How to Manage Your Personal Wealth in the Modern Age

How to Manage Your Personal Wealth in the Modern Age

Under the watch of recent governments, we have seen the state pension age rise incrementally for both men and women. In fact, the last government laid the foundations for the pension age to rise to 68 for both genders by the year 2030, while David Cameron’s Tory party have expedited this timetable further.

What does this mean for us working folk, slaving away at our places of work and gunning for those golden years where we’d finally experience some respite?

Well, one of the most important implications that comes to mind is that it is now all the more important  that anyone with at least a viable level of disposable income must make plans for their retirement. You absolutely must take proactive approach to achieving your own financial goals.

While you don’t need a degree in investment management or even an understanding of the economy, the truth remains: there is simply inadequate education on money management and retirement planning today.

That’s why in this article we will begin to give you some some ways in which an earlier and more comfortable retirement can be achieved:

1. Partner with an Expert Service Provider

Risk vs reward – it’s an age old concept that is simple to grasp in theory, but so difficult to practice in real life.

Generally, when creating a retirement portfolio, the risk and reward characteristics of all your asset classes, and individual investments must be taken into account. Complex software and formulas are used by professional advisors to determine the optimal mix of investments to achieve your financial goals.

It’s all fine and well to try and learn these skills on your own. But how much would you trust yourself to make the right decision compared to a specialist investment company that has years of combined experience? That’s right, we’re saying that you should always seek professional advice.

Regardless of your precise goals, this should be your first step in the quest to build your wealth. 

With the rise of machine learning and AI technologies, there has been a growing interest in robo-advisors. Yes, robo-advisors make sense if you’re looking to go cheap. However, the current economic climate is so complex and diverse, it is exceptionally difficult to achieve long-term gains without the insight of leading industry experts. Furthermore, it’s very difficult for AI advisors to take into account your risk appetite, individual retirement goals, current financial status etc.

At this time, the job is still best left to a human face.

Take a well known firm like WHIreland, for example. Their service is built on the bespoke needs of each individual client and investor. This means that options can be tailored depending on your experience, outlook and existing wealth, while you can also build a portfolio that accurately reflects your risk profile.

This is crucial when planning your retirement, as it means that your hard-earned capital is leveraged and safeguarded in equal measure.

2. Target Investments That Suit Your Knowledge Base

Even with a third-party wealth management service in your corner, it makes sense that you target investment options that suit your existing knowledge base. This can provide you with peace of mind, while also affording you some control of how you leverage your capital in the real-time economic climate. 

One big advantage of being able to invest using your own industry-specific knowledge is that you can save on some professional management fees in your area of expertise. This is because you’ll be handling your own investments in this area.

Above all else, it means that you contribute to the management of your own funds and make key decisions relating to short or long-term options, which may prove invaluable in such a changeable economy.

3. Seek Out Additional Options to Suit Your Outlook

If you do decide to partner with a wealth management service, it makes sense that you should capitalise on the full range of options that they offer to clients. While all firms offer core investment management services, some augment these with specialist solutions including IHT and EIS tax efficient options.

These help to ensure that your capital goes further, while optimising your gains over a set period of time. In fact, tax efficient investment options are increasingly important in the modern age, while they will continue to serve a crucial purpose as economic uncertainty continues to rage.

Conclusion

Whatever your current financial situation, you have to operate with the end in mind. To experience a comfortable retirement and enjoy your golden years, you need to plan ahead. Some level of investment and portfolio management knowledge will take you part of the way. Automated robo-advisors can take you further. But in our view, only professional retirement services can help you build a robust nest egg for your retirement years.

Make your decision wisely!

What do you think about using professional investment management services? Is it necessary or nah? Let us know in the comments below!