Banks Counting On Wealth Managers To Build New Revenue

A handful of banks already have built up their wealth management businesses. Fidelity refers to them as Pacesetters because wealth management is estimated to make up 35 percent of their revenue in the next five years. The survey uncovered the five key traits of Pacesetters and the top challenges they face for continued success. The five key traits included leadership commitment and a continued focus on wealth management; integration, not competition, with other bank lines of business; comprehensive wealth management service offerings; leveraging the RIA approach; and outsourcing non-core back office operations. The five challenges these businesses must overcome included investor perceptions; internal development and training; streamlining platforms; recruiting and retaining advisors with wealth management expertise; and keeping up with technology.

How to build your wealth in simple steps!

Although the process of building wealth is not complex, it is difficult to implement, simply because of the discipline it requires. Here are a few simple steps which will help you build your wealth: The earlier, the better: It is often said that the earlier one starts investing, the better it is to grow your money. As with anything else in life, investing also benefits with an early start. The principle of compound interest works magic on building money.

9 Ways to Build Wealth in 2011

Tip for success: You don't solely want only fixed-rate instruments such as bonds and CDs, she says, because it takes more than compounding interest to build a retirement fund. 7. If You Have an HSA, Max It Out Eric Tyson, author of "Investing for Dummies" and "Personal Finance for Dummies": "I'm a very big fan of (health savings accounts) because they offer better potential tax benefits than a traditional retirement fund," Tyson says. With HSAs, investors receive an upfront tax break, compounding investment earning, and pay no tax on the money that is withdrawn "as long as its use is for health expenses," he says.