Wealth Management is about fully utilising the wealth that you have accumulated by putting that money into investments and utilising tax benefits as much as possible. Wealth Management is a part of Financial Planning but is for those that are already confident in their financial structures and want their money and investments to generate a better return than leaving it on deposit.
Wealth management generates a better return for you than leaving money in the bank. The value of your wealth decreases over time even if you don’t touch it due to service fees and inflation. Look at the low interest rate for a deposit account compared to the inflation rate and then look at the taxes on any interest generated. In effect you are losing money the longer you leave it on deposit.
Adapting your wealth management plan
A Wealth Manager will understand that while your goal is building up capital, there will be times when you’ll need to decrease your contributions or stop them and that will need to be factored into your wealth management structure.
Wealth Management includes comprehensive guidance on a client’s financial situation, including investment management, estate and tax planning, accounting, retirement and succession planning and even legal guidance in some cases.
Wealth management comprises of lifetime planning, building capital, managing capital and succession planning.
You could summarize it as a life well lived and legacy well left.
Financial Planning Standards Board
Certified Financial Planner