A wealth manager is a type of investment advisor who typically works with high net-worth individuals, but what does a wealth manager do? Typically, a wealth manager provides comprehensive financial services, including asset management, financial planning, estate planning and much more. While a wealth manager is a generally accepted term, there is no specific definition, which means the services offered may vary. Here are a few of the key services you can expect a wealth manager to provide and how they can help you build your wealth.
Any investment advisor will help you invest your assets, but a wealth manager will actively manage (or oversee the management) of your investments. This could include investments in stocks and bonds, but may also include real estate, cryptocurrencies, hedge funds, etc. While building wealth is always a goal, asset management may consider additional factors, such as how different investment vehicles may be better suited to meet goals with different time horizons. A wealth manager should also consider the tax implications of your portfolio and include services such as rebalancing, which ensure your portfolio does not drift away from its intended asset allocation.
Only once a wealth manager fully understands your unique circumstances can they create a financial plan specifically tailored to your needs. Therefore, a wealth manager should take the time to get to know you, your financial goals, your current financial circumstances, your priorities and much more. And as your needs and priorities change, so should your financial plan. Periodically, or after a financially impactful event, your wealth manager should update your plan to ensure it’s still appropriate. For example, after the birth of grandchildren, your number one priority in retirement may shift from traveling the world to spending time and resources to help support your grandchildren.
Taxes are an unavoidable part of life, but plenty of strategies exist to help you limit the burden. Especially for high net-worth or ultra-high net-worth individuals, a tax advantaged portfolio can make a major difference in how much you pay. Wealth managers are typically well-versed in the complex and ever-changing tax laws or the wealth management firm may work with individuals whose sole responsibility is creating the most tax efficient plan for clients.
Charitable Giving and Estate Planning
As a high net-worth individual, you may have the ability to support the causes and people you care about, but this privilege also comes with a lot of responsibility. How do you give to charity in the most impactful way possible? What is the best way to support future generations? What is your ultimate goal when giving money to charities or loved ones and how can you make sure that goal is met? Working with a wealth manager can help you answer all these questions and more, to create a concrete plan that allows for the most impactful giving possible.
What Does a Wealth Manager Do? The Takeaway
So, what does a wealth manager do? The short answer is: a lot. If you’re in need of comprehensive financial services, you will likely find a wealth manager best suited to meet your needs. Contact us to schedule an appointment to find out more about wealth management.
Sec.gov, "Regulation of Investment Advisers"
CFAInstitute.org, "What Is a Private Wealth Manager?"
Investopedia.com, "What Is Wealth Management?"
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If you are currently looking for help with wealth management, contact us. We are happy to schedule an introductory meeting at your convenience.