Investment management and Wealth management can easily confuse anyone of us as they are often misrepresented. Let’s have a look at the difference between the two.
What is wealth management?
Wealth management usually focuses on individual’s finances as a whole and as in how can they be managed so as to attain long-term financial and personal goals. When client investment is an area of concern, wealth management includes a wide range of services, like legal planning, insurance, accounting and financial, charitable giving as well as tax advice.
It also possess certain higher minimum thresholds, and can eventually be liable to pay higher fees for a more comprehensive service.
Advantages of wealth management :
Wealth managers may offer services similar to that of an investment manager, so that their clients gain same benefits. But the additional services on offer indicate that wealth management is likely to provide further advantages.
This type of management basically aims at providing a custom-made strategy so as to have better understanding of their objectives. For instance; bringing together different services, a wealth manager can discover the best path towards paying off a mortgage or planning for retirement, at the same time avoiding tax inadequacies or undue risk.
A wealth manager is proficient enough to deliver a single focal point for all financial matters. Despite of having a huge assortment of advisors, a wealth manager may swap the want for a separate financial planner or investment manager.