Global wealth management is a high level financial planning service offered to high net worth individuals (HNIs) seeking to diversify their investments across the globe. This service aims at creating an effective financial strategy to maintain and enhance the wealth of an investor, based on his/her risk appetite and short- and long-term financial goals.
Global wealth management services encompass strategies for:
- Asset protection
- Wealth transfer
- Insurance planning
- Retirement planning
Along with these services, investors can receive advice on investment products and services that best fit their requirements. Certain financial institutions also offer highly customized retail banking solutions, and advice on taxation, legal issues and estate planning, based on investor needs. Global wealth management services are typically offered for investor accounts that are below $10 million.
Why Opt for Global Wealth Management
Global wealth management ensures that a person’s investments are spread across the globe across regions and sectors. This enables investors to capitalize on the fourfold advantage of minimized risk, enhanced returns, tax benefits and currency valuation.
The benefits of global wealth management services include:
- The diversification of investments helps people reduce their dependence on the financial health of a specific industry or an economy.
- The exchange value of currencies is a critical factor in global wealth management. With the same investment amount, one can buy a higher number of shares of a global company expanding in a region with a weaker currency.
- Exposure to international markets can reduce the risk profile and enhance the profit opportunities of the investment. When the domestic economy is growing at a low rate, an investor can divert funds to the emerging economies and gain exposure to higher growth rates.
- There are several countries that offer tax benefits to investors. Investing in tax havens, like Switzerland, enable investors to benefit from tax rebates offered by these governments.
Financial planners deploy various investment tools, such as hedge funds and multi-currency direct and private equity investments, for global wealth management. Planners also undertake measures to secure an investor’s wealth from unforeseen events, such as slowdowns, market fluctuations, lawsuits and changes in tax regulations.