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What’s Wealth Management?


The utmost level of financial planning services is wealth management. Comprehensive investment management and financial counseling, tax advice, estate planning, and even legal support are all part of wealth management.

A wealth management firm’s services are ideally suited to high-net-worth individuals. However, even if you don’t require wealth management right now, your demands will likely change in the future. It could be appropriate to look into wealth management at some point.

Wealth management firms provide investment management and complete financial guidance. On behalf of their clients, wealth managers tackle complex economic challenges and coordinate with financial experts.

What is Wealth Management?

The most advanced kind of financial adviser service is wealth management. A wealth advisor often develops a custom investing strategy and plan to assist their clients in managing their assets.

Wealth managers cater to the ultra-wealthy and may know financial issues that impact them, such as avoiding the estate tax. They frequently organize services among several professionals on your behalf, such as working with a lawyer or an accountant.

The following are some of the services that are typically included in wealth management:

Ø Investment management

Ø Philanthropy advice

Ø Financial planning

Ø Retirement planning

Ø Legal planning 

Ø Estate planning

Ø Accounting and tax services

Strategies used in Wealth Management

Many wealth managers can help with any facet of the financial industry, but some specialize in specific areas, such as cross-border wealth management. This could be based on a wealth manager’s skill or the principal emphasis of the business in which the wealth manager works.

A wealth manager adjusts your finances to meet your economic hierarchy, much like a tailor fixes a suit to fit you perfectly. They’ll get to know you and your financial circumstances before coming up with methods and a game plan that works for you.

How will a wealth manager assist you in achieving your goals? Listed below are some of the strategies a wealth manager may use to advise their clients and help grow and protect their wealth: 

1. Establish financial objectives.

A financial manager can help you define specific goals that will move you closer to making your dream retirement a reality, whether you want to travel the world in retirement or join a charity organization (or both!)


2. Make the most of your investment opportunities.

Like most investing professionals, a wealth manager can assist you in selecting growth stock mutual funds that have a proven track record of performance and will help you grow your money. They can also assist you in pursuing other avenues for increasing your wealth, such as real estate investing.

3. Optimize your tax position.

Most people who need a wealth manager are in the highest tax bracket, which means they owe the IRS a significant amount of money! We’re all in favor of paying Uncle Sam what he’s owed, but no more. Wealth managers can assist you in developing wiser investing strategies that will allow you to keep more of what you earn rather than losing it to taxes.

4. Make sure you have the correct insurance in place.

If you have a net worth of more than $500,000, you should consider umbrella insurance, a type of liability insurance that protects you against huge claims or lawsuits. For example, one terrible vehicle accident could result in millions of dollars in damages and injuries, forcing you to dip into your retirement assets or go back into debt to cover the bills. Umbrella insurance can protect you from a slew of high-priced legal fees.

5. Establish or revise an estate plan.

Too many families have been torn apart because a family member died without leaving clear instructions on dividing what was left behind. Don’t allow that to happen to you. When it comes to estate planning, having a plan in place for all of your belongings after you pass away is essential. That means everyone is aware of who will receive what. Being clear is nice, and a qualified money manager can guide you through the process.

How much do you need for wealth management?

In a nutshell, most wealth management services have high account minimums. Fidelity’s “private wealth management service,” in which you have a full team of financial professionals working on your behalf, for example, requires at least $2 million in Fidelity Wealth Services investments and $10 million or more in total investible assets.

Fidelity also provides a simpler “wealth management” service, which requires a $250,000 account minimum and involves working with an individual advisor.

Another online brokerage, Vanguard, offers a variety of financial advising services, one of which, dubbed “asset management,” needs a minimum investment of $5 million.

Do I need it?

A wealth manager should be able to help you with all of your financial planning needs, such as dealing with the tax implications of business income and establishing a donor-advised fund for charitable contributions.

While financial planners and wealth managers may provide similar services, they frequently offer services on an “a la carte” basis. If all you need is help to figure out how to meet your retirement income needs, for example, some financial planners will work with you to establish a retirement income plan, and you only pay for that service.

If you require assistance with estate planning, specialized tax counsel, or investment guidance, it may be worthwhile to seek professional aid now to safeguard and preserve your assets later.

Credentials for Wealth Managers

Check a professional’s qualifications to evaluate which designation and training would be ideal for your needs and situation. Certified Financial Planner, Chartered Financial Analyst, and Personal Financial Specialist are the top three professional advisor credentials. Many professional certification organizations’ websites allow you to check whether a member is in good standing or has received disciplinary action or received complaints.

Professional designations are explained in a tool developed by the financial industry regulator (FINRA). You can also check to see if the issuing body mandates continuous education, accepts complaints, or provides a mechanism to verify who possesses the credentials.