Wealth Management

Loading the player...

What is 'Wealth Management'

Wealth management is a high-level professional service that combines financial/investment advice, accounting/tax services, retirement planning and legal/estate planning for one fee. Clients work with a single wealth manager who coordinates input from financial experts and can include coordinating advice from the client's own attorney, accountants and insurance agent. Some wealth managers also provide banking services or advice on philanthropic activities.

BREAKING DOWN 'Wealth Management'

In general, wealth management is more than just investment advice, as it can encompass all parts of a person's financial life. The idea is that rather than trying to make sense of advice from a series of professionals, high net worth individuals benefit from a holistic approach in which a single manager coordinates all the services needed to manage their money and plan for their own and/or their family's current and future needs.

The wealth manager starts by developing a plan that will maintain and increase the client's wealth based on that individual's financial situation, goals and comfort level with risk. After the original plan is developed, the manager meets regularly with clients to update goals, review and rebalance the financial portfolio, investigate whether additional services are needed and ideally, follow clients throughout their life.

Wealth managers are often part of a wealth-management firm, with access to a team of in-house experts and services, but may also be solo practitioners who rely on their own network of independent experts. Management fees vary widely and should be researched thoroughly before engaging a wealth manager. For more information, see The Best of the Best Wealth Management Firms and What is private wealth management?

RELATED TERMS
  1. Private Banking

    Personalized financial and banking services that are traditionally ...
  2. Financial Adviser

    A professional who helps individuals manage their finances by ...
  3. Multiple Managers

    A situation that occurs when an investment portfolio's assets ...
  4. Execution Only

    A trading service that is restricted to execution of trades only, ...
  5. Management Fee

    A charge levied by an investment manager for managing an investment ...
  6. Investment Advice

    Any recommendation or guidance that attempts to educate, inform ...
Related Articles
  1. Professionals

    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.
  2. Personal Wealth & Private Banking

    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?
  3. Personal Wealth & Private Banking

    How to Measure Wealth

    Wealth is the value of all assets a person, company, country or other entity owns, minus all owed debts.
  4. Financial Advisors

    Wealthy Clients are Thirsty for Better Advice

    New research uncovers the ultra-weathy's fast-growing demand for better, in-depth investment advice.
  5. Financial Advisors

    What the Wealthy Want Most from Their Advisors

    Global wealth is rising and expected to continue. Advisors should know that the wealthy value fee transparency, performance.
  6. Financial Advisors

    Do Big Inheritances Do More Harm Than Good?

    Most wealthy parents plan to pass on their wealth, but few have had discussions with their heirs. Financial advisors should broach the issue with clients.
  7. Personal Finance

    Top Tips for Helping Clients Sustain Wealth

    High-net-worth individuals face a number of potential challenges when passing wealth down, but it is possible to build generational wealth.
  8. Investing

    Return on Brokerage Client Assets: A Look at Morgan Stanley

    Revenues and profits in securities brokerage and wealth management are driven by the return on client's assets. We explain how to derive this metric.
  9. Budgeting

    Top 3 Trends Affecting Private Wealth Management

    Don't miss out on high-net-worth clients because you aren't prepared for their service demands.
  10. Financial Advisor Technology

    How Financial Advisors Can Adjust to Robo-advisors

    Advisors wary of robo-advisors should consider cutting their fees, being more tech-savvy and providing more specialized and personalized service.
RELATED FAQS
  1. Under what circumstances would I require private wealth management?

    Learn why many high-net-worth individuals may prefer private wealth management services, and understand how these firms charge ... Read Answer >>
  2. What is the financial services sector?

    Go beyond banks and credit unions to learn about the diverse group of companies that make up the fast-growing financial services ... Read Answer >>
  3. 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 >>
  4. What other sectors are most similar to financial services?

    Learn about the various components of the financial services sector as the main economic area that allows countries to export ... Read Answer >>
  5. What should you take into consideration when choosing a portfolio management service?

    Understand several important issues and considerations when evaluating and choosing a potential portfolio manager and why ... Read Answer >>
  6. How long do typical debt management plans take to pay off debt?

    Find out more about how debt management plans are administered and what circumstances determine how long a management plan ... Read Answer >>
Hot Definitions
  1. Labor Market

    The labor market refers to the supply and demand for labor, in which employees provide the supply and employers the demand. ...
  2. Demand Curve

    The demand curve is a graphical representation of the relationship between the price of a good or service and the quantity ...
  3. Goldilocks Economy

    An economy that is not so hot that it causes inflation, and not so cold that it causes a recession. This term is used to ...
  4. White Squire

    Very similar to a "white knight", but instead of purchasing a majority interest, the squire purchases a lesser interest in ...
  5. MACD Technical Indicator

    Moving Average Convergence Divergence (or MACD) is a trend-following momentum indicator that shows the relationship between ...
  6. Over-The-Counter - OTC

    Over-The-Counter (or OTC) is a security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, ...
Trading Center