What Is Wealth Management? Overview, Types, And Process

Wealth management can be thought of as a broad service focused on taking a holistic look at a client’s financial picture, including services such as investment management, financial planning, tax planning, and estate planning.

Below is all you need to know about the wealth management process. Continue reading to learn about the topic and its diversities.

What Is Wealth Management?

Wealth Management is a consultancy service that gives financial advice to affluent, high-net-worth, ultra-high-net-worth people and families of the society.

It is a practice that helps to structure and plan wealth to support its growth, preservation, and protection. A large part of wealth management has to do with structuring customer taxes according to their wishes. Wealth management process incorporates tax planning, wealth protection, estate planning, succession planning, and family and governance.

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How Does Wealth Management Work?

A wealth management strategy incorporates the use of services, processes, and products that function for developing and understanding one’s wealth. It should not be mistaken for just investment advice.

The level of one’s wealth determines whether services and products are affordable because not everyone can afford these services. Therefore, it is not wise if one has got different people from individual providers in a consultative approach. I advise high-net-worth individuals to employ an integrated approach rather than attempt to get advice or products from different professionals. 

The wealth management process not only creates a methodological plan for his client’s future and present needs but also coordinates services needed to manage clients’ services. This can be for will and trust services or business succession strategies.

Wealth managers are skilled in any financial field, but some have areas of specialization. This is solely on the amount of knowledge, the primary focus of the business, or the area in which the wealth manager manages. 

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Key Wealth Management Objectives

Wealth management objectives will differ based on the investor. Each client’s needs and situation are different, and good wealth advisors will tailor their advice accordingly.

Some key wealth management objectives for clients include:

  • Setting financial goals and designing strategies to achieve those goals
  • Helping clients maximize their overall wealth
  • Managing their investments and finances
  • Setting strategies for passing on their wealth, also known as estate planning

Levels Of Wealth

There are three categories. We have:

1. Little Wealth

This class of individuals and families can keep a roof over their heads with food on the table but lack the extra reserves to preserve their limited wealth. But, they cannot afford the associated services or products for the safekeeping of their minimal wealth. Thereby they are not liable for the wealth management process.

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2. Moderate Wealth

These classes of people are called the middle class. They are more capable than the little wealthy in the sense that the individuals and families under this category can afford to implement ways or products to grow, preserve and protect their wealth.

Moderate wealth owners have resources to buy insurance policies, plan for education or rent, increment, or require the services of an estate planning attorney so they are perfect for the wealth management process.

Great Wealth

Heavy is the head that wears the crown is a saying that relates to those who hold great wealth. The affluent are particularly in need of a wealth management process to manage the greater complexities that are associated with this status.

Wealth Management Processes For Protecting Wealth

There are six steps to successfully managing your wealth. These processes help to attain financial independence. They are:

1. Gathering Data

A wealth manager needs to gather information about the client’s financial situation. Subsequently, there should be a thorough discussion or action before proceeding with the analysis. The information needed is about

  • Asset
  • Liabilities
  • Monthly cash expenditures
  • Incomes tax situation
  • Wills and trusts 
  • Insurance contracts
  • Retirement assets

2. Establishing Objectives

 After gathering data, it is essential to determine your financial goal and objectives. Your wealth manager is concerned about the client’s wishes and needs in the future.

The wealth management firm should discuss and make a plan based on your desires using economic trends that help to develop realistic tactics. The considerations are:

 Investment Planning

  • Determining Investment Temperament & Risk Tolerance
  • Setting Investment Goals
  • Selecting Investment Variables
  • Monitoring Investment Portfolio

Retirement Planning

  • Targeting Retirement Age
  • Retirement Plan Selection and Design
  • Targeting Income Needs at Retirement
  • Distribution Alternatives & IRA Rollover Options
  • Design of Deferred Compensation Plans

Cash Flow Analysis

  • Identifying Income Sources
  • Projecting Living Expenses
  • Implementing Methods to Improve Cash Flow

Income Tax Planning

  • Methods of Reducing Tax
  • Tax Deferral Techniques
  • Income Shifting Techniques

Insurance Planning

  • Determining Life Insurance Needs
  • Disability Insurance Needs
  • Determining Long Term Care Insurance Needs
  • Selecting Insurance Products

Business Planning

  • Selecting a Business Entity
  • Techniques for Transferring Ownership
  • Employee Benefit Plans

Education Planning

  • Targeting Cash Needs for Education
  • Selecting Methods for Funding Education

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3. Processing And Analysis of information

After they have stated the objectives, then analyzing the financial information to develop a strategy begins. This is to catapult your financial plan by paying attention to the important parts of the plan.

