What Is Wealth Management?

There is not necessarily a clear distinction among the terms financial planning firm, financial advisor, private wealth Management Company, and individual wealth manager. But according to Investopedia, Wealth management is a high-level professional service that combines financial and investment advice, accounting and tax services, retirement planning and legal or estate planning for one set fee.

In recent years the space between most financial services and the public’s perception has become more nebulous, making it difficult to discern what particular ethos is best suited for both the average American and individuals of high net worth. The way we plan for retirement and invest has change dramatically in the past several decades and even in the past years. Your father’s investment plan probably wont get you to far in todays financial market.

It’s fair to say that an individual with a net worth of more than $20 million will require a different set of skills and financial services than an individual with a net worth of less than $1 million. And someone who is sixty will need different financial services then someone who is twenty-five. It is because of this that wealth mangers, and successful wealth management companies, distinguish their financial products and services, which are typically reserved for very affluent clients.


What Makes Wealth Management Different?

Unlike traditional notions of financial planning or advising, wealth managers separate themselves by offering a client-centered, holistic approach to all financial products and services.In somecases, a wealth manager will haveexpertise in a range of financial products, or they might be focused on one particular service.

Wealth managers use a consultative process that explores each client’s specific desires and financial needs. It is through this relationship that wealth mangers are able to prescribe the appropriate financial products and services. Moreover, wealth mangers might have specific skills sets and knowledge that apply specifically to client portfolios of high net worth.

A Wealth Managers or Financial Planners job is to allocate their clients money and investment in the correct places. 401k’s and IRA’s are not as financial sound as they use to be. The Stock Market change more often than it should, so what should you do with your money?  Financial Planners understand the market and its fluxuationand can help predict when to invest in and what or when not to. They understand when and when not to be aggressive with your money. Hopefully in the long run making their clients more money than a 401k or IRA can.

It is with this specific experience that wealth managers are uniquely prepared to plan and exercise their skills, which are designed to secure and perhaps grow wealth for the diverse needs and desires of affluent clients.

While financial planning and wealth management might have similarities, it is a matter of degree, or the actual net worth of an individual, that often determines whether finical planning or wealth management is the appropriate course of action. Contact Destination Wealth Management for more information about your future investment and financial needs.


Author: Eddy

Eddy is the editorial columnist in Business Fundas, and oversees partner relationships. He posts articles by others on various topics related to strategy, marketing, supply chain, technology management, social media, e-business, finance, economics and operations management. The articles posted are copyrighted under a Creative Commons unported license 4.0. To contact him, please direct your emails to editor.webposts@gmail.com