Wealth Management

What is Wealth Management?

The word WEALTH MANAGEMENT is defined as a professional service which offers to give investment, financial planning guidance in addition to any required help with regards to finance related issues. It is usually given to clients who have high net worth and also to business owners. These people generally ask professional financial specialists to give financial advice. The financial specialists deal with all the financial assets to their clients. A lot of individuals as well as companies seek for wealth management services, in order to increase their profits, which is obviously their ultimate goal. The wealth management services can either be provided by a separate firm that is exclusively set up for offering wealth management services or they can be offered by banks. The clients will get to choose what kind of service they want. They get to choose from investment planning to financial planning to tax planning or real estate management.

In short, literally anything related to the clients financial issues is covered. There will be qualifying criteria for the companies or individuals in order to avail these services. It may vary for different firms and also different countries.

Wealth management services are customizable according to the needs of the clients. Wealth management services are very advantageous for people or business who have a large number of financial assets and who need a professional help to manage them.

Wealth Management is relatively simple in its most basic concept but very difficult to execute successfully.

Info-graphics on Wealth management

How does wealth management work?

Usually in the case of banks, when an account holder puts in a huge amount of cash in their bank account, the account holder gets a call from the wealth manager of the bank explaining about different services and products that they offer by giving some presentations.

A wealth manager follows a 3 step process to manage the clients money in the best way possible:


The first step that a Financial professional takes is to understand the client’s personal background like short term financial goals, long term financial goals and the also the risks linked up with them. This deep understanding will help in developing a suitable strategy which can be tailored according to the client’s needs.


Based on the understanding from step 1, the financial professional will then explain the client about different products available to choose from and they will finally end up selecting the best investment product from a range of available products.

These may include products like structured products, investment funds, ISAs, Equities, Bonds, Foreign Exchange products etc.


Over a period of time the client’s personal circumstances and the market situations will change by making a better progress. Hence, it is important for the wealth manager and the client to review the portfolio on a regular basis to keep it in line with these changes and also the new financial goals.

The wealth managers will not have any direct access to the client’s money.

The big banks and reputed firms do not and cannot run away with the client’s money. But for smaller firms, it is probably better to personally take care of the things, with the help of an assistant by taking suitable advice.

One can contact multiple advisors for advice and see what is likely to be the best.



The points listed down below are the top 10 benefits of wealth management.

  1. Income:One can manage income more effectively through planning. Managing income helps in understanding how much money is needed for tax payments and other expenditures and also helps in knowing the savings.
  2. Cash Flow: Wealth management helps in increasing cash flows by carefully monitoring the spending and expenses. Tax planning, controlled spending and careful budgeting will help in making more profits.
  3. Capital:An increase in cash flow, can lead to an increase in capital. It allows in considering the investments to improve the overall financial status.
  4. Family Security:It provides family’s financial security which is another important bit in the process of financial planning. It is important to have a proper insurance coverage and policies which can provide peace of mind for having a security for their loved ones.
  5. Investment:A proper financial plan will consider all the personal burdens, objectives and risks associated with them. So having a financial plan will act as a guide in helping to choose the right types of investments to fulfill the needs and the goals.
  6. Standard of Living: A proper financial plan will consider all the personal burdens, objectives and risks associated with them. So having a financial plan will act as a guide in helping to choose the right types of investments to fulfill the needs and the goals.
  7. Financial Understanding:Better financial understanding can be achieved when measurable financial goals are set, the effects of decisions understood, and results reviewed. It will give a better approach in setting the budget and also helps in having a control over financial lifestyle.
  8. Assets:It becomes important to determine the real value of an asset. The knowledge of settling or cancelling the liabilities comes with the understanding of your finances. The overall process helps in the building of assets which don’t become a potential burden for the future.
  9. Savings: It always good to have some investments with high liquidity. These investments can be utilized in times of emergency or for educational purposes. It helps in handling incase of some unexpected situations.
  10. Ongoing Advice: Establishing a relationship with a financial advisor whom one can always trust is very crucial in order to achieving your goals. The financial advisor will meet with the clients to assess their current financial circumstances and develop a comprehensive plan customized for the client.

