Good wealth management often starts with a wealth assessment, which allows you to take stock and objectively define your personal needs and objectives in the short, medium and long term. This wealth assessment will then guide your wealth strategy.
Balance sheet: definition
An asset review is a detailed analysis of your various assets to identify strengths and weaknesses, and set up a long-term asset strategy.
This must take into account :
- Financial assets
- Real estate assets
- Professional assets
- Cultural heritage
A balance sheet is a compilation and analysis of data, the result of which is a summary enabling optimized asset management:
- Tax optimization
- Financial adjustment
In addition, a true wealth assessment must take into account the needs of each individual, in order to obtain personalized advice based on objectives:
- Preparing for retirement
- Inheritance and succession
- Financial independence
How does a wealth assessment work?
As the aim of the wealth assessment is to evaluate your “financial health” and make personalized recommendations, there are several stages to the process.
It’s important to note that these can be done online or face-to-face.
This first part of the balance sheet is probably the best known. It provides an overview of the asset, establishes a diagnosis and serves as a basis for further analysis.
- Professional audit. It consists of an assessment of your current professional situation and sources of income.
- Financial audit. This includes investments (stock market, savings books, etc.) as well as real estate assets.
- Tax audit. It’s all about knowing exactly what your current tax situation is, so you can optimize it.
- Estate audit. This is an estimate of the inheritance tax that would apply if the inheritance were to take place at the present time.
Analysis of objectives
This extremely important step is all too often neglected, as some “specialists” don’t take the time to understand exactly what each person’s needs and objectives are.
A wealth assessment is useless if it’s not personalized, so it’s essential to know what your aspirations are. It’s important to be clear about this, but it’s also up to the professional to guide you by asking the right questions.
The ultimate aim of a wealth assessment is to provide you with sound advice on the actions you need to take to achieve your goals. These recommendations can cover a variety of subjects:
- Improved investment performance
- Optimizing debt
- Tax reduction
- Asset diversification
- Ease of succession
These recommendations must be accompanied by a simulation. Likewise, you need to be informed of the possible benefits, but also of the risks involved.
When should you have a balance sheet?
It’s never too early to take stock of your assets.
Right from the start of your working life, it can be worthwhile to optimize your investments and invest wisely. When you start a family, it’s important to start thinking about your children’s future by offering them the best possible conditions. And a financially worry-free retirement needs to be prepared well in advance!
Who can carry out an asset assessment?
Contrary to popular belief, wealth assessments are not just for high-income earners. Of course, they can take advantage of professional advice to optimize their assets, but everyone benefits from a personalized wealth assessment.
It can help people in debt to become financially independent, low-income earners to build up savings, and large families to secure their children’s future…
The right balance sheet can improve your financial situation, whatever your initial situation.
Who should I contact for a wealth assessment?
To carry out your wealth assessment, you need to contact a professional with the status of wealth management consultant (CGP). He or she receives appropriate training, taking into account the legal, financial, tax, social and economic aspects of the assignment.
You can find a CGP :
- In a bank or insurance company. Many wealth management advisors are employed by these organizations, which often offer their services free of charge. While the audit and analysis carried out within this framework are often of high quality, the recommendations are too often limited to the products offered by the bank or insurance company employing the independent financial advisor.
- In a firm or self-employed. It’s usually under this status that you’ll find the most competent and experienced professionals. Although their services are not free, the audit is complete, the analysis is thorough, and above all, the advice is tailored to your situation.
It is entirely possible to carry out several asset assessments, in order to compare the recommendations of each advisor.
Likewise, it’s a good idea to carry out a wealth assessment on a regular basis (or whenever your personal situation changes), to assess the evolution of your assets and keep abreast of trends and new opportunities.
Altermès Patrimoine is a wealth management firm backed by an accounting firm. This strengthens our expertise and independence, and gives us a global, objective approach to your situation . We support you over the long term, with an advisory approach that treatsthe product as an accessory to wealth management advice.
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