When to consult a wealth management advisor?

When your savings and investments reach a certain level, it is worth calling a wealth manager to help you make the best possible investments and optimize the management of your assets.

With a multitude of hats, especially in tax and legal expertise, a wealth manager helps his clients grow and grow their capital. To do this, carefully study market trends, identify opportunities and make recommendations.

What is the role of a wealth manager?

The main mission of a wealth manager is to help their clients in the organization and valorization of their real estate, movable (shares, securities) or financial (life insurance, pension savings) assets.

As such, it helps clients better understand the optimization and development of their assets. After evaluating their capital, he defines with them a patrimonial strategy adapted to their needs and their project.

The wealth manager informs his clients of the latest market trends and opportunities and makes recommendations (making financial investments, buying condominiums, etc.). Through his actions, he ensures that the client’s assets grow while minimizing the risks.

From what level of wealth can we call a wealth manager?

There are no official standards that allow the use of a wealth manager. But in reality, your financial situation determines your eligibility for wealth management services.

At some point, everyone is affected by the management of their wealth. This management requires technical expertise and rigorous monitoring of your situation. Therefore, the support of a wealth management board, which can be independent, is usually necessary.

Asset management requires significant knowledge. The greater your wealth, the greater the need to have knowledge and follow trends. Therefore, you can call a professional when you feel overwhelmed by the reality of the markets and feel the need for a little help.

It is not easy to acquire the financial, legal and tax knowledge necessary for the management of an estate. Acquiring this knowledge while following the imperatives of the present, exercising a professional activity and making time for yourself and your family can be a real obstacle. It is from this moment that you may feel the need to call a wealth management advisor.

Where can I find a wealth manager?

A wealth manager is a financial advisor, a tax expert, an investor, a lawyer, an accountant… His role is to audit, analyze, invest and manage the assets in his client’s portfolio.

“Estate” means real estate and land (direct or indirect), but also includes financial assets, copyright and usufruct, physical assets (furniture, cars, equipment, etc.) and also works of art .

Wealth management advisors (CGP) are invaluable in many situations, such as estate preparation, moving, changes in personal or financial situation… or just to take stock and take a complete look at your situation.

There are many types of wealth management advisors. In the banking branches, we meet a lot of CGP, but they often rely on internal products and we can consider that these recommendations are biased.

You can therefore prefer the CGPI (Independent Wealth Management Advisor), who are paid by the hour, or CGPL (Liberal Wealth Management Advisor) who work in an open architecture, with tons of products and partners. It should be noted that the French regulations tend towards this Anglo-Saxon model, which is healthier and guarantees more independence.

In some areas, it is easier to find a wealth management consultant. Finding a wealth management advisor in Ile de France can be difficult because there are so many. However, finding a wealth management advisor in a more remote area can also be difficult, as there will be less supply.

Choose your wealth manager according to your investor profile

Thanks to the development of the Internet and easy access to knowledge and news, it is easier to acquire the principles of wealth management. However, depending on your profile and the size of your assets, you may feel the need for support.

Assets of less than 200,000 euros

This is the case for most investors in France. In this case, it is better to be your own financial advisor and manage your money. Indeed, there is a cost to use the services of CGP which, in the case of large assets, is amortized by the optimizations made to it.

Assets over 400,000 euros

Beyond a certain amount, your wealth can expose you to new challenges, starting with taxation with the real estate wealth tax (IFI, ex-ISF). Your objectives now revolve around tax exemption, tax optimization and passing it on to your heirs.

At the same time, you have to pay special attention to your professional assets. It is therefore important to choose your CGP carefully, as well as your tax lawyer, notary, etc.

Calculate the value of your assets

To evaluate your wealth, you need to link all of your wealth (that is, the assets that earn you money) to all of your liabilities (including your debts and financial obligations).

Include your real estate, financial assets and physical assets in the asset class. The total value acquired by adding the assets forms the “total wealth”. Net wealth is obtained by subtracting liabilities from total wealth.

Everything you own, material and immaterial, must be considered. It is important and wise to keep accurate track of your assets and liabilities so that you can optimize your wealth, even without calling a wealth management advisor.

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