Private banking is also a great way to ensure that wealth is carried over into future generations.
What is Private Banking?
Private banking is suitable for high-net-worth individuals who need specialist assistance with managing their wealth. It’s a service used by entrepreneurs and senior executives, as well as families with generational wealth.
What sort of areas does Private Banking cover?
As well as offering premium advice on investments and portfolio management, private banking can also help with things such as structured products, as well as offering specialist lending secured on property or other assets.
Private banking is also suitable for people who live or work abroad, or have complicated living arrangements – and are subject to different tax regimes. Private banking insurance options can include kidnapping and ransom insurance as well as coverage for special interests such as yachts, classic cars, fine art and aircraft.
Private banking is also a great way to ensure that wealth is carried over into future generations, for example by preparing an individual’s estate, setting up family trusts, or to help a business make succession plans.
How do you pay for Private Banking services?
Have you ever been in an expensive shop where all the products displayed don’t have a price tag? Private banking services are like that. Private banking providers pride themselves on offering a unique service dedicated to meeting the needs of you and your family. It is impossible to put a price on it because each situation is different and the solutions available are so personalised. You can expect to pay a percentage of any amount you choose to invest with a private bank, as well as ongoing service and management charges.
What will the initial meeting be like?
You can expect the red carpet to be rolled out. Private banking is about establishing a relationship with the potential to last for more than a generation. The first meeting will be all about getting to know you, understanding your needs and any areas of particular focus. Expect the conversation to cover all aspects of wealth planning including managing, growing, and preserving your wealth.
After the initial meeting, the private bank will usually put together a proposal based on the things you discussed in your meeting. If any recommendations are made, they will explain the reasons why, as well as inform you of any fees and charges. Some financial arrangements may take some time to set up.
What’s most important to remember?
You’ll be expected to prove your identity, as well as confirm that you have sufficient funds to invest to qualify for the services that the private bank offers.
In our experience…
Private banking is the most exclusive, top tier of wealth management, and is usually reserved for individuals or families with £5 million or more of assets to manage. Such a tailored service doesn’t come cheap, but it’s likely that the solutions it offers won’t be available to the mass market. When dealing with such large sums of money, it’s essential that you feel fully comfortable with the relationship.
At Compare Wealth Managers.com we’ll use our extensive experience in the private banking world to find one best suited to your individual needs.
