The most effective wealth management strategy is one that integrates and coordinates all forms of financial planning.
Wealth management is an investment advisory service that combines other financial services to address the needs of affluent clients. It is a consultative process whereby the advisor gleans information about the client’s wants and tailors a bespoke strategy utilizing appropriate financial products and services.
A wealth management advisor or wealth manager is a type of financial advisor who utilizes the spectrum of financial disciplines available, such as financial and investment advice, legal or estate planning, accounting, and tax services, and retirement planning, to manage an affluent client’s wealth for one set fee.
The reason, why wealth management has come to be associated with the rich and wealthy is because wealth is associated with the rich and wealthy. However, investors with modest income / wealth are also candidates for money management solutions.
Key Takeaways of Wealth Management
- Wealth management is an investment advisory service that combines other financial services to address the needs of affluent clients.
- A wealth management advisor is a high-level professional who manages an affluent client’s wealth for one set fee.
- Affluent clients benefit from a holistic approach in which a single manager coordinates all the services needed to manage their money and plan for their own or their family’s current and future needs.
- This service is usually appropriate for wealthy individuals with a broad array of diverse needs.
Why need Wealth Management?
Those in the direct employ of a firm known for investments may have more knowledge in the area of market strategy, while those working in the employ of a large bank may focus on areas such as the management of trusts and available credit options, overall estate planning or insurance options.
The position is considered consultative in nature, as the primary focus is providing needed guidance to those using the wealth management service.
