When it comes to financial planning, many people wonder whether they need wealth management services. You might have heard the term wealth management from your financial advisor or a friend. However, to find out whether you need this type of service or not, it is important to first understand what wealth management is.

Wealth Management

So, let’s find out the meaning and importance of wealth management services.

What is Wealth Management?

Wealth management is a specialized financial service for high-net-worth individuals. Accredited investors and other people with high net worth need more comprehensive financial services to manage their complex investment portfolios. The services offered by traditional financial advisors are not suited for high-net-worth families because of their diverse investment and assets portfolio. They need to hire a wealth manager to get a detailed plan for their investment, estate, taxes, and more. Affluent clients with millions or billions of dollars need specialized investment advisory to address their specific needs.

Unlike an average investor, affluent individuals have complicated tax situations, income from multiple businesses, and diverse investment portfolios. A Certified Financial Planner can provide wealth management services that include a wide range of financial products and services to meet their client’s unique needs. The wealth managers consider several factors to develop customized strategies.

It is important here to understand that wealth management and portfolio management aren’t the same things. These are two different types of financial services. Portfolio management doesn’t include a complete financial strategy. It only considers the investment portfolio of the client and aims to increase returns by focusing on proper asset allocation.

Portfolio management has nothing to do with other financial needs of clients such as taxation and estate planning. Wealth management, on the other hand, is a broad service that involves a holistic approach to tailor a personalized strategy in a consultative way. So, wealth management includes multiple services such as:

  • Investment Management
  • Retirement Planning
  • Estate Planning
  • Cross-Border Taxation
  • Charitable Plans
  • And much more!


Importance of Wealth Management

As mentioned above, wealth management is much more than simple investment advice. It is a comprehensive service that benefits high-net-worth individuals. From updating Will and trust to managing assets and business succession plans, wealth managers consider all aspects of an individual’s financial life. Depending on your specific financial situation, you may choose to get a complete financial plan for your current and future needs or you may focus on a specific area like cross-border wealth management. If you’re still confused about why you might need wealth management services, here are some reasons to seek this type of financial service.

  • Personalized Services

The best financial firms offer customized Wealth Management services to suit the specific financial needs of each client. When it comes to wealth management, there is no one-size-fits-all solution. The qualified financial planners carefully evaluate each aspect of your investments, income, tax, and assets to understand your financial situation. They tweak and adjust the finance and investment plans to ensure the best outcome.

  • Avoid Double Taxation

Most high-net-worth individuals have businesses and assets across borders. For these individuals and families, it is important to find solutions that help in avoiding double taxation. Your wealth manager will not only provide investment advice but can also help in handling cross-border taxation.

  • Achieve Financial Goals

Affluent people have investments and assets worth millions of dollars. It can be cumbersome to manage taxes, investment, and assets while running a multi-national business. Also, while you’re busy handling your work, it is important to think about the future of your loved ones. Will and Trusts need to be updated with life changes to ensure that your future generation inherits your legacy. An experienced wealth manager can help you achieve your financial goals in the most efficient way.

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