Wealth Management


DEFINITION of 'Wealth Management'

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.


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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?

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  1. Under what circumstances would I require private wealth management?

    An investor who is a high-net-worth individual (HNWI) may require private wealth management services. HNWIs have unique financial ... Read Full Answer >>
  2. What is private wealth management?

    Private wealth management is an investment advisory practice that incorporates financial planning, portfolio management and ... Read Full Answer >>
  3. Can personal loans be included in bankruptcy?

    Personal loans from friends, family and employers fall under common categories of debt that can be discharged in the case ... Read Full Answer >>
  4. How much money does Texas make from unclaimed property each year?

    In 2014, the office of the Texas Comptroller of Public Accounts reported $234 million in unclaimed property claimant liabilities, ... Read Full Answer >>
  5. Are Cafeteria plans subject to FICA, ERISA or FUTA?

    Cafeteria plans are employer-sponsored benefit plans that provide both taxable and nontaxable, or qualified, benefit options ... Read Full Answer >>
  6. How much money does Michigan make from unclaimed property each year?

    According to the 2013-2014 Annual Report of the State Treasurer, the state of Michigan earned only $82,875 in abandoned and ... Read Full Answer >>

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