In the world of finance, managing money – especially large sums of money – needs a multi-pronged approach. Wealth managers deal with high-net-worth individuals, making sure their often-complex financial needs are looked after beyond the scope of basic savings and retirement advice. Familiarizing yourself with wealth management can help you make decisions about what services you may need to make the most of your money.
What is Wealth Management?
Wealth management is a professional service that offers financial management advice, investment consultation, tax services, accounting services, legal services, estate planning and retirement support all rolled into one. Typically, all these services are available for a flat fee under the umbrella of "wealth management." Wealth management consultants will also occasionally offer banking services to a client. But the focus of the work is to help the client grow his or her wealth in the short term and make financial plans for the long term.
Why You Need a Wealth Manager
Many people think that wealth managers only offer advice on investments or help manage trust funds for the children of their wealthy clients. But wealth managers offer significantly more value for their fee than that. Outside of investing for maximum returns, a wealth manager can help you select your investments, savings opportunities and retirement options that make the best sense for your stage of life and your dependents or heirs.
Rather than having an investment broker managing investments, another financial professional managing your estate and retirement and still a third resource managing your day-to-day spending, a wealth manager provides a unified service that supports you in every financial aspect of your life. Wealth managers can also help with things like insurance purchases and trust planning. They can also refer you to other professionals should your needs surpass their area of expertise. If you are a high-net-worth individual, working with a wealth manager is an excellent way to ensure that you are making sound investments and have the most beneficial retirement and estate plans in place.
Wealth Management Products on the Market
Wealth management products are entities that are available for purchase as uninsured products. They are sold by Chinese financial institutions and boast a very high rate of interest. These products often offer guaranteed returns, and as of the end of 2016, $4.3 trillion has been invested in them. There are some concerns that these products may destabilize the Chinese economy.
Ashley Friedman graduated from Sarah Lawrence College in 2003 with a Bachelor of Arts in Creative Writing and Social Sciences. She has experience writing copy for the websites of creative professionals, and regularly contributes to several blogs covering popular culture, travel, food, and social action.