4 Essentials of a Good Wealth Management Plan

The opening up of global economies has resulted in volatile markets. Combine this unpredictability with changing economic conditions of the highly complex Indian economy, and you get a plethora of wealth management issues. Changing market conditions not only impact wealthy corporates but can also leave a long lasting effect on personal finances. People endowed with considerable wealth need a well-designed strategy to secure their interests now and for the future. Professional wealth managers can help you manage family wealth in India, paving the way for guaranteed financial independence. The blog enumerates some of the areas of expertise wealth managers in India concentrate on when designing strategies for their clients. Scroll down to learn more.

1. Protecting existing assets Any strategy that focuses on private wealth management in India should include steps to protect the individual’s existing assets to ensure their dependants have a secure future, in case of unforeseen circumstances such as death, insanity, or other medical emergency. Wealth managers suggest several measures such as opting for insurance cover, drafting a will and power of attorney, and creating trusts on the client’s behalf to secure their future.

2. Managing unexpected gains from windfalls Professionals specializing in family wealth management in India study their client’s financial standing to utilize any extra funds they gain from windfalls such as a lottery wins, unexpected inheritance of property, or unexpected gains from the sale of property or stock options. To utilize the extra funds available to the client, wealth management experts advise tending to urgent needs according to the portfolio. For example, if the debt exceeds equity for the individual, the manager will first and foremost, advise them to pay out all outstanding debts. In case, the client doesn’t have an emergency corpus, the wealth manager stresses the need to set aside a substantial amount to create a contingency fund.

3. Adopt tax reduction strategies Tax deductions can drain a substantial percentage of your income and topple your financial planning strategies; therefore, an ideal plan needs to focus on tax saving avenues. Investing in tax saving instruments such as ELSS mutual funds, PPF, NSC, and National Pension Scheme lightens tax burdens and your manager can help you utilize this avenue.

4. Chart investment strategies It is imperative to have an investment strategy to ensure availability of disposable funds that you can utilize in case of emergencies. Moreover, a balanced investment plan paves the way for a secure and comfortable post-retirement life. A professional can help you achieve these goals by advising on stock options and other financial instruments you can invest in, according to market condition. For example, if the interest rates on recurring deposits increase, the manager will advise opening an account for a fixed period to leverage the revised financial conditions for your benefit.

Conclusion Professionals specializing in private wealth management in India have access to key market information and insights. Moreover, these experts have years of experience on their side and understand the needs and financial objectives of different clients. They can, therefore, help you chart a customized wealth management strategy.