Money Talk With Slater

Making Money Across the Board

What is Wealth Management (Part I)? 

When it comes to wealth management, speaking with an advisor will help you stay on track with your finances. 

An affluent retiree desiring to visit every country might define wealth management way differently than a 30-something small business owner wanting to push his or her enterprise past those critical first three years. Talk to a banker and a stockbroker about wealth management, and you’re going to get two very different viewpoints. Here’s the issue: every definition would be right.

That’s because, in the finance world, wealth management isn’t just one thing; it’s everything. It’s like financial planning, but more widespread.

Broadly speaking, wealth management rolls financial and investment advice, risk and insurance planning, accounting, taxes, retirement planning, legal advice, estate planning and more all into one. Someone who is managing your wealth keeps an eye on all these important parts of your financial picture and connects them in a way that keeps you on track to accomplish your long-term objectives.

Though, wealth management isn’t just number-crunching and moving funds from account to account. It goes far deeper than that. Here are some of the main characteristics that make wealth management truly distinctive.

All-Encompassing

If you have a life insurance policy, you worked with an agent. For that business loan, you possibly met with a banker. During tax season, you might go to your accountant’s office to crunch the numbers. Need legal advice? You call an attorney.

All these folks are working in your best interest when you come to them for help. But they’re also driving in their individual lanes. No one is really seeing your whole financial picture. For instance, given your current asset allocation in your retirement funds, where does your life insurance policy fit in? That’s not of much concern to a banker managing your loan, but it really would be to an advisor managing your wealth.

A wealth management advisor will make sure no individual part disturbs the balance of the whole.

 

 

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