Wealth Management Services

Information may not be reliable

Financial wealth management services are usually reserved for the wealthy and this is because you need to meet a minimum required net worth in order to qualify for these services. The minimum net worth varies from company to company and it is expected that you will be investing a significant amount of money. 

What is wealth management?

Wealth management is a consultative process through which wealth managers extract information from affluent clients about their financial wants and goals. From there, a customized strategy that makes use of a range of financial services and products is created. 

Wealth management services typically consist of providing financial and investment advice, accounting and tax services, and legal and estate planning services. In exchange, wealth managers charge a fee which is usually a percentage of their client’s assets under management.

What you should understand about wealth management

Wealth managers work to build and sustain the wealth of their clients under their management and it involves more than just advising investors. Wealth management services encompass all the parts of a person’s financial life including retirement savings, children’s school expenses, mortgage payment, and other services that are tailored to meet the specific needs of clients. Investors stand to gain a lot of information from the wealth of knowledge that wealth managers have to offer and hiring a wealth management firm offers the advantage of removing emotions when taking investment decisions.

Difference between wealth managers and financial advisors

A financial advisor is a professional that helps clients with a broad range of financial services and is usually involved in investment management and financial planning. It is an umbrella term and so does not refer to a particular kind of advisor. A wealth manager on the other hand is a subset of financial advisors and is a specific type of financial advisor that deals with high net worth clients. Wealth managers manage huge amounts of money for their clients and this is typically what separates wealth advisors from other kinds of financial advisors. They provide a number of services like financial planning, retirement planning, estate planning, philanthropic activities, tax services, banking services, and investment management, bundled into a comprehensive and customized advisory service. The number of services provided depend on the needs of the client.

Even though wealth managers are able to attend to the needs of clients in any area of finances, it is possible for some to specialize based on their expertise or the primary focus of their business. When necessary, a wealth manager may consult or coordinate with the client’s accountant or lawyer in order to create the best wealth management strategy that will benefit the client.

In a case whereby a client with millions of dollars in investable assets would like to have a trust for his grandchildren, apart from investing his funds, a wealth manager would need to provide will and trust services in addition to estate planning services.

The Business Structure of Wealth Management Service Providers

Wealth managers can decide to work independently, as part of a big company or even for a smaller business. The title assigned to a wealth manager may differ depending on the kind of organization they work in, however, they perform the same role whether they are called a wealth manager, financial advisor, or financial consultant. It is not uncommon for a client to have access to different wealth managers in a wealth management team or to be assigned a single wealth manager. It all depends on the company’s business structure. 

Wealth Manager Fees

Wealth managers charge clients in different ways. Some of them are fee based and so earn from fees and commissions on the investment products that they sell. Others charge just a fee and make it a flat fee or charge at an hourly or annual rate. 

Depending on account balances, clients with smaller balances are typically charged more while those with larger balances often pay less, with the average assets under management fee declining as assets increase.

Wealth management doesn’t have to be tedious. We can help you grow your wealth as you continue doing what matters most to you. At AFO Wealth Management Forward, we have a team of professionals available to give the required advice concerning your wealth management needs. Find more information on wealth management advisory services here.