Wealth Management is about fully utilising the wealth that you have accumulated by putting that money into investments and utilising tax benefits as much as possible. Wealth Management is a part of Financial Planning but is for those that are already confident in their financial structures and want their money and investments to generate a better return than leaving it on deposit.
Wealth management generates a better return for you than leaving money in the bank. The value of your wealth decreases over time even if you don’t touch it due to service fees and inflation. Look at the low interest rate for a deposit account compared to the inflation rate and then look at the taxes on any interest generated. In effect you are losing money the longer you leave it on deposit.
A Wealth Manager will understand that while your goal is building up capital, there will be times when you’ll need to decrease your contributions or stop them and that will need to be factored into your wealth management structure.
There are many things to consider before investing your money, such as how quickly you might need access to your money and how much risk you want to take. We’ll work with you to find the best investment strategy and advise on the benefits and risks of all the investment options open to you.
Only when we fully understand your personal circumstances and goals, will we advise on the best investment strategy. Before making an investment recommendation there are four areas that must be discussed.
Once these are discussed we will then advise on the advantages and disadvantages of various assets into which you may invest:
We normally advise our investors to spread their investment to minimise risk. Diversification or spreading your investments across asset classes is the key to building a successful portfolio. For example, the higher the Share or Equity content of an investment, then the higher the potential for return, but the potential volatility, or risk, is also greater.
As investment advisors, one of our jobs is to help you get the right balance in your portfolio through careful selection of investment products, based upon your objectives.
Wealth management works in various ways depending on the individual that you're talking to. Wealth management for one person could be preserving their wealth. For another person, it could be generating an income from their wealth. For a third person, it could be a combination of generating an income and trying to preserve it. It really depends on the individual.
Wealth Management is all about managing a client’s existing assets, their existing pensions, their existing money, and then looking at what their objectives are for this existing money. Wealth Management could also be estate planning, where somebody wants to actually keep their pension or keep their wealth and pass it on to their next of kin.
As an example, if I have a company director, and I'm giving them advice in terms of wealth management, in terms of their business, and they write me a check from their business, yes, that's an allowable expense against your business.
It's all about the individual. Wealth Management for one person could be €100,000 or €50,000, or for somebody else it could be €1 million or €5 million or €10 million
Wealth Management means you've acquired the assets already, you have a large pension pot, cash on deposit, you have assets, so you're actually managing the existing wealth that you have. financial planning would be maybe pre wealth management, you're actually putting a plan in place to get to that level of where you actually have the money accrued already.
Yes as you're paying a professional to do this work for you. if you walk into your accountant or to your solicitor, you're going to be charged a fee for their time. So therefore, we always place a value on our time. So if we’re meeting somebody, and we're giving them advice and giving them our knowledge and our expertise, there is a charge for that of €250.
Also known as Tracker Bonds these products are a very useful means of gaining exposure to certain assets such as equities/bonds/commodities while also preserving your capital.
Most of your money is placed in a long term fixed rate deposit account. This will accumulate interest to grow back to your total investment amount, thereby providing the capital protection.
The balance is the then used to pay for fees and to purchase the option on the underlying strategy.
Capital Secure products are best suited to individuals who want to preserve capital but also want the opportunity of achieving returns in excess of bank deposits.
In MBC Financial we assess the products available to us under a number of headings to ensure the investor is getting the most suitable investment.
These headings are:
If an investor takes a view that the stock markets are going to grow over the next 5 years it is possible to capture some of this growth while also providing a capital guarantee. It must be noted however that the potential returns are reduced when you have a capital guarantee.
These are open ended funds that can be invested in a wide range of shares, bonds, cash and/or property. These can be used to build a very comprehensive investment portfolio.
Before putting together your portfolio, your account manager at MBC Financial will take the time to find out how much risk you want to take in order to achieve a greater return on investment and make sure you completely understand the implications of your investment. There are 4 main categories of investor:
We offer a range of options from a relatively safe portfolio through to aggressive and speculative investments, with more risk attached, but also the opportunity of bigger returns over a smaller period of time. Once your portfolio is in place, we will review it annually to make sure you have the best performing portfolio for your needs.
You can even set up an arrangement to drip-feed cash into your portfolio over a period of time either from a lump sum deposit or as part of regular savings plan – an excellent option if you investing for a specific purpose, such as third level education for a child.
Financial Planning Standards Board
Certified Financial Planner