What is private asset management?
There are different forms of asset management , such as individual asset management and passive asset management. There is also private asset management. This form of asset management focuses on investing the assets of private individuals. They ask a private asset manager to invest their private assets professionally, because they cannot/dare not or do not want to do this themselves.
What does a private asset manager do?
The private asset manager offers a number of services that complement each other well. Think of creating an investment strategy, financial planning and tax management. In this way, they take all the specialist work off the investor’s hands.
Private asset managers can invest their assets actively and passively.
With passive investment, the assets of the private individual are invested in an S&P500 fund , for example . The assets will then grow with the market, but will not achieve miraculous returns. An active asset manager, however, ensures that the assets are actively invested. Strategies are devised and research is done into potential investments by a specialist.
Before the private individual’s assets are invested, a financial plan is drawn up. What are the private individual’s goals? Is the goal a specific amount, so that the children can go to school? Does the private individual want to invest in order to retire early? Or should the money mainly end up with tech companies to support forward engineering?
Start at a low threshold
With the advent of the internet and online asset managers, it has become possible to invest without a high deposit. In the past, at least a ton had to be deposited before one could go to an asset manager. Nowadays, anyone can go to a manager for just a few hundred or thousands of euros. For example, most collective asset managers allow you to start for just a few hundred euros.
Investing has never been as accessible as it is now.
Tax management
For wealthy individuals, proper tax management is very important. Not only to ensure that no rules are broken, but also to ensure that as little tax as possible has to be paid within the law. Tax specialists know exactly how to limit the damage to your return. This can be done by reinvesting returns in a fund, or by investing them in real estate, or by donating them to children. This ensures that the returns can be used optimally. Donations to charities or companies can also reduce taxes.