When you hear the word "wealth," your mind may automatically assume it's a synonym for "rich." But indeed, wealth and riches are quite different things. You do not need to be rich to have wealth. Really, wealth is any money that you have available to you and that you are seeking to manage responsibly. As such, you do not need to be rich in order to benefit from the services of a wealth management advisor. Here are some signs that you could benefit from meeting with one of these professionals.
1. You have more than a few months' expenses sitting in a savings account.
It's always a good idea to have a few months' worth of living expenses readily accessible in a savings account. For instance, if you spend $3,000 a month, it is smart to save about $9,000 as an emergency fund. You don't really care that this money isn't earning interest in a savings account since its purpose is to give you peace of mind and make sure you can pay for an emergency that may come your way. If you have much more than that in a savings account, though, you really need to talk to a wealth management advisor. Savings accounts earn very little, if any, interest, and your advisor can help you explore better ways to invest that money so it earns you a lot more.
2. You just inherited — or will soon inherit — a substantial sum of money.
Having a large sum of money come your way in the form of an inheritance can be exciting. However, you need to manage that money wisely so you don't end up spending it irresponsibly or investing it in funds that don't earn as much as they could. A wealth management advisor can give you personalized advice for how to use the inheritance to your advantage. This is a bit different for everyone depending on circumstances. For instance, a wealth management advisor may recommend that one person pay off debt, but that another invest most of the money.
3. Your income has increased and you're not sure what to do with it.
When your income increases suddenly, you don't always know what to do with it. Should you pay down debt? Should you invest in real estate? Is it a good time to move? A wealth management consultant can work with you to create a new and responsible budget that puts all of your now-higher income in the right places.
Wealth management consultant is not just for the right. Whether you have $10,000 or a million dollars that you need to spend and invest wisely, you can benefit from the advice of a pro.