Importance of Wealth Managers
WHO IS A HIGH NET-WORTH INDIVIDUAL?
Greater net worth those of us with personal liquid assets between Rs. 5 lakh and Rs. 5 crores. A liquid asset is one that can either be redeemed immediately without experiencing a major loss in value or is in the form of cash. You can think of your checking account balance, fixed deposits, stock investments, etc. as liquid assets. Understanding this allows us to see that the bulk of us are either High Net Worth Individuals or, at the very least, on the fringe. Whether or not your worthiness would last in whatever situation is the crucial topic to address right now. even if your normal revenue source is suddenly lost? Giving a firm response to this question is difficult. Living in uncertainty is not therefore recommended.
Risks cannot be ignored
Additionally, without
professional advice, there are significant risks associated with financial
mismanagement. Financial mismanagement can result in the loss of assets, losing
investments, and reserve funds you set up for unforeseen costs. Financial
mismanagement could trap you in a loop from which it might be challenging to
break free.
Enter the Wealth Management
This is where wealth managers come into the picture. To lessen the financial uncertainties in your life, a seasoned wealth manager would work for you. Your worthiness will increase with the assistance of a wealth manager. For instance, the wealth manager would promote you to the upper end of the High Net-worth Individual category if you began at the lower end of the category and received the necessary advice. Your wealth manager's ability to help you reach your financial goals may be shown by the rise in your wealth.
Role of wealth managers
A competent wealth manager will help you with all aspects of your tax, retirement, estate, and risk management. Even though it is normally advised to begin as soon as possible, starting late is still better to starting never.
Origin of Wealth Management in India
In India the earliest companies that offer wealth management services were banks, which were later followed by brokerage firms and boutique advisory firms. Initially, banks started supplying private clients with insurance and mutual fund products as a way of providing wealth management services. Advertised as wealth management companies are brokerage firms. However, in the case of brokerage firms, the focus will be on investing in stocks, whereas other aspects of wealth management may not get their due attention. Boutique advisory firms provide customized wealth management solutions to their clients. In the beginning, the sector was dominated by the big players, however, aided by technology, there are several fintech wealth management firms that are now vying to make a mark in this specialized segment.
Illustration
An actor based in Mumbai who got roles as a supporting actor in television had wondered for years where his money was going as his financial advisor would often ask him to exercise patience. The actor realized the value of wealth management some years later when his television appearances dwindled but his income didn’t. His wealth manager had made the risk assessment of the actor in terms of the limited shelf-life of the actor while planning for him. Thus, it didn’t matter to the actor even if the roles were hard to come by, he was financially sound and secure, thanks to his wealth manager.
Objective assessment of your financial status
People frequently give various justifications for not getting expert financial management counsel. Some people think they don't need wealth managers' assistance, while others haven't sought them out because they think they don't have "enough money" on hand. Because of this, a wealth manager's job becomes more crucial. Wealth managers have the necessary knowledge to assist you in making the best decisions and are able to objectively evaluate your financial situation. However, because your goals are long-term, wealth management calls for financial discipline.
In today's world, where everything seems to be uncertain,
professional wealth management is essential. Wealth managers will assist you in
lowering the financial uncertainty in your life.
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