The ‘big apple’ is a city that has become well known for a great number of industries and niches that make it one of the country’s (and world’s) most popular city destinations. With upwards of 8 million residents, New York City is the 1st largest city in the United States and one of the largest hubs in the country for business and commerce. The city is a center for banking and finance, world trade, real estate, advertising, insurance, theater, fashion, and much more.
A Closer Look At The World’s Financial Mogul
Wall Street’s location within New York is no coincidence, as finance is one of the most important industries within the large city. NYC is viewed as the country’s headquarters for the entire US financial industry and as such houses the headquarters of many fortune 500 companies. Both the New York Stock Exchange and the NASDAQ are located in Lower Manhattan, which are the 1st and 2nd largest stock exchanges in the world, respectively. The success of the financial industry in New York on the global stage is made possible through the size and development of the US economy. To this day, New York City is the largest global center for public equity and debt capital markets.
With so much business centered in one (relatively) small area, NYC has attracted a large amount of high earning business professionals. As a national and global center to business activity, the city beckons many young professionals and entrepreneurs to join the several individuals and business entities who have found success within the excitement of development in this urban center. The city has taken a particular focus on entrepreneurship, especially within the tech industry, given that the city leads in hedge fund management, private equity, and monetary volume of mergers/acquisitions.
The Importance of Wealth Management for Rising Professionals
One thing that’s for certain as a rising professional or entrepreneur in New York City: time is a scarce and extremely valuable resource. A plethora of time, energy, and resources are spent on the never-ending processes of ensuring that you achieve the goals you have set for yourself as a professional, or as a business owner. The time you spend is valuable time that’s spent working toward establishing your presence as a successful and financially robust entity in a city that ‘never sleeps.’
With the ever-increasing complexity of finance, it may be the case that the amount of time or expertise you have working with your finances leaves some desired improvement. Even in circumstances with individuals who have a good understanding of their finances, the amount of time required to successfully manage and keep up with their finances is an investment of time that could be better spent in other ways including your professional development. Additionally, with the ever-increasing number of duties piling up on your lap, it is not uncommon for financial planning or maintenance to fall to the wayside.
In reality, your finances are one of, if not the most important aspect of your continued success as a professional. Utilizing the professional expertise of a wealth manager or financial advisor is a choice that could not only save you time, but provide you a better chance of bringing your financial goals to fruition in line with your continued growth as a professional. More specifically, since NYC is considered to be one of the largest centers for finance and business professionals in general, it can be extremely impactful to take advantage of the quality services that are offered in a locality that is known to bring financial success as a result of the immense opportunities for growth within the geographical region.
Options For Wealth Management
To better understand the impact that wealth management services can have on your finances, it’s essential to have an understanding of what options are available to clients. While the name is rather self-intuitive, it’s not until further examination of the services that wealth management professionals can offer that we have a comprehensive understanding of the great change hiring an individual could make for your financial situation.
Account Maintenance and Goal Achievement
Wealth management professionals will begin by talking with you about your current financial situation, as well as your future goals including when you’d like to retire, large purchases/investments you’d like to make in your life, or goals you have in saving for your children’s education, etc. With a comprehensive understanding of your current financial standings and the places you’d like to go in the future, your advisor will help devise a plan that considers all your specific needs, with the current assets that you have and will continue to accumulate.
Personal Risk Assessment
Through an agreement upon the client’s goals, a plan can be put in place that allows your wealth manager to access your various accounts, as well as the structure, and monitor them to ensure the best possible return for their client. Additionally, clients can expect to be assessed for their ‘risk tolerance’ level when investing. This assessment communicates to your wealth manager the type of investments you’d like included in your portfolio based on your risk-to-reward ratio.
Depending on the amount of risk you’re willing to take for a higher reward with your investment, your wealth manager will work with you to place you into a selection of investments that make you the most comfortable. This assessment is completed to understand how a client might behave when the market makes an inevitable downturn from time to time. If clients aren’t comfortable with incurring some amount of loss in the short term, they risk losing a large number of their assets if pulling out of the market is timed incorrectly.
Other Benefits of Working With an Advisor
More than just managing your assets, your advisor will help you to structure your money and accounts to receive the most return that you possibly can. Often, professionals aren’t sure the exact amount of money they should be keeping in their checkings, savings, or brokerage accounts. Wealth managers can also help establish healthy patterns for budgeting, understanding how much money you should keep liquid on hand versus how much should be invested, as well as putting an investing strategy in-place.
A largely underlooked perk to working with a wealth manager is that your finances take many different shapes and forms, and therefore they can provide insight when it comes time to make decisions that will impact your finances. This can include advice on events such as insurance changes, employment and account transitions, mortgages, costs related to education, and any other question that may come along the way. What is the best interest to you and your long-term sustained wealth gain, is in the best interest of your advisor.
Why You Should Be Working With A Financial Advisor
Both in circumstances where individuals have a pretty good grasp of their financial situation, and situations where individuals have room for improvement, the benefits of having a financial advisor should not be understated. Just like any other professional industry, those working in wealth management undergo certification processes that ensure they can be trusted to manage your money. This process of certification also ensures that your advisor will approach your finances from angels you hadn’t considered on your own.
The ins and outs of finance can become rather technical, so working with an individual whose job it is to grow your wealth ensures that no stone is left unturned. This prevents untrained professionals from making potentially detrimental decisions with their money that could undermine many years’ worth of working towards particular goals.
Financial Expertise in Wealth Generation
Another important aspect of your relationship with your wealth management advisor is that they have a legal, fiduciary duty to make decisions with your money that best benefits you. This means that no circumstance could arise where your advisor abuses their power over the management of your financials because their salary is directly tied to the success of your investments. Most financial advisors will charge a wrap around fee on your account, which means taking an annual percentage of your total assets (usually somewhere around 1%). Since their salary is increased by generating wealth, it is in your wealth managers’ best interest to make decisions that best benefit the growth of your account.
Since we work so hard to earn our money, it’s not uncommon for the emotional attachment we have to our money to lead us into making decisions that are not advantageous. Behavioral Finance is the study of how consumers psychologically act in context to their money, and how understanding certain mental challenges associated with the versatility of our investments can lead to better decision making with our finances. Wealth management advisors have a good understanding of these forces and therefore can help guide their clients into making the best decisions with their money as possible in order to avoid great losses influenced by the human propensity to do anything we can to ‘save’ our money.
As a growing professional or business, you shouldn’t need to be watching your accounts like a hawk. You have plenty of other obligations: with proper time allocation, you will certainly recognize an increased accumulation of professional experience and monetary growth. Your current wealth should reflect this growth as well. By employing a financial advisor, you can ensure that your investments are taken care of while you grow your career, ensuring that when it comes time to enjoy the fruits of your labor, all your financial goals will have been fulfilled.
Work With Client Focused Advisors
Client Focused Advisors was founded in 2012 to use a team approach to help individuals, families, and businesses manage their wealth and offer protection strategies. We are proud New York advisors who want to help New York and its people continue to thrive! Contact us today to see how we can help you manage your wealth.