Goldman Sachs Wealth Management — 3 key points to consider (2024)

Goldman Sachs Wealth Management is one of the most well-known Wall Street firms in the world. It is part of one of the largest investment banks in the world and is ranked 62 on the Fortune 500 list. The question is, can they provide you with personalized service? Can they deliver optimized, secure, lifelong financial security and peace of mind?

STRATEGIES FOR FAMILIES WORTH $5 MILLION TO $500 MILLION

7 Secrets To High Net Worth Investment Management, Estate, Tax and Financial Planning

The insights you’ll discover from our published book will help you integrate a variety of wealth management tools with financial planning, providing guidance for your future security alongside complex financial strategies, so your human and financial capital will both flourish.

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For investors who qualify with $5+ million of investable liquid assets we’d recommend yourequest your ultimate guide to wealth management, estate and tax planning.

Former Goldman Sachs Wealth Management employees have gone on to hold important roles such as US Secretary of the Treasury, central bank president, and Prime Minister.

Goldman Sachs Wealth Management is often associated with financial and political power and is one of the most influential financial institutions in the world. Goldman Sachs Wealth Management is a business unit that caters to high net worth and ultra-high net worth individuals similar to their wealth management colleagues in private equity areas, such as Morgan Stanley.

Today, Goldman Sachs Wealth Management is trying the new innovative feature in Robo-advisor. Tucker York and his co-head Stephanie Cohen once stated that they are going to do a public launch for the app of a Robo-advisor named Marcus Invest, and they are inviting their clients and wealth management colleagues to join in testing this beta program called Marcus Insights before officially launching a full version.

Robo-financial advisors have become one of the new financial services options for clients at Goldman Sachs Wealth Management to get an advisory service at the lowest price ever. Hence, this feature is suitable for small businesses, for Main Street, and for anyone with a savings account to help them survive the Covid-19 pandemic.

If you happen to have $5 million or more in investible liquid assets, then make sure you check outthis complimentary guideon choosing the best financial advisor (an investment professional, at Goldman Sachs Wealth Management or other firms, who provides comprehensive investment management and wealth management, such as capital investment banking and investment strategies).

We’ve written this article to offer a guide to ultra-high net worth investors and we specifically mentioned $10 million because that is what Goldman Sachs Wealth Managementlooks forwhen signing up new clients. There are many wealth management firms that would be willing to work with someone who has a few million dollars in liquid assets.

Pillar Wealth Management, a boutique firm, works with clients who have between $5 million and $500 million in liquid investible assets. The big question for a high net worth individual is who to work with. One can either opt for a brand-name Wall Street firm, such as Goldman Sachs Wealth Management, or go with a niche boutique firm. The approach and the service delivery can be very different for both options.

In this article, we will discuss some key topics that can give you better insight into wealth management firms, including Goldman Sachs Wealth Management. We will talk about business owner private wealth management. We will then look at what investment advisory services entail and what distinguishes the best ones. We will discussinvestment managementbriefly and then look at direct private investing.

Goldman Sachs Private Wealth Management Background

Goldman Sachs was founded in 1869. It is an American multinational investment bank and financial services company with headquarters in New York City. It opened its first regional headquarters in London in 1970 and created aPrivate Wealth Managementdivision in 1972.

Goldman Sachs has $2.5 trillion in assets under management.

Goldman Sachs Client Types and Minimum Account Sizes

Goldman Sachs Private Wealth Management serves high-net-worth individuals, charitable organizations, endowments and foundations, governments, corporations, hedge funds, and other brokerages.

The firm typically requires clients to have assets of at least $10 million, but exceptions may be made; be sure to ask questions when seeking to become a client.

Goldman Sachs Private Wealth Management Fees

As outlined in the tables above, the fees paid for Goldman Sachs Private Wealth Management services vary. They depend on which services are provided and the level of investment. For example, if $10–$20 million are invested in tax-oriented strategies, the fee is 1.05% of the invested assets’ value.

Services Offered by Goldman Sachs Private Wealth Management

Goldman Sachs Private Wealth Management includes a plethora of services in investing, trust and estate planning, liquidity and lending, and philanthropy. Its advisors partner with investors with $10 million or more in investable assets.

In the area of investing, these services include asset allocation and portfolio building, increasing tax effectiveness, working with alternative investments, and achieving a balance between risk and revenue.

Regarding trusts and estate planning, Goldman Sachs Private Wealth Management offers strategies for wealth transfer and financial and legacy planning.

In the banking arena, the firm offers asset-based lending, real estate mortgages, and cash management.

