7/28/2022 - Economy and Finance

What is Wealth Management?

By Roman Gutierrez

What is Wealth Management?

“Wealth Management” is a set of processes, knowledge, experiences and learnings for the creation, growth, management and preservation of a family or personal heritage. Building, managing, growing or simply preserving a heritage in time requires planning and good financial, legal, fiscal and investment decisions.Some of the competition areas are:

  • Suitable legal structures for investment
  • Titularity and asset management
  • Impact of the tax regime on investments
  • Jurisdictions and legal framework
  • Financial Planning and Protection
  • Successful planning
  • Investment vehicles
  • Investment and diversification strategies
  • Risk Management
  • "Family Offices" for large family estate
  • Financial control
The basis of patrimonial management is financial planning and successor. Medians, great assets (High Net worth Individuals), small business owners, successful entrepreneurs, professionals, artists, athletes with excellent income, personalities, and families who wish to strengthen and grow their finances, require this professional tool, and support from a financial specialist who knows of banking, patrimonial planning, legal resources, tax, know how to develop a process and investment plan, in addition to contingent strategies for preservation and heritage shielding.

This professional should support you with strategies to improve and strengthen your revenue, optimize your appropriations, generate better patrimonial growth and obtain a favourable tax treatment of long-term investments. In Argentina, recently, the figure of the Global Investment Advisor (AAGI) was recently approved, which certainly worked in this business and service segment.

In the general investment process The “Wealth Management” comprises 5 fundamental edges:

  1. The definition of the objectives jointly with the client, in which aspects such as objective return and risk budget are concerned; the investment horizon, liquidity and restrictions, and identification of family financial needs.
  2. Alternatives for the management and custody of your assets.
  3. The joint choice of the strategy that best suits your profile considering your personal and professional situation, values, goals and level of risk tolerance.
  4. The investment according to the defined strategy, using tools and methods in decision making.
  5. The follow-up of your portfolio, including comprehensive reports with transparent information and joint valuation of patrimonial management and investment performance.

Revenue management and asset transmission

The best tool to increase family heritage and give financial protection to your loved ones is universal life insurance. In this context, it allows you to have a cover against risks that would sharply affect your family heritage and at the same time build savings bases. In some cases, it offers advantageous legal and fiscal conditions.

Among the “veicles” used are also the companies IBC and fideicomis or trust, which allow (each with its characteristics, advantages and disadvantages) to suit the ownership and administration of the assets, give confidentiality and guarantee the permanence and successful and impositive planning. This aspect is also relevant to family businesses.

Other important instruments Private retirement or pension accounts where you can hold a capital in the medium and long term to undertake, travel, cost the higher education of your children, grandchildren, or simply finance a comfortable retirement.Finally. use credit or family leverage smartly and responsibly, and optimize expenses, have just set up the set of a suitable financial planning structure, dynamic and adapted to the complex financial times we live.

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roman gutierrez

Roman Gutierrez

I help people organize their personal finances and investments. I am passionate about entrepreneurship and stock markets. I have 26 years of experience in the Professional Investment Administration. I am a Venezuelan consultant based in Buenos Aires.

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