For the budding entrepreneur, managing your money is important, and this extends beyond your business accounts, into your personal finances. It’s all well and good to work on increasing your income, but as one of society’s most ambitious minds, chances are that you’ll want to optimise any money coming into your household. The best way to achieve this is through wealth management strategies.

Strange, then, that so many businesspeople remain ignorant of exactly what wealth management is. Put simply, wealth management is a school of thought that aims to enhance the long-term wealth and financial standing of those with a significant amount of capital in the bank. This is achieved through three key steps: financial planning, personal investments, and estate planning.

Financial Planning

Companies like Sanlam Private Wealth offer an array of services under one roof; one of the easiest for the layman to comprehend is financial planning. This service does exactly what it says on the tin and helps clients to refine their budgeting and make the most of their income. The professional advice offered might cover anything from how best to save for a property purchase to how to accumulate a certain amount in a set space of time, limit spending, grow your existing income, or legally reduce your taxes.

Personal Investments

Investments can be an extremely useful tool for increasing your existing income, but in the hands of the inexperienced they can also be incredibly damaging. Wealth management companies remedy this by providing their clients with experienced professionals who can either invest on their client’s behalf, or help to guide their decisions. Different providers may specialise in a certain market, or else cover a broad array of investment fields, from stocks to metals, CFDs or foreign currencies. These skills are often used to develop and refine a strategy that marries your goals and their expertise to help build your wealth.

Estate Planning

The third strand of wealth management, estate planning, usually has a legal aspect to it. The concept is a simple one: you work with a professional to identify where your money will go upon your death. The idea is to ensure that your wealth is distributed in the most tax-efficient way possible, so as to pass your monetary assets on whilst decimating them as little as possible. This is a particular useful service for those nearing retirement, but it should be taken advantage of by anyone with substantial wealth.

Could a wealth management service be of use to you?

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