What is Wealth Management?

Wealth management is an investment advisory service that combines other financial services to address the needs of affluent clients. Using a consultative process, the advisor gleans information about the client's wants and specific situation, then tailors a personalized strategy that uses a range of financial products and services.

Often, a holistic approach is taken within wealth management. To meet the complex needs of a client, a broad range of services such as investment advice, estate planning, accounting, retirement, and tax services-may be provided. While fee structures vary across comprehensive wealth management services, typically, fees are based on a client's assets under management (AUM).

Wealth management is more than just investment advice. It can encompass all parts of a person's financial life. Instead of attempting to integrate pieces of advice and various products from multiple professionals, high net worth individuals may be more likely to benefit from an integrated approach. In this method, a wealth manager coordinates the services needed to manage their clients' assets, along with creating a strategic plan for their current and future needs-whether it is will and trust services or business succession plans.

Strategies of a Wealth Manager

The wealth manager starts by developing a plan that will maintain and increase a client's wealth based on their financial situation, goals, and risk tolerance.

Importantly, each part of a client's financial picture, whether it is tax planning or wills and estates, are coordinated together to protect the wealth of the client. This may coincide with financial projections and retirement planning.

After the original plan is developed, the manager meets regularly with clients to update goals, review, and rebalance the financial portfolio. At the same time, they may investigate whether additional services are needed, with the ultimate goal being to remain in the client's service throughout their lifetime.