Regarding philanthropy, Goldman Sachs Private Wealth Management supports its clients in developing charitable strategies and structures for giving.

Goldman Sachs Private Wealth Management Investment Philosophy

With the intent of helping its clients achieve their financial goals, the firm’s wealth advisors focus on making financial decisions that reflect those goals, whether in making the right investments, planning for retirement, implementing a charitable strategy, or establishing a legacy.

Business Owner Private Wealth Management

Business owner private wealth management refers to wealth management services that a business owner can make use of. Business owners are entrepreneurs who have worked long years to establish successful businesses throughout the US. They have toiled for years, put a lot of their money at risk, and have worked with and through people to get to where they are.

Once a business is successful, the rewards can be satisfying as well. However, once the incomes grow, so do the money decisions.Pillar Wealth Management, a niche firm catering to individuals and families with $5 million to $500 million in investible liquid assets, meets business owners regularly who need guidance in important financial areas.

People may wonder that the wealthier a person is, the easier his/her life gets, especially people in Los Angeles and San Francisco where business competition is the toughest in the U.S. This may be true in certain aspects of life. However, with more money comes more responsibility. The responsibility is of protecting wealth, of growing wealth, of giving away wealth to create a legacy, and of passing on wealth to the next generation. These are all toughquestionswith significant legal and financial implications.

If you are someone who is well-versed with finance, law, and investment management, then you can make informed decisions. However, if you want to spend your time doing the thing you love the most – managing your business – then you could do with some professional advice. You should consider major firms such as Goldman Sachs Wealth Management or a more exclusive firm such as Pillar Wealth Management.Schedule a free consultationwith Pillar Wealth Management to explore this option.

A reputed wealth manager at a major firm such as Goldman Sachs Wealth Management can help structure your finances so that you can achieve all your life goals. To know more about wealth management, we encourage you to read this book calledThe Ultimate Guide to Choosing the Best Financial Advisor: For Investors With $5 Million to $500 Million in Liquid Assets.

Investment Advisory Services

We read a lot about investment advisory services these days. Such services focus primarily on investments. After all, it is only by investing smartly that you can create significant wealth over the long term. A hedge fund, for example, is a form of investment advisory service. Goldman Sachs Wealth Management also offers investment advice. In fact, all wealth management firms offer investment advice. The key difference between an average quality of advice and top quality advice is the connection of the advice with the client’s goals.

Money by itself isn’t going to do anything. It will just be a number. However, when that money can help you purchase your dream home, live your desired lifestyle, help send your kids (or grandchildren) to a good school, and contribute to a cause that you are passionate about, then it has a lot more meaning and significance. You can read more about the connection between life goals and investment advice in thisdownloadable guideon choosing the best financial advisor for individuals with $5 million to $500 million in investible assets.

One major difference between wealth advisory services as an investment advisory and a wealth management firm is the breadth of service offerings. Investment advisory deals primarily with investments. Wealth management deals with all aspects of a high net worth or ultra-high net worth person’s financial life.

If you visit the website of any wealth management firm, then you will notice that the list of services covers investments, retirement planning,estate planning, taxation, philanthropy, sometimes real estate, investment vehicles, and general financial planning. The idea of wealth management is to have one person answerable for all your financial needs. You save time and money. Feel free tostart a conversationwith Pillar Wealth Management to know more about wealth management.

Investment Management

You may picture investment management as a group of people in suits sitting in a fancy office at a downtown location talking about what stock to buy. However, that is a “glamorized” depiction of investment management. Whether it is Goldman Sachs Wealth Management or any other wealth management firm, the key to investment management is to prepare a strategy and then regularly update it as per the changing situation. We highly recommend you to check outthis guideon improving portfolio performance for investors with $5 million to $500 million in liquid investible assets.

The markets are constantly changing and so is the world. The client’s personal life also changes every day, and life goals can change accordingly. Therefore, if a wealth manager talks about long-duration assumptions like a 20-year investment return average of 10%, you should be skeptical. Over the 20 years, the average maybe 10% but there will be years when the return is -20% and there will be years when the return is +20%. One cannot model an investment strategy based purely on such assumptions.

The only things constant, as they say, are death and taxes. We would add a third thing – expenses. Your basic lifestyle expenses are probably going to increase at the rate of inflation but they won’t go down unless you are forced to take a downgrade on your quality of life.

So, investment management has to be a carefully thought-out plan. A good wealth manager at a firm such as Goldman Sachs Wealth Management will perform regular stress tests to check if the portfolio can handle adverse events and whether you are on track to achieving your goals. A top wealth manager also has to pay careful attention to investment costs.Get in touchwith Hutch Ashoo to discuss more this aspect of investment management.

