Disclaimer: This blog is for informational purposes only and should not be considered financial advice. For personalized financial guidance, please get in touch with our Round Rock Advisors team today.
The Importance of Wealth Management for Your Financial Life
There comes a time in your life when you need to start thinking about your future — your financial future, to be precise. While you may be actively contributing to a 401(K) plan already, there’s more than meets the eye; you may have other financial goals you’re looking to achieve but may not be sure how to achieve them.
Luckily, that’s where wealth management comes in.
What a Private Wealth Advisor Does in Wealth Management
Wealth management, also known as financial planning, is when you meet with a private wealth advisor to evaluate your current and future financial state based on present financial objectives (also known as variables). A private wealth advisor will take your short-term and long-term monetary goals (e.g., buying a home) and provide you with solid financial advice, as well as strategies, on how to meet those goals over a certain period.
How a Financial Advisor Supports Your Investment and Financial Plan
Wealth management is vital for every individual. While you can map out your financial future on your own, it’s wise to have the help of a private wealth advisor instead. You can think of a financial advisor as a coach: they’ll be cheering you on to meet your monetary goals while paying close attention to your financial plan to make sure you’re on track or if any adjustments need to be made.
As mentioned earlier, there’s a chance you’re contributing to a retirement plan or saving for your golden years on your own. Regardless of the situation, your private wealth advisor will set goals for how much money you should be saving to live comfortably, as well as offer advice on the types of investments you should consider owning in your portfolio.
In addition to planning for your retirement, financial planning can help you prepare for unexpected events that may arise in the future. For instance, your vehicle may give way, and you’ll need to purchase another one — or you may need surgery, and those funds you work to secure now will help cover the costs of your medical bills for anything insurance will not take care of.
Speak with a Financial Advisor to Start Your Long-Term Financial Planning
At Round Rock Advisors, we take a holistic approach to financial planning. Our private wealth advisors are here to help you plan for your short-term and long-term monetary goals while helping set you up for success.
To schedule a consultation with our financial advisors in Wilton, CT, call us at (203) 920-4774 or visit our website — we look forward to helping you!
FAQ About Wealth Management
What is the meaning of wealth management?
Wealth management is a holistic financial service that helps individuals grow, protect, and manage their wealth. It combines financial planning, investment management, tax strategies, and estate planning to align with your financial goals and overall financial situation.
How much money do you need to have a wealth manager?
Many wealth managers work with clients who have at least $250,000 in assets under management, but some offer flexible services for those with less. The right wealth manager will tailor their level of service based on your needs and goals.
What is an example of wealth management?
A typical example is a financial advisor helping you create a plan for retirement, invest in diversified asset classes, and reduce taxes through proper asset allocation—all as part of a long-term financial strategy.
What is the 72 rule in wealth management?
The Rule of 72 helps estimate how long it takes to double your investment. Divide 72 by your expected annual return to find the number of years it would take. For example, a 6% return would double your money in 12 years.
How do wealth managers get paid?
Wealth managers may charge a fee based on assets under management, hourly consulting rates, or flat annual fees. Their compensation often depends on the advisory service and complexity of your financial plan.
What is the $1000 a month rule for retirement?
This rule suggests you’ll need about $240,000 saved for every $1,000 in monthly retirement income you want. It’s a simple guideline used in financial planning to estimate how much you should save for a comfortable future.
