Financial situations where you might need a wealth manager

One of the main benefits of a modern wealth management service is that they offer expert guidance for a variety of financial situations.

Read below, where we’ve picked a few examples of financial scenarios in which investors might find themselves in, and how a wealth manager can help.

Planning for retirement

A highly common situation where investors can seek wealth management is when they’re approaching retirement.

Your wealth manager will have vast experience in retirement planning, as well as the different processes, tax rules, and tips necessary to make your approach as effective as possible.

For example, they can help your plan your pension contributions throughout the tax year, to shelter as much of your money from tax as possible. They can make you aware of the annual pension allowance - £60,000, as of the tax year 2023/2024 – and how you can make the most of it.

They can advise you on making the right contributions at certain times, to both grow your wealth towards your retirement goals, but also align your investments with your current circumstance.

They can also help you explore other investment options to grow your retirement savings, such as Individual Savings Accounts (ISAs) – including a cash or stocks and shares ISA, for instance.

Navigating a divorce

If you’re navigating a divorce, your financial adviser can help you protect your wealth and make the right decisions for you.

There are many emotional and financial impacts of a divorce, and your adviser can make sure you consider every option and prepare every aspect of your finances for the process.

For instance, they can help you through aspects of your settlement, such as your pension assets for example.

Your adviser’s knowledge can guide you through the right approach, so you have sufficient wealth resilience when navigating your divorce.

Building your children’s wealth

Many investors want to start building their children’s wealth for the future, and wealth managers can be great for this.

Your adviser can help you establish the goals you have for your children, and then recommend the type of investments necessary to achieve them.

They can help you open a Junior Individual Savings Account (JISA), for example, where you can grow your child’s savings tax-free. The allowance on these accounts is currently £9,000, and your adviser can help you make the most of this allowance each year.

This means when your child is able to access these funds, once they turn 18, they can have a significant sum to go towards educational fees or property, etc.

Leaving an inheritance

A modern wealth manager can also help you when leaving an inheritance for your loved ones. This is when you pass your wealth down after you pass away.

Your adviser can help you structure your estate to be sheltered from Inheritance Tax (IHT) as much as possible. This can include cash, property, investments, trusts, personal items, and more.

Your wealth manager can help you make the most of your £325,000 IHT threshold, such as leaving your home to your children to increase your threshold to £500,000.

Also, they can help you understand how giving gifts before you pass away can further help you leave your wealth behind tax-efficiently.

With a wealth manager by your side, you’ll have everything you need to leave your inheritance behind in the right way for your loved ones, to make the process simple and beneficial.

Are any of these financial situations similar to yours? Or is your circumstance different? Either way, contact your modern wealth manager to see how they can help you navigate your finances through your situation.

Please note, the value of your investments can go down as well as up.