Wealth Management Comprehensive Guide (2019)
What is wealth Management?
Wealth management as an investment-advisory discipline which incorporates financial planning, investment portfolio management and a number of aggregated financial services. They also provide accounting, tax services and retirement planning for one set fee. Clients work with a single wealth manager who coordinates input from financial experts and can include coordinating advice from the client’s own attorney, accountants and insurance agent. Some wealth managers also provide banking services or advice on philanthropic activities. Wealth managers are different from brokers, who simply coordinate buyers and sellers and execute trades in the market
Wealth management example
A person who works in a large bank may focus on 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.
Wealth managers usually work in a large firm most often associated with the financial arena, they can also function under different titles including financial consultant or financial advisor. A client may receive services from a single designated wealth manager or may have access to members of a specified wealth management team.
Strategies of a Wealth Manager
The wealth manager starts by developing a plan that will maintain and increase the client’s wealth based on that individual’s financial situation, goals and comfort level with risk. After the original plan is developed, the manager meets regularly with clients to update goals, review and rebalance the financial portfolio, and investigate whether additional services are needed and with the goal of remaining in the client’s service throughout his lifetime.
From billionaire fortune management to small-level personal financial advisors, the heart of wealth management is a value proposition; it’s a promise of returns and security that exceeds whatever fees are associated with the service.
Can a financial advisor become wealth managers?
Not all financial advisors are good candidates for becoming successful wealth managers. Many financial advisors are doing quite well running money, for instance, and are not inclined by temperament or preference to transition to becoming wealth managers. At the same time, it’s very important to realize that wealth management is not for all affluent individuals. It’s usually appropriate for the wealthy with diverse needs and wants.