WEALTH MANAGEMENT: ENSURING A SECURE FINANCIAL LIFE In association with Helvetia Wealth

Guy van der Walt, Managing Director, Helvetia Wealth

Many Irish people have a good reputation for creating wealth and the growing economy in ireland has seen an increase in the number of wealthy individuals and the demand for wealth managers in recent years, writes Guy van der Walt

Many Irish investors now see the value of carefully managing their wealth so that they may provide adequately for their future and the future of their families. To meet this need there is an increasing number of wealth management services and advisors becoming available. Just what is wealth planning and how is it best achieved? What investment advice is available and which ones should be given consideration?

Defining Wealth Management

Reaching a definition of wealth management is not easy. There are as many different views as there are advisors. However, to start most would agree that wealth management is not investment management. Investment management forms part of wealth management, but wealth management is much broader and takes into account such aspects of the individuals financial life as estate planning, risk assessment, asset protection, cash flow and debt requirement.

While there are many different approaches to wealth management, most experts agree it involves a number of important principles such as comprehensive long term planning that takes into account all of the aspects of the individuals financial life. To meet this there are a variety of products and services available.

Can you manage your own wealth

Helvetia Wealth can help you if:

» You need expertise that you do not neccessarily possess in certain areas of your finances. For example, we can help you evaluate your level of risk in your investment portfolio
» You want to get a professional opinion about the financial plan you have developed yourself
» You simply do not have the time to undertake your own financial planning
» You feel a professional advisor can help you improve how you are currently managing your portfolio
» You know you need to improve your current financial situation but do not know where to start

The Full Picture

For many reasons people find it hard to disclose their financial details. It takes a lot of time to build up this trust. Often we have to embark on an education process to try and ensure the client understands the importance of their information when trying to develop a comprehensive financial plan or investment strategy. Therefore one of the key roles of a wealth manager is relationship management. We need to develop long term relationships with our clients to understand their needs, goals, circumstances, and to help give them ongoing support that considers their changing circumstances.

Long Term Relationship

In wealth management, a relationship should be for the long term and one with regular contact over the years. Circumstances change, markets move, and you may find the original plan, a few years later, is no longer the optimal plan given current circumstances. It invariably takes time to generate wealth through investments. Ongoing communication between the wealth manager and the clients is vital to keep in touch and ensure a transparent relationship. In addition you cannot assume that all clients are financially literate so a good wealth manager should avoid using jargon where possible and should break down the clients portfolio geographically whilst disclosing all costs.

Objective Advice

There is a difference between someone who gives advice and someone who sells products. The broker, who is simply selling products, has a vested interest in that product and is less likely to be able to give more objective advice than a wealth manager can give.

Tax

Tax can pose an important threat to wealth generation and preservation. Whilst it must be paid, there is little reason to pay more than necessary. There are numerous considerations to take into account with regard to tax and tax planning should always be left to the experts. Investing in a variety of portfolios can have important tax implications, which is why it is made easier if affairs are handled though one platform, which can provide an income and capital gain statement on an annual basis.