WEALTH MANAGEMENT

We provide a broad based, structured and refined Wealth management advisory service for our clients that aims to deliver results aligned to your particular requirements.

Our advisory team have broad investment, insurance and financial markets experience and have worked in the industry, on average, for over a decade. They sit as a resource for our client advisors thereby bringing an ‘advisory panel’ approach to building your personal wealth management strategies and final bespoke plan upon which your personal advisor and, ultimately, you can rely and have confidence. You can be assured that many eyes review and refine your wealth plan continuously thereby ensuring opportunity is acted upon and risk is mitigated and managed throughout.

Your personal advisor will, in conjunction with the advisory panel, consider all of the wealth management disciplines applicable to your specific circumstances usually including financial planning, retirement and succession planning, health and disability and premature death plans estate plans, education and of course investment strategies and plan from which we begin to build for your financial future goals. We include advice regarding philanthropic and charity giving that is becoming increasingly important to our clients as they realize that helping others or leaving opportunity to others is not only enhancing their lives, it makes considerable financial sense especially for those that survive their charitable gestures.

Our principle goal for our wealth management practice is simply to secure and protect your financial future.

I. Building Wealth

We help you grow.

Wealth management planning is the broad term to describe managing all of an individual’s personal assets, finance’s, investments and insurances into a manageable and cohesive format that is then managed for growth.

The broad wealth management strategy will further consider and provide for your investment values, asset class spread and risk tolerance while providing for your retirement, healthcare, disability and perhaps your untimely death or incapacity. Strategies for succession, transition and provision for your loved ones all have to be factored in, considered and provided for according to your personal desires and capabilities. To achieve this requires the accumulation of wealth which needs to accrue and grow at an efficient and strategic rate to cater to all of these current and future demands.

At SIERRA HOLDINGS LIMITED Wealth Management Advisory, we work with you to build your wealth through a bespoke plan unique to your needs and values considering all the requirements and eventualities. We do this through analytical investment and Asset spread with mixed allocation to position your investments and assets among a variety of investment classes or categories. Asset allocation is understood to be one of the most effective strategies to building wealth while better managing and reducing overall investment risk for a portfolio. This asset class spread has a statistically more reliable investment speculation results which in turn improves the risk/return balance of your portfolio with the net result of better wealth management portfolio growth.

Asset class planning allows you to define and refine the kind of investments you want for your portfolio. The investment strategy can be more closely aligned to your personal values and agenda with a reasonable level for forecasting confidence.

Alternative investments are very interesting Asset class consideration for the right investor. Alternative investments bring a lot of diversity to the portfolio in investments that respond differently to the traditional markets and more conservative traditional investment products. Some examples of these include Managed futures, hedge funds, oil and gas, tax shelters, fine wines, art, cars, agriculture and even real estate are all examples of alternative investments. Alternative investments usually involve more risk and suffer from liquidity flexibility requiring a longer holding strategy.

Some investment situations require specialist expertise beyond the typical portfolio of market equities or bond portfolios. These specialist investments focus around employee pension plans or employment benefits such as stock options and margin strategies. We specialize in such matters here at SIERRA HOLDINGS LIMITED Wealth Management Advisory.

II. Risk

Managing Risk is Central to Investment Growth

Risk is the great leveler and motivator. Increasing risk usually provides great return opportunities. This is the measure of your risk appetite or tolerance. It’s when the risk/ return inflection point is reached that this is where excessive risk applies, its the turning point for your investments. It is when the level of risk is not worth the potential return that your portfolio will suffer statistically. The goal of Risk Management is to keep you on the positive side of the inflection point of risk to allow your portfolio to grow within your acceptable risk tolerance mandate.

Understanding what is risk and how to measure it, mitigate it or avoid it is a primary objective. In some respects, risk is obvious. In many the direct risk is reasonably clear but the indirect risks need to be understood and managed. These indirect risks tend to be with equities or bonds or other specialist investments that require market and product technical knowledge and experience so that the risk source and measure is identified and calculated.

Some examples of risk are personal such as health, disability, untimely death, and income loss. Professional risk includes business liabilities and ownership, Key man loss, market or product risks and property loss or devaluation.

We must also address wealth risks such as investment risk pertinent to each investment and across a portfolio, taxes and duties, financial income loss, litigation and the impact of business and personal risks to your personal wealth. They are all intrinsically linked. A good comparison is your accounts which in the first instance seem terrifyingly complex but become familiar as you apply yourself to working through them every year. Your wealth management account begins the same way appearing to be complex. The plan and strategy and relationships between the consummate parts becomes more familiar and understandable as you work with us to develop your wealth plan which ultimately become a major part of how you live your life. A well managed wealth plan will give you considerably more lifestyle choices and freedoms.

We manage your risk by establishing the risk measures and the point of excess risk relevant to each investment and the portfolio in general. It is then a process of avoiding this risk or monitoring and managing the data inputs that measure the risk and making adjustments regularly perhaps by switching class or reducing exposure on a position. An important risk strategy mechanism is insurance.

Lawsuits, accidents, health, property damage, and financial risks can be insured against with products like Directors and Officers Insurance, health insurance and Critical Illness Insurance. Insurance is a very effective wealth management product. Essentially you are paying for access to a large capital sum that will resolve the specified problem in the event of an unfortunate event. The cost is usually small against the capital facility so this makes it cost effective while allowing your personal capital to work on growing your wealth.

