Christian Wealth Management Services

Banks, financial advisers and brokers offer Christian wealth management services to affluent clients who require special service to manage sizable assets. Individuals and business owners who have accumulated or have begun to accumulate a certain amount of wealth sometimes prefer to hire a financial organization to help grow, maintain or protect investments and money. These affluent clients, often called upper retail clients, are primarily interested in long-term management. However, for these programs to work, customers must already have developed a significant portfolio. Some wealth management services will accept clients with assets over $500,000. Others require a minimum of one million dollars to qualify.

Most wealth management services offer financial planning programs and special services tailor-made to the needs of important clients, but these organizations also offer customers access to specialists in many forms of financial management. Professional brokers are right on hand to offer estate planning, helping customers transfer wealth and private businesses to the next generation. Brokers will also set up annuities, mutual funds, 401K programs as well as lead customers through the maze of investing assets in various stocks and bonds. Certified public accountants (CPAs) give income tax advice and help with filing annual taxes, making the most of available deductions. Attorneys provide legal resources and advice on the release of funds at retirement. Organizations also connect clients with financial counseling services to help each individual or business make the best the decision according to individual situations, including advice on philanthropic and political giving, obtaining insurance, managing cash flow in a family business or risk-taking. Some firms will even help investors secure high value investment items such as art, wine, or precious metals.

Some ultra high-worth clients prefer to use family offices instead of larger corporations for their wealth management services. Family offices are privately owned firms and typically offer a complete realm of expertise to their clients. By utilizing consultants, databases and other analysis tools, these firms are more focused on the needs of wealthy individuals than massive corporations can be. Family offices come in two forms: single-family and multifamily firms. Single-family offices focus on one wealthy family. While multifamily offices have multiple clients, they normally do not accept as many customers as programs offered in a larger corporation. There are only about 3,500 family offices in the United States.

Regardless of where a client chooses to hire wealth management services, the process is typically the same. Professionals take time to get to know the client, family business, personal issues and assets. In the review, many things are taken into consideration. Customers must determine financial expectations, consider a time line toward retirement, and decide upon a level of risk that is comfortable yet yields the return they hope to achieve. Consultants will work together to establish as asset allocation plan using investment methods appropriate to meet the client's specific needs and situation. This detailed and comprehensive plan will provide the road map to the client's financial future. Professionals will establish investment accounts to maximize a client's wealth and utilize tax benefits legally for retirement. They will continue to manage the portfolio on an ongoing basis, changing it as the client's situation and risk tolerance level changes.

Jesus taught his disciples the benefit of managing money effectively. He told the story of a man who left his finances in the care of three servants. Since there were no wealth management services in existence during that era, the three servants were on their own. "Then he that had received the five talents went and traded with the same, and made them other five talents." (Matthew 25:16) In Jesus' era, a talent was worth twenty years savings. This servant doubled his boss' money and was rewarded for it. People who have amassed significant funds want to do the same with their savings. It does little good to hide money under a mattress when it can grow and thrive in investments, mutual funds or high yield retirement accounts. Of course, doubling finances is not always possible, some people do make solid financial decisions that can double, triple and even quadruple what they have earned if managed properly.

Wealth management services soared in popularity during the 1990s. Banks, insurance companies and brokers began offering these programs for individuals who became wealthy quickly and needed to hire an outside organization to manage it for them, freeing up time to pursue other personal and business-related issues. At the same time, as baby boomers aged, many of them needed help to financially prepare for retirement, which was quickly approaching. Around the world, the upper class was growing in number - especially in emerging economies - increasing a demand for such specialized services. In 1999, the Glass Steagall Act enable banking, insurance and brokerage services to be handled under one office, increasing the number of firms focusing on wealth management and enabling them to become more profitable.

Although many people confuse wealth management services with private banking, the two are not interchangeable. Wealth management programs help clients establish and manage portfolios that are profitable for individual goals. Individuals and business owners who already have their wealth being managed may eventually move towards private banking which will consolidate management programs under one firm. Although growing wealth can be an exciting endeavor, it is an incredible responsibility. Hiring a firm to help can help individuals and business owners become better stewards of the gifts God has given them.

