What is Wealth Management?
Wealth Management Definition
Wealth Management is a consultative investment advisory service that addresses the financial management needs of affluent clients.
An advisor gleans information about the particular wants and needs of the client and uses a variety of applicable financial products and services to craft a bespoke investment strategy just for that individual.
What Does a Wealth Manager Do?
Wealth managers take a step beyond a typical investment advisor because they offer a holistic spectrum of financial services including investment advice, legal or estate planning, retirement planning, and tax and accounting services, all for a single fee.
When is a Wealth Manager Necessary?
The idea behind a wealth management service is that high-net-worth individuals may benefit from the convenience and holism of having a single advisor that can offer advice and services in a variety of ways.
This prevents these individuals from having to rely on a collection of professionals with more niche skill sets.
That being said, wealth managers may sometimes have to coordinate with other professionals, such as lawyers and accountants, when crafting an optimal strategy for their client.
Wealth management services are particularly appropriate for high-net-worth individuals with a broad range of financial needs.