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When to Hire a Wealth Manager: Signs & Financial Benefits

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01 Oct 20246 mins readBy MOFSL

Introduction

As your assets grow, managing your wealth can seem like a balancing act. No matter your financial goals, handling your multiple investments can get overwhelming and compromise your personal time. To help you with this and minimise your struggle, you can seek the services of a wealth manager. They are experts who help you manage your finances and investments to grow your long-term capital and achieve financial goals. But do you need them? Or is it an added cost? Get your answers in this blog.

When do you need to hire a wealth manager?

Here are some key signs that indicate the need for a wealth manager so you can avoid costly mistakes and protect your financial future:

·   Financial complexity is overwhelming

Managing finances can get complicated when you expand your portfolio and must keep up with the market and updated rules. Handling everything from investments to taxes can feel like a full-time job. If you are juggling with these issues and finding it hard to keep up, it is maybe time to consider a wealth manager. They offer personalised solutions and simplify complex financial scenarios for you. You get assistance with everything, ranging from estate planning to investing strategies.

·   Limited time to manage investments

Are you struggling to keep track of the market trends or make timely portfolio adjustments due to a busy schedule? If that's the case, handing over responsibility to a professional can ensure you stay on top of your investments. Wealth managers continuously monitor and optimise your portfolio. They have the expertise to make prompt adjustments that align with your financial goals. Meanwhile, you can focus on your business, career or family.

·   Market uncertainty causes stress.

Fluctuations in the market can lead to emotional decisions that negatively impact your portfolio. If investing is impacting your mental health, causing stress, anxiety, or sleepless nights, a wealth manager can offer peace of mind. They provide a disciplined approach, ensuring that you stick to a long-term plan even during turbulent times. By hiring such a professional, you can reduce the stress and mitigate the risks tied to emotionally driven investment moves.

·   Approaching major financial milestones

Big life events, like starting a family, sending children to college, retirement, etc., often require expert financial planning. A wealth manager helps you with just that. They guide you through these transitions. They work on optimising your wealth and minimising taxes, ensuring you're prepared to meet those goals without financial strain. With this holistic approach, all areas of your financial life are covered. This makes it easier to navigate the milestones that matter.

·   Need for comprehensive financial planning.

Many people think wealth management is just about investing. While it does much on managing investments, it's much more than that. A wealth manager offers a full suite of financial planning services that include financial planning for your retirement, estate management, and even philanthropic goals. If you are looking for a more cohesive and all-encompassing approach to wealth, hiring a professional is an apt choice. You can ensure all aspects of your finances are working in harmony.

·   You have significant assets.

While there is no hard and fast rule that you should hire a wealth manager, a general guideline is when you become a High-net-worth Individual (HNWI) or an Ultra High-net-worth individual (UHNWI). This happens when your net worth exceeds ₹5 crores or over ₹25 crores in the case of UHWNI. With that kind of liquid assets, the need for sophisticated strategies in areas like asset management and risk mitigation increases. A wealth manager can help you make the most of these opportunities and preserve your wealth while also growing it.

·   Managing Finances is a Hassle

Some people are simply not interested in managing their finances, and that's okay! If financial management feels more like a chore than an empowering activity, hiring a wealth manager can be worth it. Through professional help, you can outsource the task while still ensuring your assets are in good hands. They bring expertise and strategic planning to the table, so you can focus on what matters most to you.

Conclusion

Knowing when to hire a wealth manager can be the difference between peace of mind and financial stress. If you're feeling overwhelmed by the complexity of your finances, too busy to manage them, or simply want expert guidance, wealth managers can help you. Delegating financial responsibilities enables you to manage your investments, estate, and overall wealth efficiently and with long-term success.

Hiring a wealth manager is like having a strategic partner in your corner who helps you build, manage, and protect your wealth for the future. So, if you are still in doubt, consider the reasons discussed above, and if it resonates with you, get professional assistance. Also, do a cost-benefit analysis to make an informed decision.

 

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Disclaimer: The stocks, companies, or financial instruments mentioned in this blog are for informational purposes only and should not be considered as investment recommendations. It is advised to consult with your financial advisor before making any investment decisions. Investment in securities markets are subject to market risks, read all the related documents carefully before investing. Investors are strongly encouraged to carefully read the risk disclosure documents prior to participating in market-related investments or trading activities. Due to the volatile nature of financial markets, no guarantees can be made regarding investment returns. Motilal Oswal Financial Services Ltd. does not offer any assured returns on market-linked securities. Please note that past performance of stocks or indices is not indicative of future results.
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