SIERRA HOLDINGS LIMITED Wealth Management will work closely with you to build a personalized and understandable Wealth Building Plan that you can have confidence in and subscribe to. We will can educate you on how to make your decisions for now and into the future so that you can concentrate on living a full and enjoyable life while your money is working smartly and efficiently for your future.

III. Taxation

Being Tax Efficient makes ‘Wealth’ sense.

Taxes are a fact of life. Paying tax is all part and parcel of modern life. However making sure that the tax you pay, accrue or will become liable for in the future is as minimal or efficient as possible at the specific tax point is a good financial strategy.

This effective tax planning is a core consideration within the broader wealth management strategy across a portfolio. Absorbing a loss at a new business start up while accruing a taxable liability from another investment may result in a low or zero taxable consequence as a function of timing of investments.

Your personal advisor at SIERRA HOLDINGS LIMITED Wealth Management will discuss with you all of the relevant taxable considerations and tax efficiency strategies that you should integrate into your specific wealth growth formula.

It’s important to note that if you are paying tax, as you should, then you are profitable and your wealth is growing.

As a business, you consider many issues of how you treat tax within the business (income and profit), the company value (capital Gains) and ultimately succession or exit taxes and duties will have you sensibly considering the structure and work flow process of your company operations to be effective and efficient in tax matters. These are issues that your SIERRA HOLDINGS LIMITED advisor will be happy to assist you with.

IV. Business

Your Business is a big part of your wealth.

Your business is a large component of your personal wealth in all likelihood. This is where your income is derived, where your benefits are paid from, where your wealth and investment plans derive their working capital and of course this company is a core investment from which you will want to assess value, risk, retirement schedule and benefits and succession.

Business wealth management is a very strategic sub component of your own personal wealth management plan. It will cover many of the same items and considerations as your personal plan.

However business planning wealth strategies have a large focus on the financial planning (cash flow, profit / loss and debt) issues of business operations as well as structure, tax efficiency and growth in the earlier years.

Key man issues, the attracting of and retaining of important executives and employees is an important part of business wealth planning. Some succession and business interruption protection may also be of importance for these key personnel. Retaining key personnel is very much a wealth management issue as their motivation and success builds the revenues of the company and therefore your value, however the balance of cost / benefit reward most be considered carefully alongside the tax and risk components of such an executive benefits program.

V. Retirement

Retirement is your time to enjoy the benefits of your children’s inheritance

Planning for your retirement requires a strategy for accumulating wealth to pay for the time when you finish your career. This retirement strategy will help to ensure your desired retirement lifestyle.

Your retirement can span decades especially now that people are living longer. Undoubtedly your pension and savings contributions towards retirement are a significant component of your wealth management plan. Time is the biggest friend to building retirement wealth. This and the size of contributions in the earlier years. Then compounding works for you to build your retirement wealth.

Unfortunately this demand on early capital for retirement contributions competes with lower earnings usually as you are earlier in your career. You will also have relatively higher personal costs relative to income. These living costs will likely include a home, a spouse and children plus cars, holidays, business or career costs and much more. A successful retirement plan that makes efficient financial planning based use of your incomes and assets in the formative years and builds strategically as your wealth grows will very likely make a significant improvement to your retirement lifestyle.

At the heart of any retirement plan is the distribution of accumulated assets.

The correct distribution strategy will ensure that your retirement savings last beyond your lifetime with minimum shrinkage from taxes and duties or litigation.

VI. Estate

Your family’s home and wealth should not be wasted.

An Estate plan provides creates for the management of your property assets during your life and their distribution at death.

A considered estate plan within the broader Wealth Plan should provide for more control over the property assets during your life. They may form part of your health and critical disability cover plan. They will feature in your savings, retirement and succession plans so a strategy to allow for the transfer of the asset to whom you want, when you want, in the most cost effective and efficient manner so as to protect the net value retained by your beneficiaries makes complete sense especially when property values are so high and rising steadily today.

Some estate planning considerations in the wealth management process include:

  • - The transfer of wealth
  • - The maximizing of net value transfer
  • - Asset protection
  • - Charitable giving

A considered Wealth transfer plan will include considerations to affect a smooth transition and distribution of the estate according to your wishes upon your instruction or at death.

With proper estate planning, you decide to whom, how, and when your estate and assets will be distributed. You may also provision for who will manage your estate and / or business.

If your estate requires a plan for creditor protection due to mortgage based debt perhaps, this may also require an insurance wrap consideration. Identifying potential creditors will allow these to be considered and provided for within the risk plan and broader wealth management plan

VII. Philanthropy

To help other people altruistically is the sign of a ‘wealthy and rich’ person indeed.

Many people wish to give back to others less fortunate or to the communities or society that helped them or shaped their lives.

In recognition of the beneficial economic and societal effects of charitable giving or philanthropy, many governments offer a multitude of incentives and tax benefits for charitable giving.

There are a multitude of tax efficient structures that can also be utilized to pass an asset through to charity while retaining the revenues for you while you are alive.

A good philanthropic plan can minimize your income and estate taxes while maximizing your gift.