How Wealth Management Benefits Private Investors in Houston

Although all high-net-worth individuals can benefit from having access to a team of trusted wealth managers, for Houston private investors, access to strategic wealth management is invaluable. 

Houston private investors must weather the complex and fickle nature of the market, and therefore often shoulder significant amounts of personal risk with each investment that they make. Good wealth managers are not here to tell private investors what to do with their money, but instead to act as a shield against unnecessary risk, a warning call for changes in the financial wind, and a shrewd eye for tax efficiency and necessary adjustments on the back end. 

1. Risk management strategies

Any investment carries risk, including typical market volatility, risks of entrepreneurship, heavy tax liability, and so much more. Private investors know better than anyone the risks associated with investing, and should also therefore know how vital a comprehensive risk management strategy is. Some of the most important components of a quality risk management plan include the following:

1. Clearly identified goals. In order to determine how much risk may be appropriate for your investments you will need to have both some defined endpoints and time horizons for those endpoints. Someone looking at retirement in a few years will likely be much more risk averse than someone planning on actively investing for the next 25 years. 
2. Clearly identified risk tolerance. Your age, goals, income, and time horizon will allow you to determine how much risk you’re willing to take on, and help you define what for you looks like too much risk.
3. Active management to mitigate risk. Once you have a plan in place you still need active monitoring to mitigate risk. This active monitoring often includes reallocating, buying, and selling as opportunities mature and markets change. 

Comprehensive risk assessments should be regularly conducted to identify unnecessary risks and allow strategies to be created to work around and mitigate them. 

Whether you could use more diversification, different allocation to specific asset classes, or are not utilizing all available insurance solutions, you will need to update your investment risk management strategies regularly and to make sure that they are suited to your current financial situation, but keep an eye on the future.  

2. Tax-efficient strategies

Tax strategies are a larger piece of wealth management for business owners and investors than anyone would like to think. Your investment managers, risk managers, or retirement planners are all playing the game with one hand tied behind their back if they aren’t working closely with an experienced tax professional. 

You should be utilizing some combination of the following tax strategies to make sure you’re maximizing returns and limiting reductions:

• Maximize your retirement contributions towards 401(k)s, IRAs, or Roth IRAs.
• Consider realizing capital losses to offset capital gains
• Make charitable contributions to qualified organizations
• Invest in tax-efficient funds or holdings
• Contribute to a HSA 
• Use all remaining funds in an FSA
• Convert or rollover any eligible retirement accounts
• Have a professional check for tax credits or any missed deductions
• Take any required minimum distributions (RMDs) that you may be required to take
• Contribute to any education funding plans for your children’s or grandchildren’s future education

While you can make an attempt to do much of this on your own, working with a trusted and experienced tax professional makes it much easier for you to structure your business for maximum tax efficiency, apply for special tax credits, and work to find the solutions that are right for you and your investments. 

3. Monitoring and adjustments for business plans and portfolios

Markets are dynamic and so is success in any venture. Top private investors know that monitoring and adjusting their individual financial plans is as important as it is for any business. Staying alive as an investor means adapting and overcoming. 

Working with financial advisors whom you trust can help make sure you are the first to know when something needs to change, allowing you to better adapt and anticipate rather than react to the market. 

When working with a wealth management firm that offers a family office experience, the ability to monitor and adjust does not just extend to your portfolio of investments, but also to your estate, your tax solutions, and your retirement plans. In short, your entire financial life can become a more responsive, all-encompassing unit. 

4. Holistic outlooks, tailor-made solutions for investors or private equity firms in Houston

Speaking of the flexibility afforded by the single-family office environment, boutique family office experiences allow your financial solutions to be truly unique to you. Every Houston private investor has unique goals, tolerance for risk, interests, and time horizons, so why work with a wealth management firm that offers one-size-fits-all solutions?

There is no replacement for working with a trusted team of advisors who know you and your finances personally, and who create solutions for your financial needs based on a deep understanding of your goals and desires.

Whether you’re a solo investor or you work for a private equity firm in Houston, working with a wealth manager that offers a boutique family office experience can help you make sure that your current financial circumstances align with your long-term objectives.

5. Exclusive investment opportunities for top private investors

You should shop for wealth managers whose investment management services don’t stop at portfolio management and monitoring, but instead extend to alternative investment strategies and opportunities not available to individual investors. Although Houston private investors are already quite well-connected, there’s no harm in letting your wealth managers introduce you to new opportunities.

Private investors may benefit from a wide range of alternative investments because they operate outside of the traditional markets. While alternative investments or special investment opportunities may not always be right for you, they can offer investors incredible latitude in the way of prospects not correlated to traditional market circumstances, and in some cases provide a breath of fresh air for a portfolio. 

Avidian Wealth Solutions offers tailor-made solutions for Houston private investors

Avidian Wealth Solutions offers a boutique family office experience that can benefit all types of investors. Whether you’re a real estate investor in Houston or are interested in venture capital investing in Austin, we can offer you access to a suite of diverse and talented financial professionals, all working together towards sustainable solutions for your wealth and future.

Private investors can stand to gain a lot by partnering with wealth managers, especially those with a large team of diverse and talented financial professionals. Avidian Wealth Solutions can offer Houston private investors a wide range of financial solutions tailor-made to fit their unique needs and ambitions. 

If you are a Houston private investor looking to add a team of talented financial professionals to your corner, Avidian Wealth Solutions has financial advisors in Houston, Austin, Sugar Land, and The Woodlands waiting to talk with you. Schedule a conversation with one of our advisors to find out how Avidian can help you today.

More Helpful Articles by Avidian: 

• What Are The Benefits of Thinking About Retirement Expenses Now?
• How To Keep Property In The Family Forever
• 10 Questions to Ask a Financial Advisor at Your Initial Consult
• What Are The New FinCEN Requirements?
• What You Need To Know About 529 Accounts for Grandchildren

---

Please read important disclosures here