Dispelling Private Wealth Management Misconceptions

13 August 2015
 Categories: , Blog

Managing your financial assets can be a tedious chore that requires countless hours of research and high-pressure decision making. Not surprisingly, this is a task that many people would rather have done by an experienced professional. To this end, private wealth management companies can be an excellent option, but you may be unfamiliar with these services. Learning the following questions and answers should help you to have a better understanding of whether a private wealth management firm is right for your investment needs. 

Myth: Anyone Can Use Private Wealth Management Services

One of the main advantages of opting to use a private wealth management provider is that you will receive highly customized attention. As a result, these firms often have strict investment requirements that you will have to meet to be eligible for their help. Often, these restrictions require individuals to have a minimum amount to invest. 

The minimum investment amount will vary from institution to institution, and you will need to speak to each one to determine whether you are eligible for their services. It should also be noted that these firms invest for the long-term, and if you are wanting to pursue an overly risky investment strategy, these companies may try to dissuade you or may not accept your business. 

Myth: It Is Difficult To Leave A Private Wealth Management Firm If You Are Unhappy

Another common belief about private wealth management is that you will be forced to sign a long-term contract with these services. As a result, some people are concerned that they will be unable to leave if they are unhappy with the service they have received. Luckily, this does not have to be the case because many of these services do not require any form of long-term commitment. 

Rather, if you wanted to leave the service, you would simply need to notify the provider in writing that you wish to terminate your business relationship. This will start the process of the company releasing control of your assets back to you. The exact steps for this process will vary, but this information should be included in your original contract that you signed with the provider. 

If you are struggling to manage your investments and finances, you may find that a private wealth management company is the best solution for you. By understanding that there are investment minimums to use these services and that you can use these services without a long-term commitment, you will be better informed when choosing whether to use these services.