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Understanding Wealth Management and Financial Planning

by gbaf mag

What exactly is wealth management? And what exactly does a wealth manager actually do? Wealth management is designed specifically for high-net-worth customers to help them maintain their assets, protect their capital and reduce their personal financial risks. It is an excellent form of personal financial advice, which goes much deeper than simply selecting, choosing and investing in assets. There are several types of management and the one you choose should be in line with your needs and goals.

Many firms offer wealth management services. A popular type is the asset management firm. This is a direct-hire firm that provides advisory and counseling services on wealth management issues. Assets are those items which are owned outright or are in bank accounts such as bonds, shares and mutual funds. This kind of firm usually requires a minimum investment, although there are some exceptions.

An alternative type of wealth management is finance and insurance services. These firms tend to deal with older, more established wealthy individuals. Their areas of specialty include retirement and investment planning, wealth protection, estate planning, estate taxes and other financial services such as insurance and bonding. A number of these companies specialize in real estate and the financing of properties. They may work with individuals to obtain or sell commercial real estate and residential properties.

Another common type of wealth management firm is the private lending office. These firms work exclusively with individual wealthy individuals. Most often these lenders are family members, or trusted friends. There are differences between the two kinds of firms; private lending offices are primarily financial services companies while private wealth managers generally deal more with personally owned businesses.

The larger and more reputable private wealth management firms tend to hire attorneys, corporate law firms, corporate financial experts and a variety of bankers, brokers, stockbrokers, security agents, and estate planners to handle their clients’ affairs. These firms tend to have offices across the country and hire hundreds if not thousands of people to help manage their clients’ wealth. There are also private wealth management firms that are not-for-profit, and these tend to have offices in all regions of the country as well as in major cities. Many of these firms also contract with other firms to do the same kinds of work for their clients.

The majority of these firms will only take on clients who can afford the fees. Those who cannot afford this cost, are out of luck. This is why it is important to fully understand the kind of work that these firms do before you sign up with one. For instance, you need to understand exactly how much money they will charge you to help you manage your wealth and how often you will be charged. As well, you need to know what type of services you will be getting such as asset protection, estate planning, tax strategies, and so on. You want to ensure that you are getting the most for your money.

Once you have found the right firm for your needs you will need to find out what type of plan you want to establish to accomplish your wealth management goals. Usually, a financial planner will lead the way. He or she will talk with you about your goals and your assets and liabilities. They will then develop a personalized portfolio for you. The portfolio management team will use this information to help achieve your financial goals over time.

A wealth manager can offer a wealth management advisor, financial planner, and estate planning consultant as well. These services are usually offered on an hourly basis for a slightly higher price. Many times, the services provided by these professionals are complimentary to clients. It is a good idea to see what each can offer you before you make any final decisions regarding your wealth management and financial planning needs.

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