What is Wealth Management and How Do I Know if I Need It?

Updated on August 28, 2019

Wealth management is primarily a professional package for affluent individuals or entities. A person attains advice on their finances and possible investments, taxes requirements, legal planning, accounting, estate planning in the case where there’s property, and ultimately get retirement options. A wealth manager, the person who manages one’s wealth, does not work alone. There sought input from experts in the industry, including accountants, attorneys and insurance professionals, who are often those the client has hired.  Their purpose is to both maintain and increase their client’s wealth.

The notion of hiring a wealth manager may appear extravagant though, but their usefulness is understated. These managers also offer financial advice on every facet of an individual’s financial life. Their existence is for convenience as a person does not have to consolidate input from the various persons involved in their finances and then to task themselves with finding the best way forward. It often takes a professional to interpret the data and chart the best next steps. It essentially tasks a single person to undertake a person’s financial matters to ease their headache. An individual is therefore only tasked with making decisions on anything ranging from what investments to take and what happens to their assets after their passing.

What a manager brings forth is not cast in stone; they only act as guides, offering all available options for a person to make an informed decision. They are essentially consultants. It is worthy to note that wealth managers are not tied to one field, for example, the investment arena. If a person owns an estate, they might opt for one that is an expert in real estate as they would act as an authority in that field. Wealthy managers more often than not operate in a firm where different departments get tasked with different portfolios depending on their background and role in the current position. A family lawyer Toronto’s firm hires could work in the firm and offer advice on the division of assets while a person with an investment background can manage a trust. They all, however, are within the financial industry to know the climate.

A person or entity is not restricted to working with one manager. Depending on the diversification of the portfolio or the number of financial services one requires, they can work with a team of managers. Ultimately, wealth managers take a client’s financial standing, their vision, and risk level and formulate strategies to generate more wealth. There are frequent meetings, possible over a lifetime, where evaluations propose the next steps.

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