Wealth Management

Having wealth means you need to learn the language of financial advisors. Read up on private banking, establishing a family office and other ways to get the job done.
Frequently Asked Questions
  • What are the best investments for young people?

    Young adults should begin to build a well-diversified portfolio of the major asset classes that include mutual funds or exchange traded funds (ETFs) that cover major indices of domestic and foreign stocks and fixed income securities. The portfolio should be rebalanced on a recurring periodic basis so that it continues to align with investor’s risk tolerance and investment style.

  • What is a fiduciary standard?

    A fiduciary standard is a legal and ethical requirement on the part of registered investment advisors to put the financial interests of their clients above their own. This means that financial advisors can not sell or otherwise steer client investments toward commissioned-based investments that might be in their own financial interests unless they can prove they would be of primary benefit to the client.

  • What problems do people encounter with financial advisors?

    Some common complaints expressed by investors concerning their financial advisors include that they only promote investment products that benefit themselves through high commissions, promising unrealistic investment returns, not providing enough information about what they sell and not being responsive to client inquiries. As more financial advisors adhere to fiduciary standards these types of complaints should become less common, however.

  • What’s the difference between wealth management and private banking?

    Wealth management generally refers to financial advisory and investment management services for high net worth individuals. Private banking is offered by commercial banking institutions and also offers investment advisory and management services that also includes dedicated banking and trust management services tailored to high net worth individuals.

  • What’s the best way to manage wealth during a recession?

    Managing wealth during economic downturns generally entails strategies to preserve capital through shifting investments toward fixed income and other asset classes that tend to be negatively correlated with equities. Within equity investments certain sectors of the economy also tend to outperform others such as utilities, industrial goods and defense stocks. Wealth management services can be particularly valuable during recessionary periods as their down-market strategies are often more sophisticated than self-directed individual investors can plan and execute.

Key Terms

Explore Wealth Management

What Is the Difference Between Risk Tolerance and Risk Capacity?
What Is Cliff Vesting?
An ascending stack of coins in a photo studio. It looks like it is meant to symbolize growth
The Best Investments for Young Adults
Hands going over paperwork for different accounts
Unified Managed Account (UMA)
A woman, presumably a mother, teaches her child how to fish in a small forest lake.
What to Do With a Large Inheritance
Earn more airline miles credit card on reflective dark background.
7 Top Ways to Earn Airline Miles
Couple on Board Ship
6 Investing Mistakes the Ultra Wealthy Don't Make
What Is a Family Office?
Risk Averse
A sleek private jet waiting on the runway with the boarding ladder down.
Buying vs. Leasing a Private Jet
Dave Ramsey's Total Money Makeover LIVE
Who Is Dave Ramsey?
Is It Time for a Universal Basic Income?
Assets That Increase Your Net Worth
Savings
10 Steps to Financial Security Before Age 30
How to Avoid Financial Advisor Scams
A golden dollar sign with a graph showing a positive uptick in the background.
Tips to Increase Your Net Worth
Businessman using laptop.
Goal-Based Investing
Private Banking: How the 1% Handles Money
Man holding a tablet with market chart.
Widely Held Fixed Investment Trust (WHFIT) Definition
Exterior of New York Stock Exchange
Unified Managed Household Account (UMHA)
5 Articles to Refresh Your Financial Literacy
An hourglass filling up on a stack of one dollar bills.
Investing in a Unit Investment Trust
Glasses and a pen resting on hundred-dollar-bills and stock sheets.
5 Facts Financial Advisors Wish You Knew
6 Things Bad Financial Advisors Do
A businesswoman leading discussion during meeting in office conference room.
7 Financial Lessons to Master by Age 30
7 Ways to Recession-Proof Your Life
4 Signs Your Financial Advisor Is Ripping You Off
Wrap It Up: Terms and Benefits of Managed Money
An enter key that says vested, with percentages
What Does It Mean to Be Fully Vested?
Financial Plan vs. Financial Forecast: What's the Difference?
Market Forces at Work - Institutional Investors and a Sustainable World
Non-Accredited Investor
Idle Funds
Early Withdrawal Definition
Comfortable male gay couple in striped socks relaxing, watching TV on living room sofa
Common Law Property
Risk
Management Risk
Receiver Definition
Financial Power of Attorney
Abstract mirror building texture
What Is the Subjective Theory of Value?
Close up of female accountant or banker making calculations
Regulation M
Window Guaranteed Investment Contract Definition
The full metal jacket is the only small arms bullet generally acceptable for shooting people at war.
Bullet GIC Definition
Financial Planning for Professional Athletes: An Inside Look
Couple on a private jet using a laptop and tablet
The Economics of Private Jets
How Do You Calculate Net Current Assets in Excel?
Managing Large Amounts of Sudden Wealth
6 Ways To Boost Your Human Capital