Private Wealth Management

 

Finding the right private wealth management firm or manager is crucially important if you want to see your wealth grow safely. The fleecing of clients in "retail banking" is unfortunately common, but you can use these 5 tips to make an informed choice.

1. Do you really need a wealth manager?

Often what people are really looking for is a way to trade shares and other financial instruments. In this case, a reputable online brokerage service could make more sense.

2. Find out who will actually be the one managing your wealth

The jovial middle-aged gentleman you had lunch with may be delegating the majority of his client-work to subordinates who may not have the experience to execute your transactions accurately. Look for concrete formal qualifications and training (e.g. CPA, CFA).

3. Think about the type of wealth management firm you want to invest with

The private banking arms of large well-known banks will often have better facilities, in-house trading teams and analysts for a large variety of sectors all resources you can use to your advantage. The flip side is that advisers may always lead by suggesting the bank's own investment funds to financially inexperienced clients, regardless of whether they are the best performers. If you are thinking of investing in a certain area, a smaller private bank with experience in that region may give you superior service.

4. Check the small print

While the entry fee may be less than you expected, keep an eye out for "hidden fees", like percentage charges for entering a fund. Unscrupulous advisers may suggest changing funds 3-4 times a year, picking up a bonus at each turnover. This is how many of the large private banking services really milk their clients.

5. How financially secure is the bank?

For some investors, the priority is not so much to grow their wealth, but to not LOSE money. Seek opinions from multiple sources on the bank in question. If your wealth is to be invested in the private bank's own funds and financial instruments it pays to research its financial health. Similarly, check if the bank has pending compliance or regulatory issues.

If, like many, you just need a secure, private place to park your money with access to financial tools "self-directed" Private banking can save you a great deal. 

What does "self-directed" private banking mean? Its the same personal attention and quality of service you would get from a traditional private bank account, except you are in charge of investment choices. The wealth managers will execute your orders, but not advise to buy/sell, or otherwise touch your account without your express permission.

Improve Your Time Management Skills

Time management is a skill that many of us seem to learn through necessity. The problem with learning a skill through necessity is that, more often than not, bad habits creep in and, although the skill may be useful in general, we do not use it to its full potential. 

1. Make Lists

Write as much down as you can. If you don’t carry a planner or notebook already, start. Always preferred a small, simple, white-lined notebook because you aren't restricted by the various boxes and lines of the average planner.  

2. Make Use of Down Time

Using walking, driving, showering, or otherwise “dead” times to plan. Think about what your goals are for that day or the next. Which goals are most important ? Prioritization is the key. 

3. Concentrate on One Thing 

The human mind works more efficiently when it is focused. As we’ve seen before multitasking is actually a disadvantage to productivity. Focus on one thing and get it done. Take care not to bleed tasks into each other. At times, multitasking may seem like a more efficient route, but it is probably not. 

4. Avoid Procrastination at All Costs

When trying to be more productive and trying to save time, procrastination should be avoided like nothing else. It is the ultimate productivity-killer. 

5. Set Personal Deadlines

Nobody likes deadlines. They cause stress, aggravation, worry, and, more stress. A guaranteed way to alleviate some of this stress is to set your own earlier deadlines. Be realistic but demanding of yourself.  Not only will this save you time and make you more productive in the long run, but you will also have a buffer time with little to no penalties compared to those received for missing a real deadline.

6. Delegate Responsibilities 

It is not uncommon for people to take on more than they can handle. The overestimation of one’s abilities, though not necessarily a bad thing, can often result in stress and more work for an individual. To avoid this unnecessary stress, do not feel bad about delegating tasks. 

7. Set up a Long Term Planner 

In the everyday drab of life, we can often lose sight of our goals. Setting up a long term planner will help you envision your long term goals and rationalize your current objectives. Revise this long term planner monthly to keep goals up-to-date.  

8. Work in a Team

Make sure the team goals are clear and make sure everyone knows who is responsible for given tasks. Make sure all lines of communication are always open. A clogged or blocked line will have the opposite effect on productivity. Give tasks to those who are best suited for them and things will get done faster. 

9. Be Careful to Avoid Burnout 

Burnout occurs when your body and mind can no longer keep up with the tasks you demand of them. Don’t try to force yourself to do the impossible. Delegate time for important tasks, but always be sure to leave time for relaxation and reflection. Review your recent accomplishments and make sure you feel good. Review and reflection is one of the best ways to gain confidence and higher confidence means more productivity.