You see all of the advertisements for wealth management services, but what is the difference between a wealth manager and a financial advisor? What services do each offer, how do they differ, and what should you look for when choosing a wealth manager?
Wealth Management Services
A wealth manager is a strategic financial professional who offers a holistic approach to services that address both the short and long-term goals of affluent clients. Wealth management services include:
- Financial Planning
- Investment Management & Planning
- Tax Advice, Preparation & Planning
- Retirement Planning
- Legacy Planning
- Risk Management Planning
- Debt & Cash Flow Analysis
- Education Planning
- Business Planning
- Special Situation Planning
What's The Difference Between A Wealth Manager And Financial Advisor?
A wealth manager is a type of financial advisor whose clientele are generally high-net-worth individuals. Services offered are more highly strategized on a client-by-client basis for both short and long-term financial health. In fact, a wealth manager isn't required to be a CPA (certified public accountant) or PFS (professional financial specialist). However, it's recommended that they hold both qualifications.
On the other hand, a financial advisor works with a range of clients, not just high-net-worth individuals. Services offered by a financial advisor do not include investment management, however they do provide financial planning, tax advice, retirement savings, etc.
5 Reasons Why You Should Hire A Professional Wealth Manager
There are many benefits to hiring a wealth manager to manage your portfolio. However, you should do your due diligence. Choosing someone to manage your individual or family wealth is a very important decision.
1. A Holistic Approach to Financial Planning
A strategic wealth manager will manage the full scope of your financial plan. That can include:
- Investment Management & Planning
- Retirement Planning
- Legacy Planning
- Risk Planning
- Business Planning
- Special Situation Planning
- Cash Flow and Debt Management
- Education Planning
- Traditional CPA Services
2. Risk Management
Choosing to work with an experienced and qualified wealth manager comes with many perks. Most importantly, you will have a strategic partner with years of hands-on experience and expertise to provide you with strategies and advice to help mitigate risk while focusing on your financial goals.
3. Strategic Planning & Focus
Financial planning and investment management is hard to self-manage, especially with ever-changing markets and tax law. Having the right wealth advisor on your side will give you peace of mind because you'll have an expert managing your financial profile that is on top of current markets and tax law.
4. Investment Opportunities
There are many investment opportunities that individuals do not have access to, however your wealth manager will. Incorporating these types of opportunities are great for portfolio diversification and are used strategically for long-term growth.
5. It's All About The End Game
A true wealth manager is heavily vested in your long-term financial health. Strategic planning based on your long-term goals will cultivate a financial plan that's tailored to your specific needs.
Have questions about GFG's wealth management services? Get in touch with Brian Grigg, CPA / PFS today and schedule a consultation.