Historically, people who achieved a certain level of success have turned to financial advisors to manage every aspect of their estate – including investments, philanthropic efforts, and succession planning. In recent years, however, shifting attitudes about wealth coupled with the availability of data has led many principals to become more interested in, and empowered about, handling their own affairs in understanding what is private wealth management. Instead of engaging a financial as a matter of course, they may take the time to weigh the various factors before making a decision. One of the obvious cons is the expense. Comprehensive services are typically reserved for those of high net worth (defined as 1.5 million dollars in total net worth or seven-hundred and fifty-thousand dollars in disposable assets). Another consideration is the goals they have set for their family moving forward. Whether you choose to have an expert manage your estate, take the reins yourself, or create some hybrid of the two, an all-in-one digital solution can help you minimize risk and maximize your wealth and quality of life.
Even if cost is not an issue for you, there are good reasons to be more involved with the day-to-day management of your estate and learn what is private wealth management. First and foremost, no one (except a single-family office) will be able to devote as much time, or be as invested, in your financial well-being as you. As mentioned above, you also have the benefit of living in a time when we have access to an incredible amount of data (i.e. investment information). All-in-one solutions like EstateSpace make it easier to utilize that data because you are literally carrying your complete portfolio around on your phone. You can create a catalog of your physical assets, financial instruments, and social causes you care about, and jump on opportunities as they arise in real-time. If you are working with an advisor, this enables you to take an active role in the relationship rather than completely relying on them.
You may also want to use the management of your estate as a learning experience for your heirs. Perhaps you never talked about money with them, or maybe they showed no interest whatsoever in how much you had; now you are seeing that their lack of know-how can potentially limit their futures and erode the legacy you have worked so hard to build. EstateSpace is an excellent way to explain the reasons for your investments and whether their performance are aligned with your goals. You simply upload relevant information to the tool, share it with them, and even discuss it using the secure messaging feature. This is especially helpful when working with millennials and Zoomers, who tend to place less trust in experts and feel very comfortable consuming data digitally, rather than on paper. By meeting your children and grandchildren where they stand, you are encouraging their personal investment in the family’s wealth and setting them up to reach their full potential with regard to growing it. Bottom line: all-in-one solutions are excellent tools that support all aspects of estate management. They do not replace education or common sense, but they do support your abilities and help place you in the driver’s seat, whether you have the guidance of a professional or are going solo.