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Wealth management decisions: When to bring in a financial advisor?


Everyone has different financial goals and ways to manage wealth. For most investors, basic yet useful financial products like mutual funds, bonds, and insurance can often help meet their financial goals, such as tax planning and saving for their kids’ future or other goals like buying a homeor going on an overseas holiday.

However, for High-Net-Worth Individuals (HNIs), the story is different. They have likely already achieved these goals and are now looking beyond the basics. Thus, their finances require a smart strategy and a more sophisticated approach. This is where expert guidance becomes invaluable. On that note, here are five critical moments when HNIs may find it beneficial to bring in financial advisors.

To handle complex investment strategies

As an HNI, you may plan to take a stake in new startups, fund real estate projects through debt, or even consider a distressed asset. Managing such diversified portfolios isn’t easy and needs assistance from financial advisors.

These advisors can offer personalised guidance to help you carry out and implement useful investment strategies. They study market patterns, assess risk factors, analyse economic trends, and even your business valuation to guide your decisions. With their insights, you can align every financial step with your long-term objectives.

To manage investments overseas

As an HNI, overseas investment is a great way to seize opportunities in the global market or set up a base in another country. You can go for international shares, real estate, private equities, art and collections, or other global assets. However, different countries have distinct regulations and tax structures that may have a direct or indirect influence on your investments.

Having a professional by your side can help mitigate currency risks, comply with international rules, and identify foreign markets that are profitable. This means you can make more prudent decisions when investing overseas and enhance your wealth management strategy.

To plan for business succession

Expert advice from financial and wealth advisors is essential for successful business succession planning. It is about laying a clear plan that covers aspects like business valuation, finding and grooming future inheritors, contingency planning, and dealing with taxation matters.

Such insights are important to avoid disruptions, uncertainty, and conflicts during the succession process, ultimately improving the business’s future competitiveness. Above all, it helps ensure that the business gets the right leaders and continues to thrive ahead.

To create a comprehensive will

When the will is complex or involves multiple assets, companies, beneficiaries, or clauses, the need for professional guidance becomes more vital.

A financial advisor can help you draft a structured will to ensure the undisputed transfer of wealth to beneficiaries. They go through all your assets, be it property, domestic or foreign investments, and personal belongings so that nothing is missed out. A well-composed will simplifies the inheritance process, prevents unnecessary probate hassles, and reduces the chances of conflicts among heirs.

To structure philanthropic initiatives

Financial and wealth planners are crucial to create philanthropic strategies that reflect your values and legacy goals. They can assess the complexities of charitable acts, from selecting the right organisations to structuring donations to create a maximum impact. An advisor may also smartly incorporate philanthropy into your wealth structure through donor-advised funds and private foundations. This allows your generosity to extend beyond your lifetime, benefiting causes you care about for generations to come.

Preserve your wealth and legacy with a financial advisor

The role of a financial advisor does not end at helping you meet a single financial goal. HNIs can continually benefit from their insights and guidance when it comes to real estate diversification, business sale or acquisition, inheriting wealth, strategising a huge charitable donation, adapting to regulatory changes affecting wealth, and preserving affluent lifestyles. Hence, for those with substantial wealth, a financial advisor isn’t just an option but a valuable partner in their financial journey.

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