What does Wealth Management really mean?
Updated: May 9
Management is a fairly well understood concept however it is the word Wealth which seems to create the most confusion or difference of opinion. Most will agree that your investment portfolio would be considered your wealth. In reality this expands to include all assets that a family owns. Such as your home, cottage, vehicles, collections, businesses, etc… But does wealth stop there? We would argue that your wealth also includes the people within and close to your family, also known as your family’s authentic wealth – intellectual, social and human. You may not be able to place a dollar value on this portion of your wealth, however it certainly holds worth.
Sound stewardship of private wealth is the result of hard work, family cooperation, maintaining high standards and the consistent use of best practices. Working with a trusted advisor like Northland Wealth Management, who have extensive experience in all aspects of the stewardship process, from tax efficient investing to the appropriate family governance structure, reaps significant benefits for family clients. Northland Wealth Management offers solutions that manage clients’ individual mandates as well as ensuring that their overall needs and goals are always considered, addressed and met.
A “wealth manager” must integrate a larger number of factors and, therefore, an exponentially larger number of possible interactions. Consider a possible list of the issues facing a wealthy family: financial assets, taxes, cash flows, estate planning and execution, philanthropic planning and execution, family roles and governance, family education, family risk management, family values, and many others.
Some examples of Integrated Wealth Management services available to our clients include: • Personal and continuous review and consultation to ensure that individual long-term goals are met as well as integrated with the overall family strategy when both appropriate and advantageous
.• Detailed cash flow, income, asset and liability analysis based on key personal and actuarial assumptions to allow for a true understanding of the families financial situation
.• Retirement scenario projections and required rate of return analysis after tax and inflation.
• Consolidation of net worth and income statements along with analysis of key debt and cash flow ratios as well as the inter-relationship of the family’s liquid assets, management of a family owned business or other fixed assets.
• Personal and corporate cash management with vendors and tax authorities in a Family Office context.• Estate planning for optimum asset protection and tax efficient transfers of wealth
.• Risk assessment and management through the implementation of mitigation strategies and insurance planning.• Open and discrete consultation on closely held business issues
.• Development, planning and execution of family foundations and tactical philanthropic activities
.• Family dynamics and intergenerational issues.
• Family financial education programs for all generations. • Team approach to portfolio and relationship management incorporating access to external professionals.
It becomes apparent that integrated wealth management involves much more than simply managing your portfolio, or what is known as asset management. This does not mean that asset management is not important but it highlights the importance of looking beyond your investment portfolio to ensure that they are receiving a fully integrated solution and truly have their wealth managed. These services differentiate Northland Wealth from other investment firms in Canada solely on the premise that we address a wide variety of issues in relation to both your financial and authentic wealth.