What is wealth management?

Wealth management is a phrase that is encountered on many financial websites, in discussions with financial advisors, and amongst a number of boardrooms all over the world. For most, however, it is a term that does not mean too much and one that can be hard to define. It is in fact a simple concept to understand, it is the managing the process of increasing the value of a person’s financial situation.

In reality wealth management is a service provided only to High Net Worth Individuals (HNWI) who are amongst the elite earners in the world. It is a term used by financial advisors and financial institutions as a way of describing a service that delivers a full range of financial services to that single client. These services include financial planning, portfolio management, and financial advice, although these services vary from client to client and advisor to advisor with wealth management tending to be a bespoke service.

Wealth Management is, therefore, an amalgamation of financial services that all combine with the sole aim of increasing the net value of an individual’s worth. In this article, we take a closer look at three of these financial services that are incorporated into a Wealth Management package.

Financial Planning

A wealth manager will help you plan for the future through a series of financial decisions. They handle all your investments, pensions, tax mitigation, and estate matters, putting into place processes to maintain and enhance the value of each of these. Financial planning with a wealth manager will be based upon your requirements and will be completed via a consultative approach. To learn more about wealth management services, you can find out more by contacting the professionals at Porte Brown, for example. Hopefully, this will help more individuals to improve their wealth portfolio.

Everything is bespoke and all the services planned are deemed to be the best to achieve your personal goals in both the short and long term. Through financial planning companies, you can help build the future that you want for yourself and your family.

Portfolio Management

A key component of any financial portfolio is having a number of investments spread across a number of different methods. Part of a wealth management service would be to look after the day-to-day running of your portfolio, helping you to build a diverse investment plan that should see you meet your investment objectives.

A portfolio does not just include stocks and shares, a diverse portfolio will include ISAs, SIPPS, and other fund structures, although the nature of these investments will be based upon your requirements and expectations. A wealth manager would have a great deal of experience in managing a portfolio and have an understanding of how best to achieve your goals. As with every service provided by a wealth manager you can expect an in-depth consultation to establish the best way forward for you as an individual.

Financial Advisory Services

As well as being able to provide a bespoke financial advisory services package to clients, a wealth manager is a great source for general financial advice. As a manager of your portfolio and being intrinsically involved in planning your future financial services, your wealth manager is incredibly knowledgeable about your financial situation. Combine this with their previous experience within the industry, a wealth manager is well placed to offer you general impartial advice.

All of the above services are generally the core parts of wealth management and most wealth managers will be well skilled in all of these areas. The biggest consideration for an HNWI is the wealth manager themselves, it is a big choice as there are numerous different options available. All the large financial institutions have a wealth management division and there are also a number of smaller, individual firms. It is important to note that not all financial advisors are qualified as wealth managers, so staying with your current financial advisor may not be an option if you are looking for a wealth manager. The most important part of any decision is the knowledge that you can trust and work freely with the individual appointed – it may be that you use recommendations from friends or family to assist you.

A good wealth manager will provide you with financial services that are appropriate to your portfolio and needs, they won’t simply offer a template of services that worked elsewhere. Working with a wealth manager can help affluent individuals manage their assets in a much more streamlined manner and with great levels of success.

This article was provided by Mike James, an independent content writer working with a small number of finance and investment companies – including Private Office, a London based investment consultancy firm – who were consulted over the information contained within this article.

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