A:

Private wealth management is an investment advisory practice that incorporates financial planning, portfolio management and other aggregated financial services for private individuals, not for corporations, trusts, groups or other types of clients.

From the private client's perspective, private wealth management is the practice of solving or enhancing her financial situation and achieving her short-, medium- and long-term financial goals with the help of a financial adviser. From the private financial adviser's perspective, private wealth management is the practice of delivering a full range of financial products and services to an affluent clientele as a financial consultant so that the clientele can achieve specific financial goals.

Private wealth management services can be provided by larger corporate entities such as Charles Schwab, independent financial advisers or multi-licensed portfolio managers who focus on high-net-worth private clients.

Large banks and large brokerage houses offer various investment products to individuals, although many private individuals lack the time, effort or knowledge to manage their finances successfully. To make up for what may be lacking, private individuals seek the consultation of wealth managers who specialize in managing the finances of private individuals, often high-net-worth individuals (HNWI).

The wealth manager sits down with the private individual and goes over the financial goals that the client would like to attain. Then, the wealth manager puts together an investment strategy to help that person achieve her goals. The wealth manager manages the client's money and invests in the investment products that make sense for the client.

RELATED FAQS
  1. What percentage of asset management firms are privately held and not publicly traded?

    Explore asset management firms, a major part of the financial services sector, and learn about the respective markets served ... Read Answer >>
  2. Why are private equity investments usually reserved for rich people?

    Learn what investors without a high net worth can do to invest in private equity investments, and discover the benefits and ... Read Answer >>
  3. What are the major differences between investment banking and private equity?

    Read about the major differences between investment banking and private equity, two iconic financial industries with mixed ... Read Answer >>
Related Articles
  1. Financial Advisor

    Do You Need Wealth Management?

    Wealth management is a service that combines financial and investment advice, accounting and tax services, and legal and estate planning.
  2. Managing Wealth

    The Best Of The Best Wealth Management Firms

    Looking for a fee-only wealth management firm? Here's a handy ranking to get you started on your search for a top financial advisor.
  3. Financial Advisor

    How Big Is the Wealth Management and Financial Advisor Industry?

    Learn about the world's $74 trillion in managed assets, and why the wealth management industry is drastically different following the financial crisis of 2007-2008.
  4. Financial Advisor

    Career Advice: Investment Banking Vs. Wealth Management

    Take a comparative look at two of the most popular career choices in the financial sector, wealth management and investment banking.
  5. Managing Wealth

    Comparing Wealth Management Services: Not So Easy

    It's more than privilege checking, but not exactly private banking. What do bank wealth management services actually deliver?
  6. Managing Wealth

    How to Find the Best Wealth Manager

    Finally there exists a small number of financial advisors who can be considered modern wealth managers. Here's how to find them.
  7. Financial Advisor

    Wealthy Clients: How Advisors Can Nab More of Them

    Wealth management firms still only manage a minority of the assets of high net worth individuals. Here are some insights into how to tap their market.
  8. Managing Wealth

    How To Invest In Private Companies

    It can be tough to analyze a company that doesn't trade publicly, but there are several advantages.
  9. Investing

    Private Wealth Shifting To Asia

    A look at the changing landscape of privately held wealth across the globe
  10. Financial Advisor

    Wealth is Growing Fastest in These Cities

    For those advisors willing to follow the money, these cities are the place to be.
RELATED TERMS
  1. Private Banking

    Personalized financial and banking services that are traditionally ...
  2. Private Equity

    Private Equity is equity capital that is not quoted on a public ...
  3. Privatization

    1. The transfer of ownership of property or businesses from a ...
  4. Wealth

    A measure of the value of all of the assets of worth owned by ...
  5. Family Offices

    Family offices are private wealth management advisory firms that ...
  6. Discretionary Investment Management

    A form of investment management in which buy and sell decisions ...
Hot Definitions
  1. Leveraged Buyout - LBO

    The acquisition of another company using a significant amount of borrowed money (bonds or loans) to meet the cost of acquisition. ...
  2. Current Assets

    A balance sheet account that represents the value of all assets that can reasonably expected to be converted into cash within ...
  3. Tax Liability

    The total amount of tax that an entity is legally obligated to pay to an authority as the result of the occurrence of a taxable ...
  4. Preferred Stock

    A class of ownership in a corporation that has a higher claim on its assets and earnings than common stock. Preferred shares ...
  5. Net Profit Margin

    Net Margin is the ratio of net profits to revenues for a company or business segment - typically expressed as a percentage ...
  6. Gross Margin

    A company's total sales revenue minus its cost of goods sold, divided by the total sales revenue, expressed as a percentage. ...
Trading Center