Matters arising from wealth management

To simply put, wealth management is an all-encompassing approach to an individual’s financial life. This can include advice on finances and investments, but also tax/accounting services, planning for retirement, legal and estate planning. This type of approach will ensure that an individual’s wealth is being overseen by a single wealth manager or close-knit team.

The field of wealth management is primarily concerned with providing financial services primarily for high net worth individuals and ultra high net worth individuals, albeit less wealthy people sometimes seek wealth management services, too.

There are wealth managers who work with individuals who hold assets anywhere from $50,000 to $500,000, and others who prefer to work with high net worth clients and handle millions.

What is Wealth management?

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 elicits information about the client’s wants and tailors a well suitable strategy utilizing appropriate financial products and services.

Also, a wealth management advisor is a high-level professional 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 a wealthy client’s wealth for one set fee.

Why Wealth Management Matters

There is no doubt that wealth management clients are highly sought after by financial institutions and financial service companies.  Many banks that combine traditional banking and wealth management services have specialized sales and service teams to specifically cater to wealth management clients.

Besides, wealth management firms simply provide clients with brokerage accounts, so clients can access virtually any type of investment. In addition to investment services, wealth management clients are provided with tax planning, estate planning, and retirement planning services.

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The Need to Understand Wealth Management

For starters, wealth management is more than just investment advice, as it can include all parts of an individual’s financial life. The idea is that rather than trying to integrate pieces of advice and various products from a series of professionals, high net worth individuals 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.

While the use of a wealth manager is based on the theory that he or she can provide services in any aspect of the financial field, some choose to specialize in particular areas. This may be based on the expertise of the wealth manager in question, or the primary focus of the business within which the wealth manager operates.

In some instances, a wealth management advisor may have to coordinate input from outside financial experts as well as the client’s own agents – attorney, accountants etc. to craft out the optimal strategy to benefit the client. Also, some wealth managers provide banking services or advice on philanthropic activities.

A wealth management advisor needs rich individuals, but not all rich individuals need a wealth management advisor. This service is usually appropriate for wealthy individuals with a broad array of diverse needs.

Wealth Management Business Structures

Wealth managers may work as part of a small-scale business or as part of a larger firm. One generally associated with the finance industry which depends on the business, wealth managers may function under different titles, including financial consultant or financial adviser.

A client may receive services from a single designated wealth manager or may have access to members of a specified wealth management team. The objective is to understand the person they’re dealing with and find out the necessary information like what is important. After the wealth manager understands the client, they can then begin to make informed plans and recommendations. This involves bringing in the necessary experts and financial products to bring about the desired outcome.