Wealth Management is the highest level of financial planning services for accredited investors and affluent clients. A wealth advisor typically creates a specially tailored investment strategy and plan for their clients to help them protect their assets, grow their wealth, and reduce their financial risks. This customized strategy is aligned with the client’s goals and how much risk they are willing to take. To do this, wealth managers work closely with their clients to understand their assets, finances, and goals.
Wealth management firm offers various financial services such as investment management, comprehensive financial advice, tax guidance, estate planning, handling complex financial issues, and even providing legal assistance directed at clients’ investment needs. They often coordinate services among experts, such as working with a lawyer or an accountant on the client’s behalf.
Firms vary in their approaches, services, and scope. The firm may range from a small business venture that outsources its services to large multi-advisor firms with in-house accountants and lawyers. Depending on the business, wealth managers may function under different titles such as investment consultant, financial planner, and wealth manager.
It takes years of education and experience for a wealth manager to learn and understand financial markets and investment strategies. Their expertise may vary across different firms. Advisors employed in an investment firm may have more knowledge in investment strategy, while those who work for a bank may focus on management trusts and credit options. Furthermore, a client may receive services from a single designated wealth manager or to a specified wealth management team.
Wealth managers charge their services in several ways. Some charge annual, hourly, or flat fees, while some work on commission and are paid through the investments they sell or the percentage of the asset they manage. The costs can vary between and across different accounts within the same firm, starting around 1% of the asset under management.
