The benefits of an ESG wealth manager are vast.
First and foremost, ESG wealth managers align values with investments. Such managers truly understand and implement in portfolios the notion that financial success and ESG (Environmental, Social, and Governance) progress need not be mutually exclusive.
It is of paramount importance to protect your wealth. Working with an ESG wealth manager is a recipe for success. Here’s why.
1. An ESG Wealth Manager Can Help You with Retirement Planning
ESG managers align values with investments. Therefore, ESG managers can help you successfully plan for retirement without straying from your values. Whether you are fifty or twenty-five, it is never too early to put retirement goals on your horizon. When it comes to investing, there is no such thing as being over-prepared.
An astute wealth manager will be actively involved with your retirement planning, not only helping you to better understand your risk profile (and how that might change as you age), but also helping you extract all possible benefits to ensure for a financially successful retirement. Retirement planning in the age of disappearing pension plans is of vital importance and now, more than ever, wealth managers are needed.
2. An ESG Wealth Manager Can Help You Mitigate and Manage Your Risk
An important benefit of working with an ESG wealth manager who you trust is that you and your wealth manager can establish a great level of transparency and confidence. ESG wealth managers are experts in risk management. In fact, considering the environmental, social, and governance aspects of companies to invest with requires a deep understanding and attention to all risks. ESG investing is essentially traditional investing with intensified due diligence and risk management.
Therefore, your ESG wealth manager will likely be able to listen to and deeply understand, your risk tolerance. This way, you don’t have to worry about the risks of your investment. Your wealth manager will worry for you! An ESG wealth manager will help you make the changes necessary to your investment portfolio to maintain your desired risk tolerance, which can prove especially important during periods of uncertainty.
3. An ESG Wealth Manager Can Provide Comprehensive Advice
As a wealth manager is involved in every aspect of your financial strategy, and he/she is bound by fiduciary duty to provide utmost thorough advice, the financial planning that occurs between you and said wealth manager will consider all aspects of your current and anticipated future financial income and goals.
As opposed to one-off advice on a single investment or sector, the financial planning advice from an astute wealth manager will only be provided after a careful consideration of your comprehensive portfolio, income, risk tolerance, and goals. Comprehensiveness is key.
4. An ESG Wealth Manager Can Help You Identify Gaps in Your Strategy
Wealth managers do not only listen and make investment allocations based on what you tell them, but an ESG wealth manager will actively strive to identify gaps in your strategy, and make recommendations as to how to close those gaps and achieve better diversification, income, and risk mitigation. An astute wealth manager has vast experience with many different clients and liability streams, and thus is well suited to help identify gaps and make advantageous recommendations.
5. An ESG Wealth Manager Can Help You Achieve Financial Success Alongside Social Impact
An ESG wealth manager will help align your values with your investments. They can perform this task by taking careful consideration of risks, taking both financial and non-financial data into account. An example of a non-financial data point that helps in hedging risk is climate change. Climate change can bring volatility to your portfolio, eroding your return. Such wealth managers will be able to help you use your money to engender the type of impact you would like to leave on this world, but will not sacrifice financial return in the process.
“If you would understand anything, observe its beginning and development” – Aristotle
An ESG wealth manager is with you from beginning to end, fully understanding your comprehensive portfolio and needs.