establish your tax declarations.
  • Your heritage grows as a result of an inheritance: an inheritance will bring many changes in your heritage situation. The CGP is at your side to help you make the right decisions and to structure your heritage after receiving an inheritance.
  • You are preparing for your retirement: it will provide you with solutions tailored to your expectations for a peaceful financial retirement.
  • You plan to pass on your assets: the CGP will support you in organizing the transmission of your assets.
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Wealth Management Advisor

Why seek a professional to manage your wealth?

Many advantages await you by entrusting the management of your assets to a specialist.

Firstly, with his subject matter expertise and perfect market knowledge, he can help you to make the best decisions with the aim of optimizing your assets. Second, the wealth management advisor can offer you a wide choice of financial products in addition to the traditional products offered by well-known organizations. By playing his network, he can offer you products reserved for clients of private banks if that matches your profile.

Finally, he will provide personalized advice that adapts to your situation and that offers added value to your assets while minimizing risks.

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