wealth management : What it really means

wealth management: What it really means

The term “ wealth management ” is tossed around copiously, in the boardrooms of private client firms, in trade and typical articles and by financial advisors in the face of clients. Still, most professionals are hard pressed to actually describe the term with any degree of accuracy.

Wealth management is very direct. From the wealthy individual’s view, wealth management is merely the science of resolving/enhancing his or her financial status. From the financial advisor’s view, wealth management is the capability of an advisor or advisory team to bring a full range of financial services and products to wealthy clients in an advice-giving way.

Ideally, a wealth manager can offer all financial products available. In actuality, most wealth managers focus on services and products they feel most comfortable with.



A supplementary important quality of wealth management is that it is brought in a consultative manner. By being consultative, wealth managers are truly client-centered. A good wealth manager meets a client without any assumption about what financial products or services are appropriate for that wealthy individual.

While it is usual for a wealthy individual to be sitting with a wealth manager to speak about a particular requirement (investment management, say), the consultative wealth manager’s principal objective is to understand the person and find out what’s significant and why. Then the wealth manager is able to bring in the suitable experts and provide the proper financial products.

In summary:

Wealth management is the advice-giving process of meeting the needs and wants of wealthy clients by providing the proper financial products and services.

Wealth management involves organizing a team of experts to address the needs and wants of wealthy clients.


There’s significant research exhibiting the income advantages of financial advisors who are wealth managers to those that are predominantly investment oriented. In general, a financial advisor transitioning to a wealth manager will see profits increase by 35 percent or more within a year. Hence, if a financial advisor’s annual income was $260,000 before becoming a wealth manager, his or her annual income will be $347,500 within a year.

That said, not all financial advisors are worthy candidates for becoming successful wealth managers. Many financial advisors are doing quite well-running money, for instance, and are not persuaded by character or preference to transition to becoming wealth managers. At the same time, it is quite essential to realize that wealth management is not for all wealthy individuals. It’s usually appropriate for the wealthy with diverse needs and wants.

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