Growing Your Financial Portfolio With Private Wealth Management Services: 3 Things To Consider

Private wealth management services can yield high returns on investments. Americans with financial assets exceeding $1 million are classified as high-net-worth individuals, and will see their investments make the most return for them if they are to invest with private wealth management services. With the many services claiming to have the experience needed to manage your financial portfolio well, it's difficult to determine which company or individual you should place your confidence in. Here are 3 things you should definitely consider.

Determine Whether Third-Party Incentives Are Coloring the Wealth Manager's Advice

Before you take the wealth manager's advice, consider whether their decision may be colored by third-party incentives. It is not uncommon for some companies to pay advisors a commission based on the amount of sales they can move annually or for companies to pay the managers a portion of the transaction fee you pay. If your wealth manager is receiving an incentive to sell a certain commodity or stock, it may cloud his or her judgment and him or her from recommending you a better alternative that may make you more money or that may be more stable in the current market.

You should definitely ask the advisors upfront regarding how they are paid, and who is paying them. Take this information into account before deciding whether you want to invest your money in the recommended portfolio or not.

Review the Portfolio Composition

Not all portfolio compositions are equal. Each advisor will have varying levels of comfort in different markets, stocks, bonds and more. Some investments carry more risks than others although they have the potential of yielding a higher return. Don't jump onboard without a second thought. Make sure to review the portfolio composition to determine whether you agree with how your money is being invested.

Just because your wealth advisor is confident with a certain market, it does not necessarily mean they'll be right. If you're not comfortable investing your money in that particular market, make sure you get your advisor to make the necessary adjustments. The bottom line is you should be more than comfortable and confident in the portfolio composition before handing your money over.

Compare the Estimated Return with Other Market Instruments

Some wealth managers estimate high returns that sound too good to be true. You always want to compare the estimated return given to you with other market instruments. For example, consider whether another wealth advisor estimate similar returns in the market, and whether the portfolio composition is likely to yield a return even close to what has been specified. If not, you should always question how the wealth manager plans on achieving the goal. For example, where will they be investing your money? What type of plans and strategies will he or she implement?

More than not, you will be investing your money for long periods of time with the same private wealth management company. Because of this, you should also consider the sustainability of the estimated returns. You should be wary of any wealth managers that claim they are able to offer identical high returns each and every year because the market is constantly changing. It is highly unlikely for market conditions to remain the same year after year.


If you have a lot of assets simply lying around, make your money work for you by investing with private wealth management services. You could potentially earn enough from your investment to sustain and support your current lifestyle. By investing your money wisely, you won't have to worry about your financial future anymore, and can rest assured you'll have enough to maintain a certain living standard and quality of living.

About Me

financial planning for opening a business

Ever since my first day of beauty school, I have held onto the dream of opening my very own salon. I knew that it was going to take a big investment to open the type of salon that I wanted, so I decided to hire a financial planner to help me create a savings plan and get an idea of what it would cost for me to open my salon. I learned all sorts of things about finances during this process. I created my site to help people with the dreams of opening a small business begin planning for the big investment now so that one day their dreams can come true.

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