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What Is Wealth Management & Who Needs It?

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What Is Wealth Management & Who Needs It?

You might have come across terms like financial planning and wealth management. While all these terms indicate services relating to managing your financial matters, it can be confusing to understand the exact differences. The primary difference between financial planning and wealth management is the goal. Financial planning is a broad concept that aims to meet short-term goals like making a down payment along with long-term objectives such as saving for retirement. Wealth management, on the other hand, focuses on the long-term goal of preserving and growing your wealth over time. Both financial planning and wealth management helps you manage your finances, but wealth management is specifically for high-net-worth individuals who already have existing wealth.

Meaning of Wealth Management

Wealth management is typically for high-net-worth individuals or organizations that need to achieve certain objectives, such as increasing investment returns. It involves handling the assets of wealthy individuals or businesses. This specialized financial service is offered by a certified wealth manager to consider your financial goals and risk appetite to create a plan. Depending on your situation, the wealth manager creates an investment plan by recommending different financial instruments. It also includes considering tax rebates and exemptions. Wealth management also helps in mitigating economic risks like inflation through long-term investments in stable assets.

Effective wealth management helps clients reach their financial goals. This involves reducing debts and improving cash flow to improve your financial situation. As a comprehensive advisory service, it also includes estate planning to ensure that your assets are passed on to the right people after death. So, Wealth Management service includes:

  • Investment advice
  • Estate Planning
  • Insurance Advice
  • Retirement Planning
  • Accounting services
  • Charitable giving plans
  • Education planning
  • Risk mitigation
  • Tax services
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Importance of Wealth Management

Seeking wealth management services provides a range of benefits. A wealth management adviser can provide you with multiple services to help you manage your money efficiently. An experienced wealth manager can assist during major life events such as during retirement or childbirth. A typical wealth management plan includes asset allocation, retirement planning, investment planning, estate planning, insurance, taxation, and more. Your wealth manager can diversify your portfolio by investing in assets like stocks, bonds, and cash to reduce the overall risk. Wealth management ensures that you have a comfortable retirement and get a high return on investments. The goal is to help you grow money while ensuring risk protection. You get prepared for market ups and downs with a sound financial strategy.

Working with a wealth advisor means getting access to all the needed financial information necessary to make major financial decisions. This type of financial service safeguards your family’s future and gives you peace of mind. Valuable insights by an expert give you more confidence about your financial and investment decisions. Wealth management goes beyond investment advice and covers all parts of your financial life. This specialized financial service includes:

  • Setting financial goals
  • Managing investment & finances
  • Steps to preserve & maximize overall wealth
  • Strategy for passing wealth
  • And more!

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