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#1 What is the benefit of wealth management?

05.09.2023
Felix Niederer

At a time when saving and investing are becoming increasingly important, many of us are asking ourselves: why wealth management at all? In this video podcast, we take a look at the benefits of wealth management, comparing the traditional method with the online alternative.

The challenge of money on the savings account

Do you have money on the side? The first idea might be to simply park it in your savings account. But there is more to this than meets the eye. Your money in the account may be a number, but in reality it is subject to inflation. That means your purchasing power decreases over time. A crucial point not to overlook.

The compound interest effect: one percent makes all the difference

The compound interest effect is no secret. A small percentage difference can make a considerable difference in your wealth over the long term. For example, if you invest 100,000 francs over 20 years at a 7 percent rate of return, you'll end up with about 390,000 francs. However, if the return drops to 6 percent, suddenly it's 66,000 francs less.

The effects of inflation

Think about inflation as well. Your money in the bank account is not spared from inflation. With inflation at 2 percent and an interest rate of 1 percent, after 10 years you will lose 10,000 francs of your original amount in real terms. This illustrates how important it is to protect yourself against this creeping loss of purchasing power.

Participation in global economic growth

How do you counter this problem of loss of purchasing power? The answer does not lie in gambling. Instead, it's about participating in global economic growth. And that's less complicated than it first seems. That's where professional wealth managers come in.

Professional wealth management: an individual solution

Professional wealth management offers an individual solution. Each asset class is carefully considered, based on your risk profile and preferences. Whether sustainable investments or a globally diversified securities portfolio – your wishes are taken into account. A personalized investment proposal is created and implementation takes place, ensuring a balanced investment mix through diversification.

Online wealth management vs. traditional wealth management

The difference between online and traditional wealth management is accessibility, transparency, and cost. The traditional method involves annual meetings with a bank advisor, while the online option gives you anytime access to the investment strategy. This reduces waiting times and allows real-time monitoring of your portfolio. It can also reduce costs, which can have a significant impact on your wealth over the long term.

Conclusion: Growth through intelligent wealth management

Wealth management is key to defying inflation and benefiting from global economic trends. Online or traditional – the choice is yours. No matter which you choose, smart wealth management can help make your money work for you and provide you with a financially secure future.

Have questions or comments? Feel free to email Felix Niederer. See you next time!

Disclaimer: We have taken great care with the content of this article. Nevertheless, we cannot exclude the possibility of errors. The validity of the content is limited to the time of publication.

About the author

author
Felix Niederer

Founder and CEO of True Wealth. After graduating from the Swiss Federal Institute of Technology (ETH) as a physicist, Felix first spent several years in Swiss industry and then four years with a major reinsurance company in portfolio management and risk modeling.

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