Wealth management for individuals | What do you need to know?

You have money set aside and want it to do more than just sit in a savings account. But investing for yourself feels like a profession in its own right. Wealth management for individuals offers a solution: you let professionals manage your money without having to worry about it yourself. But how does it work, what does it cost, and is it right for you?

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What is private wealth management?

With private wealth management, you hand over investment decisions to a professional party. Your money remains yours, but the manager selects the funds, spreads your wealths, and adjusts the portfolio when necessary. You receive a strategy based on your risk profile, goals, and horizon.

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In the Netherlands, around 1.5 million individuals use some form of managed investing. Traditionally, this was mainly reserved for those with at least 100,000 euros. Digital wealth managers have significantly lowered that threshold. Often, you can start from a few thousand euros or even without a minimum deposit.

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Why individuals choose wealth management

Investing for yourself sounds attractive, but in practice, it often disappoints. Research shows that private investors achieve an average return 2 to 4 per cent lower than the market. They trade too frequently, let emotions play a role, and have insufficient diversification. More than half of all portfolios consist of only three to four positions.

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Wealth management corrects this. You get automatic diversification across global markets, periodic rebalancing, and a fixed strategy that you are held to. No emotional selling during downturns or impulsive entry during peaks.

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Private wealth management tip: traditional versus digital

Traditional wealth managers and private banks focus mainly on wealths from 250,000 euros. You get a personal adviser, but you also pay for it: an average of 1.2 to 1.8 per cent per year in costs. The role of a private wealth management adviser is increasingly shifting from stock picking to risk management, tax optimisation, and behavioural coaching.

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Digital wealth managers work differently. No advisers, but automated strategies based on index funds. The costs are considerably lower: between 0.25 and 0.60 per cent management fee, with fund costs below 0.20 per cent. Over 30 years, a cost difference of 1 percentage point can lead to 25 to 30 per cent less final capital.

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Tax-efficient investing for individuals

If you invest in box 3, you pay annual wealth tax on a notional return. For wealths above 57,000 euros as a single person or 114,000 euros with a tax partner, this adds up.

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An alternative is pension investing via the third pillar. Your contribution is deductible up to your annual allowance, your capital does not fall into box 3, and you only pay tax upon payout—often at a lower rate than during your working years.

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Wealth management for individuals at Vive

At Vive, there is no minimum deposit. You pay a 0.35 per cent management fee per year and 7.50 euros per month. Fund costs range between 0.13 and 0.19 per cent. No transaction costs, and no entry or exit fees.

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You get a personal lifecycle strategy that automatically reduces risk as you approach your goal. Everything is transparent via the app: returns, risk, scenarios, and costs. Suitable for individuals of any level. Want to know how this fits your situation? View the options for pensions for the self-employed or read more about pension investing.