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Posted 30th May 2023

Debunked: Common Myths about Wealth Management

Wealth management can be one of the most beneficial components in your financial journey. With that being said, there’s often a variety of misconceptions surrounding wealth management, and plenty of investors might struggle to fully understand how it works.

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debunked: common myths about wealth management.


Debunked: Common Myths about Wealth Management

Wealth management can be one of the most beneficial components in your financial journey. With that being said, there’s often a variety of misconceptions surrounding wealth management, and plenty of investors might struggle to fully understand how it works.

To help clear these up, this article will take you through some of the common myths surrounding modern wealth management.

Scroll on to find out more.

You have to be an experienced investor

One of the first misconceptions about wealth management is that you need to be an experienced and knowledgeable investor to obtain a wealth manager.

In fact, wealth management services can be beneficial to all types of investors and can cater to a wide variety of financial goals.

For instance, you might be a young investor without much experience in the markets, or you could be an experienced investor looking to explore new opportunities, or you may simply want to know the best way to save for your retirement.

Whatever your experience in investing, a wealth manager can bring their own knowledge and expertise to your situation.

You get unexpected fees

Another myth when it comes to wealth management is that you’ll be subject to a range of unexpected fees that you’re bombarded with out of nowhere.

In some cases, this might be true. However, we recommend you find a professional wealth management service that offers clear and transparent fees from the beginning – such as 1% less in annual fees, for instance.

These fees can also be relative to the total amount you have invested, meaning you’re only paying for the value of your investments, and receiving a more suitable value for money.

It’s only beneficial for certain scenarios

You might also be under the impression that wealth management is only beneficial for a select few scenarios.

The truth is, there’s a vast range of financial situations where wealth management can significantly help your finances.

For instance, you might be looking to contribute to your pension more tax-efficiently or allocate your assets more effectively. Also, you could be looking to protect your wealth through a divorce, or to leave an inheritance for the next generation.

Whatever your situation, discuss with your wealth manager how you can build your wealth effectively, and overcome any challenges or unique requirements.

You’re left out of the loop with your finances

Another myth surrounding wealth management is that once your wealth manager begins handling your finances, you feel left out of the loop and disconnected from your wealth.

The truth is the complete opposite.

Wealth managers are indeed able to handle a large amount of your wealth and investments on your behalf, but you are offered complete visibility over your finances, and can make any necessary adjustments as you see fit.

For one, your wealth manager can give you access to powerful online tools that help you monitor all your investments and assets for the future.

Plus, any changes you want made to your investments – such as including more of your investor values in each opportunity – you can simply discuss with your adviser and they’ll find the best way to implement these changes.

You only have one meeting with your wealth manager

The final myth we want to debunk for wealth management is that you only have one meeting or consultation with your wealth manager.

Whilst this is an option, you can in fact receive ongoing advice from your wealth manager, to offer expert guidance along your entire financial journey.

This means as your financial circumstance goes through changes – such as changes in your career or lifestyle, or external factors such as tax rates and market changes – you’ll receive advice on how to navigate these impacts effectively.

Constant reviewing of your financial plan with your adviser can also lead to more wealth resilience and increased financial confidence as you strive for your goals.

Now you know the difference between the myths and realities of modern wealth management, be sure to consult with your own wealth manager to begin developing your financial approach for the future.

Please note, the value of your investments can go down as well as up.

Categories: Business Advice, News


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