7 Ways Wealth Managers Can Help You Meet Financial Goals in the New Normal

“The art is not in making money, but in keeping it.” This ancient proverb shapes the very foundation of Wealth Management services. Notably, wealth management can be defined as an advisory process that incorporates and uses other disciplines such as finance, investments, and accounting for developing strategies to manage one’s wealth succinctly. It is a widely sought service that helps people develop coherent plans towards asset and estate management, financial planning, taxation, etc.

Following the COVID-19 pandemic, the demand for wealth management services has been rising steadily. This uptick can be attributed to extreme market conditions during the new normal that allowed wealth managers to strengthen their relationships with prospective clients, who were struggling to manage and utilize their finances adequately.

However, the industry is facing certain administrative and other challenges. One such hurdle is the lack of financial education among people and the subsequent loss of faith in wealth managers. This has led to a sense of insecurity in the minds of potential investors towards long-term investments.

The second major obstacle faced by the wealth management industry is the dynamic nature of the regulatory market, which is ever-evolving. There is a massive discrepancy in the level of stability of the equity market versus the bond, commodity, and derivative market, which makes the role of wealth managers even more challenging.

The third central area of concern stems from the fact that this service is known to and availed by only a particular section of the economy. Due to a lack of proper management, there is a huge proportion of wealth and assets that remain unutilized to their fullest potential.

Despite these challenges, wealth managers can help their clients reach the financial goals in the following ways –

1.Mitigation of Economic Crisis:

The aftermath of the COVID outbreak led to widespread panic and uncertainty in the minds of people. Wealth managers play a crucial role in reassuring investors about the reliability of the market and financial institutions. They can help the clients to achieve financial gains by developing personalized financial plans, assisting them to remain steady during the economic turmoil post-COVID-19.

2.Holistic Management of Assets:

One of the primary reasons people opt for wealth management is to develop an economically sound asset portfolio. The idea of what comprises a ‘good asset’ has largely changed in the new normal scenario. The post-pandemic conditions have led to more and more clients leaning towards traditional and low-risk assets, such as cash, instead of the more complex financial instruments.

Without the aid of wealth managers, it would be very difficult for people to cope with this sudden change in the desired asset structure. Wealth managers can assist clients through this transition phase and help acquire acceptable assets whilst complying with the prevailing market conditions.

3.Seek New Financial Opportunities:

The face of the wealth management industry has changed with the increasing number of industries and businesses switching to digital platforms. In response to this, wealth managers have also changed their approach and introduced new analytics and digital infrastructure to their previous methods of operation. They have secured the best of new opportunities available. This will help clients keep pace with the changing market structure and optimize the financial gains from the recent economic trends.

4.Personalize Financial Plans:

The most significant benefit of availing the services of a wealth manager is the personalization of financial plans. Each step in creating a wealth management strategy should be in line with the specific needs and wants of the client. Since face-to-face consultations are not encouraged during the new normal, wealth managers have evolved and adopted digital means to connect with their clients. This ensures that even in the absence of personal consulting, the clients will remain involved in developing financial management plans.

5.Relieve Financial Stress:

Wealth managers understand that steady monitoring of assets and finances can be burdensome for clients. Due to the unstable market conditions, financial plans have to be closely monitored and modified to secure the best possible returns. This market instability has further intensified during the post-COVID conditions. Wealth managers make things easy for clients by relieving the cumbersome task of keeping up with economic trends. Also, the managers study the tough market conditions to ensure proper wealth management.

6.Provide Financial Understanding:

There is a significant difference between being wealthy and understanding the implications of having wealth. Wealth managers help bridge this gap by making clients aware of the intricacies of their finances. Having such knowledge becomes even more imperative in uncertain times such as the pandemic situation. The right wealth management strategy helps clients to set goals and plan the future without any risk.

7.Expand and Protect Wealth:

Wealth managers act as guardians of their client’s hard-earned money. They assume the responsibility of safeguarding the finances and continually work towards expanding their wealth through investments in shares, stocks, and other financial instruments. Wealth managers have adapted to the new times and successfully devised new methods to ensure financial stability.

From the above discussion it is clear that if wealth is acquired without adequate measures to manage it, optimum gains cannot be realized. Also, the global economy and financial structure might continue to remain unstable, going forward. Considering this, the role of wealth managers cannot be ignored. A proper wealth management strategy is required to understand the market better and reach financial goals with ease.

About Xanara

Xanara is a private banking and wealth advisory focused on developing and implementing transparent and client-centric, financial solutions that are backed by expertise. We understand the weight of our solutions and act with the utmost care, resilience, and most importantly, integrity.