Goldman Sachs Private Wealth Management Investment Costs

As mentioned in the previous section, investment costs matter a lot. They matter as much as investment returns. Why do we say so? Because, the net returns that you, the client, see at the end of the day are the returns after deducting taxes, brokerage charges, expense ratios, and fees. So, even if your gross returns are impressive, they will be lowered ultimately depending on how the investment costs are structured.

You may be surprised to find out just how many investment managers and wealth managers are solely focused on gross investment returns. They spend a significant portion of their time and energy trying to outperform the benchmarks and boost returns at all costs. This is not necessarily a bad thing to do. However, let’s take one example to understand the point we are trying to make.

Suppose a wealth manager, who may work at Goldman Sachs Wealth Management, tries to boost portfolio returns by following a high-frequency trading strategy. Stocks get bought and sold every few weeks and there is high turnover. This may give some extra returns. But, it will also result in higher short-term capital gains taxes. It will result in more brokerage fees and other transaction costs.

Contrast this approach with a long-term investment in a low-cost passive fund. The taxes will be on the long-term capital gains and the investment costs will be one-time (and minimal). Depending on the client’s financial goals, the second strategy may be a better fit. You can read more about active vs passive investing in thisshort guideon critical shifts needed to maximize portfolio returns.

Direct Private Investing at Goldman Sachs Wealth Management

Goldman Sachs group inc. Private Wealth Management offers the service of direct private investing. It refers to investments done by affluent individuals in traditional as well as alternative asset classes. The alternative asset classes can include real estate, clean energy, and other forms of debt. Direct private investing or asset allocation activity can happen within the US, across Europe, and in other high-growth areas like Asia. Direct private investing is normally meant for sophisticated investors that understand the underlying risks of the asset classes in which they invest. The benefit of direct private investing is the diversification that it offers and the high returns that the portfolio can earn if the investments are successful.

The key point about direct private investing is that your wealth manager should have expertise in a range of asset classes. Either the wealth management firm should have this expertise in-house or it should be able to bring in an outside expert who is reliable and has a track record. You want your advisor to have enough experience in the alternative asset classes. For example, if you are planning to do a real estate transaction, then you do not want to work with any average real estate expert.

You want to work with someone who has worked on multi-million dollar deals and preferably someone who has advised business moguls and celebrities. We mention this because dealing in a $1 million property is very different from dealing in a $50 million property. There are specific skill sets that are needed to structure and access multi-million dollar deals.

If you want to discuss direct private investing in detail and whether it is the right option for you, feel free toreach out toPillar Wealth Management.

How Is Pillar Wealth Management Unique?

You now know a decent amount about wealth management and how investment management services are offered at Goldman Sachs Wealth Management. As you go about searching for a top wealth manager in asset management areas, we would like to mention a few things about Pillar Wealth Management. The niche firm follows a philosophy of financial serenity. It means that clients can sleep easily at night without worrying about whatthe marketwill do to their portfolios. It also means that clients will progress towards achieving their financial goals in a stress-free manner.

Pillar Wealth Management is, perhaps, one of the few firms that have a goal towards saving investment costs. Its goal is to save the client $100,000 for every $10 million in assets that it is asked to manage. They try to attain this with better performance, lower losses/volatility as well as lower taxes and expenses. Pillar Wealth Management also takes plan updates seriously and regularly stress-tests, every 90 days, client portfolios for 1,000 random scenarios. This stress-test is based on historical market data of the past almost 100 years. Lastly, Pillar Wealth Management is taking only 17 new clients this year because a smaller size allows the firm to provide personalized white-glove services to its clients.

Hutch Ashoo and co-headsChristopher Snyder are the expert founders of independent, fee-only, and fiduciary wealth management firm Pillar Wealth Management. If you would like to speak with them or simply ask any questions about how custom and trusted wealth management advice is offered to high-net-worth individuals with $5 million to $500 million in investible assets, then feel free tostart a conversation.

© 2018 – 2020 Pillar Wealth Management LLC –All rights reserved.

Authors

Hutch Ashoo

Chris Snyder

To be 100% transparent, we published this page to help filter through the mass influx of prospects, who come to us through our website and referrals, to gain only a handful of the right types of new clients who wish to engage us.

We enjoy working with high net worth and ultra-high net worth investors and families who want what we call financial serenity – the feeling that comes when you know your finances and the lifestyle you desire have been secured for life, and that you don’t have to do any of the work to manage and maintain it because you hired a trusted advisor to take care of everything.

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