Christian Wealth Management Firm

Using a wealth management firm to help plan, secure and grow an estate worth over five hundred thousand dollars in value is a logical decision for the wise money holder. Issues such taxes and investments have become so complex that making them all work for the customer's benefit has become the supreme challenge and mission of the wealth advisory firm. Interestingly enough, the makeup of financial management firms are varied with a one size fits all approach not embraced. Often, those firms with specific packaged programs to sell their clients may not have a staff that is varied in experience and expertise since the program is supposed to have the expertise. In those cases, a one size fits all approach is effective for those with smaller sized estates. Conversely, large moneyed estate owners need the resources of private banking experts, tax attorneys and investment working together to produce a financial symphony to which even Tiny Tim could have sung.

In many cases for the smaller estate owner, the client can use the resources of a bank to secure all the needed resources that otherwise might be given to a wealth management firm. Banks can offer their own financial management programs that will address most of the concerns of the average client. If the estate is relatively small, a personal banker can be introduced that will be the concierge to the rest of the bank's product offerings. Finding the legal help, the right investment counselor and perhaps even the right real estate advisor can be part of the job a personal banker can do for clients. In the case of the average moneyed consumer, this alternative approach to a wealth management firm can be appropriate.

For the bigger estates, the use of a wealth management firm is critical. Consider first the tax implications for such a person. The average Joe Schmo has taxes taken out by a human resources department and not much thought is really paid to ways to defer or lower them. The fortunate person who may be making ten thousand dollars or more a week needs tax shelters, tax deferments and strategies so that the entire paycheck is not subject to a forty percent rate. A top rated management firm will retain a resource person, perhaps even a tax attorney who can provide the most beneficial and legal ways to deal with such issues. Take heed however because Jesus warned those blessed with an abundance of riches. "Verily I say unto you, that a rich man shall hardly enter into the kingdom of heaven." (Matthew 19:23)

Consider also the incredible wisdom needed to direct someone in the area of investment strategies when that client possesses so many available financial assets. With investment houses and insurance companies falling like dominoes, only a person wholly devoted to the understanding of all the intricacies of investing could begin to advise someone with large caches of discretionary money. Many hanging out the shingle labeled "Wealth Manager Adviser" represent only a single company that provides for all the advisers' cookie cutter products. A single size fits mentality is great for socks and hats, but not for a client that owns three residences, has two children in Ivy League schools and wants to retire at fifty-two. Only a wealth management firm that can address all of a client's very personal and individual needs with seasoned financial pros is equipped for such a task.

The one exception that might qualify a lesser income (it's all relative, remember) family for the highly qualified skills of a wealth management firm is the couple who is going through a divorce. Sharing one very profitable plan that threatens to suddenly become one that is torn in half may not be the best thing for either party. Certain assets that are better left undivided and others that could immediately be liquidated are issues that a wealth management firm, in concert with all attorneys could work out. With a firm such as this sitting in a neutral position representing two clients they do not wish to lose, plenty of incentive is present for a win-win.

The big obvious here is the fact that a wealth management firm will not come cheaply. While it is not a hard and fast rule, financial advisers representing one company will probably work on a commission basis. In most cases, the cost of financial management products that are sold by an adviser will have the commissions included. A firm that helps manage a person's or estate's financial matters may work on a commission basis, an hourly basis or a combination of the two. Part of choosing such professionals should include the examination of the fee schedule. Make no assumptions and ask every question until the fog has lifted.

So a Christian is ready to choose a financial firm to manage his estate. He has asked attorneys, presidents of banks, the Chamber of Commerce and the Better Business Bureau for background information and references on the firm under consideration. All the reports come back with a positive spin so the appointment is made and an interview is scheduled. That's right; the client is going to interview the firm. When all parties are seated take stock in what's happening in the room. Is the client getting good, comfortable vibes from the staff or does it somehow feel like making a sale is the most important issue? Does the client truly feel that he can take strong and sometimes complicated advice from this group of people, or is there a sense of unease?





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