As financial technologies and products advance, the variety of investment options continues to grow. Furthermore, personal finance continues to expand as money management becomes more intricate. For those that have money and assets that need managing, taking the time to find a private banker to work with will pay dividends. A private banker not only helps with investing, but also can assist with estate planning and other financial related topics that will impact your assets for generations to come. That being said, here are a few reasons why having a private banker is important.
If you find yourself with several different assets that are concentrated, your private banker can assist with asset diversification. Diversification is critical to wealth management as it helps to normalize risk and preserve your capital.
A private banker can analyze your currently holdings, whether it’s real estate and stocks, bonds or commercial property, and asses where you may be over exposed. All it takes is another financial crisis like 2008 to greatly impact your portfolio.
A second reason to have a private banker is to maximize your tax advantages amongst your various holdings. Tax laws in the United States can be technical and without proper knowledge, can lead to missed savings.
Beyond complex tax implications, it could be something simple as deciding if a Roth IRA is appropriate over a traditional. The tax bill on mismanaged assets can be large but with the right plan in place, you can save money as your wealth builds.
Peace of Mind
The third reason to hire a private banker is allowing yourself to have peace of mind over your assets. Depending on your situation, if you have a large number of assets it can be difficult to manage everything, ensuring it’s working a efficiently as possible. Stocks perform differently than real estate, and when it comes to tax time they likely require very different forms.
A private banker can take all of those worries off your mind and ensure your wealth is being managed correctly. It’s important to find a private banker that is transparent and can always be reached, especially if they are managing your net worth.
Other reasons to have a private banker include managing your assets after you’ve passed on. Also, should your assets be in a trust, you can have your private banker be an advisor to your estate.
Private banking may seem unnecessary but that is untrue. As you continue to build your assets and build wealth, you’ll want someone managing your portfolio and ensuring it is working efficiently. From there, you can allocate your extra time elsewhere and continue building wealth or giving back to the community.