The concept of a wealth management strategy is simple: It is a customized plan that you can follow to achieve your financial goals and dreams. If you want a secure financial future, it is imperative that you take the time to develop a financial roadmap. Your strategy should take into account every aspect of your wealth, including your estate, financial, and investment plans.
For many people, wealth management has been conflated with investment planning. However, while investment planning is a significant part of a wealth management strategy, it is not the only part. An effective wealth management system encompasses all aspects of a person’s wealth, from retail banking services, an investment portfolio, and estate planning, to legal advice, tax advice, and regular financial planning.
Investment Advisors vs. Wealth Managers
While investment advisors and wealth managers carry out some of the same functions, it is important to note that there is a difference between the two roles. An investment advisor usually has a particular purpose: planning and/or carrying out investments. A wealth manager, on the other hand, offers a wider array of services to a client, such as insurance reviews, real estate, estate planning, and tax and legal counsel.
Wealth managers take the whole picture into account, rather than just a small part of the client’s total financial health.
The ultimate goal of wealth management is to grow and nourish long-term capital. While wealth managers may not have expertise in every aspect of your estate, they often enlist help from other trusted advisors in a particular field. So, your wealth manager may have lawyers or accountants who they work with that help them understand what the best option is for you and your assets. Some wealth managers even have these experts in-house.
The most important thing to remember about wealth management is that it is a holistic process. It's a strategy that takes into account every single part of your financial assets. Working with a good wealth manager will help ensure you have a bright, stable financial future ahead of you.
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Material discussed is meant for general illustration and/or informational purposes only, and it is not to be construed as investment, tax, or legal advice. Although the information has been gathered from sources believed to be reliable, please note that individual situations can vary. Therefore, the information should be relied upon when coordinated with individual professional advice.