When it comes to investing, many people feel overwhelmed with all the options available to them. It can be especially overwhelming to try and figure out how to make your money work for you when you inherit a large sum. If you want to preserve your inheritance and reap the financial benefits sound investing can provide, it may be beneficial to work with a private wealth manager.
Here are three things you should be looking for when hiring a private wealth manager to help you invest your new fortune.
1. Look for a private wealth manager with experience.
Investing is a bit like gambling because you never know when a particular stock will gain or lose value in the market. An experienced wealth manager will be able to help you avoid taking a financial loss when the market fluctuates by making informed investing decisions.
Many things can affect the price of a particular stock, including the public's perceived value of the stock and the company's earnings record. Experienced wealth managers know how to research this information so that they can help you invest in stocks that will earn a stable return.
2. Look for a private wealth manager who understands how taxes can affect your investments.
With the tax rate on long-term capital gains and dividends reaching 23.8%, it's vital that you work with a wealth manager who understands how changes in the tax code can affect your bottom line.
Since a wealth manager is tasked with ensuring your financial health, anticipating the amount of taxes that will be owed on certain investments is an essential task a qualified wealth manager should be able to perform. As you look to hire someone to help manage your inheritance, be sure that the wealth manager you ultimately hire is well versed in the taxes that could affect your investments.
3. Look for a private wealth manager who will provide educational opportunities.
Although you might not be familiar with common investment strategies when you inherit a large sum of money, you will likely want to become familiar with these strategies in order to ensure that your money is being managed efficiently.
A wealth manager who sponsors educational seminars can be a beneficial partner. Ask potential wealth managers about the educational opportunities they provide for clients before making any hiring decisions.
Inheriting a large sum of money can feel like a burden. Opting to work with an experienced wealth manager who understands tax code and is willing to help you become better educated about your investment opportunities can help you better manage your newly-inherited money.Share