Financial Planning Consultants

Financial asset management is something that must be done properly especially for high net-worth individuals. Financial planning consultants will help you with a particular issue.

What are financial planning consultants? They are those specific individuals or firms whose goal is to help clients with financial asset management and asset protection. In civil money judgments, consultants will help you insulate and protect any assets from the claims of creditors without illegally concealing the assets or committing tax evasion.

Using a Financial Planning Consultant

A type of financial planning consultant that has phased out traditional brokers is a Registered Investment Advisor (RIA). An RIA is a person or a group registered with the SEC (Securities and Exchange Commission) for the purpose of managing the assets of individuals with high-yield returns and investment institutions. RIAs work on the buy side of the market and provide clients with a better and more detailed service than previous brokers have done.

Financial planning consultants of this sort may also offer advice and consultation on these areas: investment ideas, retirement plan rollovers, life insurance, estate planning, education investments, and long term care insurance.

Financial planning consultants are useful to have when you need help with hedge fund due diligence before buying hedge funds. Hedge funds are investments made in an aggressively managed portfolio which caters to sophisticated investors. They are private investment partnership with a limited number of investors allowed. Because of this, they are unregulated though they are required by US laws to have accredited members. Accreditation, in this case, means that they must earn a minimum amount of money annually and must have a net worth of $1 million along with actual investment knowledge. Think of hedge funds as investment clubs for the rich among the rich. In fact, just looking into hedge funds requires you to have the capability to buy in. Information is so strictly circulated that you either have to be a registered investment advisor first in order to acquire it.

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Hedge Fund Consulting

Hedge funds are a lot of work for financial planning consultants. Hedge fund due diligence, as mentioned before, requires one to have the proper credentials even if the inquiry is only a token look. There are different investment strategies, preferences, and risk tolerances for every person and group so taking them all into account just to give advice on a hedge fund can be daunting. In an effort to help with simplifying or laying down the basic of hedge fund diligence, the SEC has posted a few guidelines on their website:

  1. Read a fund’s prospectus and other related literature.
  2. Understand how a fund’s assets are valued.
  3. Ask questions about fees.
  4. Understand any limitations on your rights to redeem your shares.
  5. Research the background of hedge fund manager in order to determine whether throwing your lot in with them is really what you want.
  6. Don’t be afraid to ask questions because hedge funds are complicated.

Financial planning consultants are essential for investment and asset protection so don’t limit your dealings with them just for hedge funds and civil suits; they may also help with more normal dealings and can help your earn significant returns on whatever investments you’ve made. Remember, these are people trained and certified for these kinds of things. They probably know more about financial asset management than you do, so take their investment advice seriously.

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