What Is Wealth Management?

Wealth management is a service that combines advisory and other financial and investment services to fulfil the financial goals of the client.

Wealth managers are most often used by affluent clients.

While anyone, not only affluent clients, can take advantage of a wealth manager, they may have high minimum balances, sometimes up to $500,000 or more.

The goal of a wealth manager is to protect and increase your asset base over the long term.

As such, they can be useful for things like planning for a college fund, retirement planning, and estate planning.

A wealth manager may work independently or as a part of a larger firm, usually a financial institution.

Generally wealth managers offer a suite of services, however some decide to specialize in a particular area.

What Does a Wealth Manager Do?

The objective of a wealth manager is to help their clients meet their financial goals.

They perform a holistic suite of services that encompass all areas of their client’s financial life.

The specific duties of a wealth manager can include:

  • Investment services
  • Retirement account management
  • Tax services
  • Accounting services
  • Long term financial planning
  • Estate planning

Do You Need Wealth Management?

The decision to hire a wealth manager is entirely a personal one.

Strictly speaking, you don’t ever need a wealth manager, however depending on your financial goals, it may be in your best interest.

Some of the advantages of a wealth manager are:

  • It makes it easier to transfer assets
  • They offer holistic services
  • Wealth management is a long term financial approach

Wealth Management Salary

The salary of a wealth manager is dependent on the amount of assets they oversee.

Generally, wealth managers charge a percentage of a client’s portfolio as a commission fee for their services.

Other managers may be fee based, in which case they may charge between $100 and $300 per hour.

Asset Management vs Wealth Management

While asset managers typically only offer investment services, wealth managers provide more holistic financial management.

If your goal is only to make investments, an asset manager may be the better option.

However, wealth managers are a great long term financial solution.

They are especially useful if you have a lot of assets to manage or wish to use a suite of financial vehicles to plan for your future.

What is Wealth Management FAQs

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.
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.
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.
If your goal is only to make investments, an asset manager may be the better option.

True Tamplin, BSc, CEPF®

About the Author
True Tamplin, BSc, CEPF®

True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists.

True is a Certified Educator in Personal Finance (CEPF®), a member of the Society for Advancing Business Editing and Writing, contributes to his financial education site, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics.

To learn more about True, visit his personal website, view his author profile on Amazon, or check out his speaker profile on the CFA Institute website.