Reviewed by Feb 19, 2021| Updated on
Wealth management is a branch of financial services dealing with the investment needs of affluent clients. These are specialised advisory services catering to the investment management needs of affluent clients.
Wealth management is a consultative process. It involves consultations with affluent clients, discussions on their financial needs and goals.
Wealth management plans are tailored to client-specific needs. The financial products are combined to effectively reach the financial goals of the client.
The advisory services entail the handling of client sensitive information. Investment advisors have to maintain the confidentiality of information obtained during the course of financial planning and advisory services.
A wealth management advisor utilizes the diverse financial disciplines such as financial and accounting, and tax services, investment advice, legal or estate planning, and retirement planning, to manage an affluent client's wealth as a bundle of services.
Wealth management is different from investment advice. The former is a more holistic approach in which a single manager coordinates all the services needed to manage their money and plan for the client's needs, including the current and future needs of the client's family.
While most wealth managers provide services in any financial field, certain wealth managers specialize in specific areas of finance. The specialisation would be based on the area of expertise of the wealth manager.
Wealth management services are usually appropriate for wealthy individuals who have a broad array of diverse needs. The advisors are high-level professionals and experts.
Wealth managers may work individually as a single person, or as part of a small-scale business or as part of a larger firm. Based on the nature of the business, wealth managers may function under different titles, which include financial consultant or financial adviser. A client may receive services from a single designated wealth manager or may have access to the members of a specified wealth management team.