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Other Processes

Recommending A Total Plan

 After getting the analysis out of the way, it comes down to your wealth manager carefully drafting and executing the right plan. The plan must be the exact way you want it, with your plan perfectly fitted to the attainment of your goals. Finally, make sure you understand every aspect of the strategy to avoid errors.

Executing The Plan

 The implementation of the plan is one your manager has to guide you on. The firm’s goals should be to strategize and strive to make your financial objectives a reality.

Monitoring The Plan

 It is required to monitor the progress as circumstances or desires change, so they can improve the plan. The firm should readily answer questions and assist with day-to-day financial decisions.

SEE ALSO: Financial Advisor vs Wealth Manager: Overview, Difference, and Similarities

What is the Wealth Management Business Structure?

The wealth management process isn’t confined only to an individual or family. Usually, it works as a part of a small or large-scale business para venture in the finance industry. Depending on the business, wealth managers may function under different titles, such as financial consultants or financial advisors.

 A client or business may employ the service of a wealth manager or a wealth management team. Although, it is not an operation confined to a situation or particular person

What Is The Difference Between a Wealth Manager Vs Financial Advisor

Financial advisors manage the finances of different clients who want to have a better standard of living, while the wealth management process means taking care of literal wealth.

Secondly, a wealth manager provides services to those with great wealth, such as capital gains, estate planning, and risk management. On the other hand, a financial advisor assists with lifestyle planning, for instance, cash flow planning and saving for college and retirement. The patronage is usually with the middle-class people who want to extend the life of their moderate wealth.

Thirdly, financial planning jobs are more accessible than wealth managers are scarce.

Lastly, as a financial planner or advisor, there is a reduction in payment, as wealth management jobs pay more.

What Are The Benefits Of The Wealth Management Process?

Here are a few benefits of the wealth management process:

1. Access To Multiple Services

The wealth management process introduces ways to help manage your finances. A wealth manager or financial advisor allows access to products and services.

2. It helps in times of setbacks

Nothing is certain in life, especially wealth. A wealth management process helps you through difficult financial circumstances and curbs the effect of hardships.

Additionally, a wealth manager is effective when circumstances such as retirement, marriage, or changing a career arise.

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3. Preparation For Retirement

A wealth manager will help you conjure a plan for your retirement. As such, you no longer need to fear the unknown, as he or she would proffer a solution.

4. Confidence

Wealth managers allow you to be confident and stress-free. With them, there is no need to regret the past decisions you have made.

The firm bears full financial responsibility and guides you on what to do in the future. This comes from a point of certainty bourne out of experience gotten from the practical knowledge of working and dormant future trends.

5. Advice from Experts

Hiring a wealth manager means knowing more about how you can manage your wealth as they are experts in handling finance. Therefore, contact that firm today and ask how you can save on investment fees and other customized investment solutions.

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Frequently Asked Questions

What Does A Financial Advisor Do?

A financial advisor renders the service of giving money-related advice to the customer whilst charging a fee. This advice is concerned with investment management, tax planning, and estate planning.

How Much Is A Wealth Manager Paid?

The average salary for a wealth manager is $86,074 per year in the United States. This depends on the wealth manager and firm. Advisors charge for their services in different ways, like annual, hourly, or flat fees, while we pay some work on a commission and through investments that they sell.

How can I protect my wealth?

The first thing to do is get familiar with the wealth management process. Get a wealth manager to help with protecting your wealth, such as retirement planning, estate planning, tax efficiency, transferring your wealth, and so on.

What should I expect from a wealth manager?

Wealth managers make a financial plan that protects the client’s wealth. The drawn-up plan is by the client’s wants. Then comes the regular update to change or improve the laid-out plan.


The wealth management process allows you to hold the reins on your financial lifestyle. It is a technique that helps to develop, manage, and protect your wealth. To get services, hire the services of a professional wealth manager.



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