How a Wealth Manager Can Help You Prepare for Retirement

Jeremy BiberdorfBy: Jeremy Biberdorf

March 16, 2016March 16, 2016

How a Wealth Manager Can Help You Prepare for Retirement

We all want to live long, healthy useful lives. A solid retirement plan is one of the best means of achieving security in advanced age, and even sooner if one plans to build enough wealth to retire early. Since most people want to live as long as possible, it pays to think big when it comes to retirement and be prepared for the notion that generating a large amount of wealth is necessary to retire comfortably for what may be decades. A wealth manager can take the guesswork out of planning for retirement and find the best ways to maximize your investments to ensure a good life in the golden years.

Why Not Go It Alone?

There are many courses and financial gurus who promise a return on investment and consistency in their successful calls that will help anyone prepare for retirement. Whether it is Motley Fool stock picks, real estate, or commodities, advice is ubiquitous on the web. Many people have questions about the long-term viability of the Social Security system and if it will hold up by the time they retire. They feel that social security simply won’t be enough to fund a reasonable lifestyle in the golden years. Out of a feeling of desperation and urgency, many people browse the internet for answers.

While it is possible to make some decent money on the long and short-term financial advice of self-described investment mavens, the plethora of information and advice can be difficult for a layman to sort out. In addition, with various investing strategies and programs, there is little sense of the big picture regarding your own investment style and goals. This is where a wealth manager comes into play and can be essential in creating the kind of growth you need to retire securely.

What to Look for in a Wealth Manager

A wealth manager is distinct from a regular financial or investment advisor in that he or she takes a holistic approach to his or her clients’ retirement portfolio. Instead of giving you a stock pick or insight on where gold prices are likely to go, a wealth manager zeroes in on the client rather than just on the market. The wealth manager combines an awareness of investment trends, experience in managing portfolios, and knowledge of tax, mortgages, pensions and estate planning and helps clients create a full picture of their financial future.

A solid wealth manager has significant experience in his or her field. A proven track record of success is important an indication of future performance. Years working in the field expands knowledge and helps the manager become more adept at applying certain strategies. In addition, the manager builds valuable connections through years of work. Some managers are independent, while others work in the financial planning segment of a large bank.

What to Discuss With a Wealth Manager

There are many wealth managers to choose from, and while it is tempting to opt for the one with the most experience and the strongest track record of success, this isn’t the only factor. Since working with a wealth manager involves a long-term relationship, it is vital that you find a manager who understands and appreciates your objectives and your investing style. That is one reason it is important that, before you meet with your manager, that you plot out what your goals are and figure out what kind of investing style is right for you. This style focuses not only on your goals but your personality. Are you a risk-taker by nature or do you prefer conservative investments? Is real estate more of interest, or do you prefer investing in stocks?

Go ahead and articulate bold plans to your wealth manager. For instance, you may want to generate enough wealth to retire at forty or fifty. Many people also want to achieve this, but a wealth manager can let you know if this is realistic or not, taking into consideration your assets and earning power.

A Full Picture of Your Retirement

A wealth manager works with you to help you generate sufficient wealth to not only cover your retirement but enable you to thrive for many years. Unlike financial gurus who sell advice but do now know you personally, wealth managers get a full picture of who their clients are as people and what their goals are when planning strategies to expand wealth. Executing your own investments is fine, but retirement requires management and nurture. The temptation may be great to rush toward a short-term solution while losing sight of long-term goals, particularly those related to retirement. A wealth manager can be especially helpful in the case of people who have started thinking about retirement late in the game or have lost money and want to rebuild their wealth. A good manager shows that it is never too late to generate wealth for retirement.

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Jeremy Biberdorf
Jeremy Biberdorf

About the Author:

Jeremy Biberdorf is the founder of Modest Money. He's a father of 2 beautiful girls, a dog owner, a long-time online entrepreneur and an investing enthusiast.

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