Understanding Wealth Management

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When thinking about your finances, you might have come across the term wealth management. If you have been working for many years or possibly your retirement is near, you might want to know what wealth management is. So, let’s find out! People who have worked hard and made significant investments need to find a solution to protect their wealth and minimize taxes. Affluent families or individuals who have built an empire worth millions of dollars come under a higher tax bracket. These high-net-worth individuals need financial advice to ensure that their assets are well protected. Even those who don’t have millions of dollars might need advice from professional financial planners to better manage their finances. Some high-net-worth individuals want to ensure that they leave behind a legacy for their future generation while some might want to find a way to serve the community with their wealth. No matter what your goal is, you might need wealth management services. Still confused about what wealth management is? Keep reading to know more about it!

What is Wealth Management?

Wealth management is a type of financial service specifically offered to high-net-worth individuals to help them grow their wealth, minimize financial risks, and protect assets. It is an investment advisory service that is tailored to meet the needs of affluent clients. As the highest level of financial planning, multiple services are included in wealth management such as financial advice, tax guidance, estate planning, and even legal assistance. It is a comprehensive service that involves developing tailored investment strategies and financial plans for affluent clients.  This type of service is offered by certified wealth management firms that have the experience to deliver a complete range of financial services.

It is a consultative process that helps in meeting the unique needs of clients by providing every single financial product in existence. A wealth management advisor not only provides investment advice but develops a plan that includes all aspects of a person’s financial life. This type of service is not needed for everyone, only individuals with assets and a wealth of millions of dollars need a comprehensive wealth plan.

Benefits of Wealth Management

Wealth management means creating a financial plan tailored to client-specific needs. A qualified wealth manager considers the financial goals of their clients to provide a range of services such as estate planning, taxation, retirement plan, and even cross-border wealth management. Unlike an average investor, high net worth individuals with millions or even billions of dollars have complicated tax filing needs, complex investment portfolios, income from multiple businesses, assets in different countries, and many other specific needs. For handling income and assets from diverse sources, affluent individuals and families need a dedicated wealth manager. Wealth managers provide investment and financial counseling to ensure that their clients achieve certain financial goals. It also includes estate planning and providing suggestions for fund allocation to ensure financial security. However, not all financial planners are capable of offering this type of service. It is important to find a Chartered Financial Analyst (CFA), or Certified Financial Planner (CFP), or Chartered Wealth Manager (CWM).

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