Infographics chart on Management of wealth

  1. Doing it alone – The family members should not think that they can handle the financial matters all by their selves. It is one of the wrong steps that are taken by a lot of people. Wealth Management requires some specialized knowledge and skills. It is a very tough and complex process that requires a lot of time and effort for assessment of the current assets and close performance monitoring of each asset to ensure that wealth management goals are met effectively. This requires some professional help that one must definitely hire a wealth manager for this.
  2. Not choosing the Right Partner – Often a lot of individuals seeks expertise of various financial services providers to manage the family’s investments. Many times, the products offered by the financial service provider are limited to a specific area only. This is profitable and does not provide a wealth management solution. It is important to engage with a well-known professional wealth manager who can provide a better advice on the entire investment of the business or family. It makes the wealth management approach more integrated, disciplined and helps in achieving the overall objectives on time.
  3. Lack of Clarity : Businesses often lack to have clarity on wealth management objectives. Many of their investment decisions are reactions to the opportunities that suddenly come up. Asset allocations are not done in a proper manner due to these reactions. The businesses need to formulate their collective goals and individual goals and then go with a perfect strategy related to wealth management.
  4. Ignoring Protection – Wealth management is considered to be about growing capital and making profits. Amidst all of this, protection of life and assets is not given much attention. It is important that all family members and crucial assets of the family and business are protected under an insurance cover.
  5. Communication Hassles – It is important that family members are clear about where the funds are being allocated and how they are monitored. There should not be any miscommunications between the wealth managers and family. Professional wealth managers must be instructed to maintain confidentiality with respect to the family’s investments.
  6. Static Objectives – As a business grow, its goals and objectives also change. It should be seen that all these changes are incorporated in the wealth management process. If these changes are not brought to the notice of the wealth manager, then the business won’t be able to get better results and profits which will damage the whole reason behind hiring a wealth manager. It is important that wealth management objectives are revisited from time to time and are integrated with the changes in the business’s objectives.




Wealth manager performance of duties

All the points listed below are the roles and duties of a wealth manager:

  • Interviewing the clients regarding their financial objectives along with any potential risks involved, tax status, insurance coverage, expenses and income. In addition, they ask questions regarding any other information which may be relevant for the process of wealth management.
  • Answering any questions or doubts that the clients may have regarding the details of financial planning and discussion of strategies which may be suitable for implementation.
  • Recommending suitable strategies to the clients regarding investment planning, insurance coverage, cash management or any other relevant areas required to achieve the client’s financial goals.
  • Analysing the financial information which is shared by the client and determination of strategies which are best suited for meeting the financial objectives of the client.
  • Implementation of the financial recommendations or providing relevant references of individuals or firms who can assist with the implementation of the plan, to the client.
  • Reviewing of the client’s accounts and keeping regular check of what changes need to be make, in addition to taking necessary steps as per the review and suggestions.
  • Management of the client’s portfolio and regularly updating the client about the same.
  • Contacting the client on a regular basis for determining any changes which may have occurred in their financial status.
  • Preparation of the client’s information such as income projections, financial document summaries and investment performance reports.
  • Explaining the client regarding the duties of personal financial advisors and the services which are offered by them.
  • Guiding the clients in regards with the gathering of the required documentation, such as wills, pension plans, life and disability insurance records, income tax returns and bank account records.
  • Monitoring the trends in the financial market to ensure the effectiveness of the plans chosen for the client.
  • Recommendation of suitable financial products which may include but are not limited to insurance, mutual funds, bonds and stocks.


Systematic wealth management

  1. Difference in services:The difference between an investment advisor and a wealth manager is that an investment advisor sells specific investment oriented products whereas a wealth manager will give financial advises by assessing a lot of financial aspects of the client. The investment advisors will offer a variety of products but a wealth manager, by the assessing all of the issues of the client will suggest a financial product only if it helps in increasing the financial status of the client. He will just suggest product. It is completely the choice of the client whether to choose the product or not.
  2. Product promotion v/s a range of options: The investment advisor will only talk about the benefits of the products and promoting the products is the main motto for him. But in case of a wealth manager, he only suggests products which are really useful for the clients and will just suggest but not promote the product.
  3. . Scope: The products that an investment advisor promotes have a very limited scope and there are very finite options. Even though the wealth manager also suggests the same kind of options, he will suggest the products or offers that are not necessarily investment oriented but there will be better profits because of that.
  4. Customization: Wealth managers, kind of, build that trust and relationship with the clients. So they can be able to deliver more products and services to them. They have a richer understanding of each client’s personal and financial life that will give them more options to choose from. Wealth managers can also customize some products and offers in order to give the clients some better life insurance policies.

This content will be helpful in:

Understand Financial Analysis Meaning

  • Understanding What is Wealth Management
  • Understand Wealth Management in Saudi Arabia
  • Choose the best Wealth Management Products
  • Understand the work of Wealth Management Companies in USA
  • Understand the work of Wealth Management in UAE
  • Understand the functioning of Wealth Management Companies in Hong Kong
  • Know the work of Wealth Managers
  • Opting optimum Wealth Management Course


Wealth management is not an easy a task. Wealth managers have to be very skilled and alert as entire consequences depend upon their decisions and actions. Some basic idea at least helps in selecting appropriate wealth managers.


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