“Wealth Management incorporates financial planning, investment portfolio management and a number of aggregated financial services” (Fields, 2019). Fields suggested “wealth management is more than just investment advice, it can encompass all parts of a person’s financial life.” Ganti (2020) inferred this “consultative process” is guided by a fiduciary who tailors the strategy for the client utilizing “the spectrum of financial disciplines.” These disciplines were previously highlighted in a discussion on Analyzing Personal Finances (Bryant, 2020). This holistic approach to personal finance integrates the client’s other agents (e.g., attorneys at law, tax accountants) to craft the optimal client strategy. As a professional fiduciary it is my experience that wealth management services are best applied to high net worth individuals with a range of personal finance interests including, but not limited to privately-held and exchange-traded securities, complex family dynamics, derivatives, various non-traditional risk management strategies such as third-party and self-insurance policies, uninsurable interests, complex valuation issues, significant cash flow management requirements, and more. These practice standards are adaptable and applied to less complex situations as well.
Bryant, J.C. (2020 August 7). Analyzing Personal Finances. Retrieved from https://tinyurl.com/y3ho8k62
Fields, J. (2019 March 20). Wealth Management: Top 100 Influencers. Onalytica. Retrieved from https://tinyurl.com/y5a2ql5b
Ganti, A. (2020 April 19). Wealth Management. Investopedia. Retrieved from https://tinyurl.com/yaujlefm
Let a finance professional help you plan and invest for the future. Research in behavioral finance indicates investors who follow professional advice generally make better decisions (Cussen, 2019). Cussen inferred finance professionals who earn their income by performing advisory functions (including research) operate best when selecting investments that are held in a securities portfolio based on strategic asset allocation tailored to the risk-averse U.S. investor rather than trying to beat the capital markets or hedging bets through sector rotation, market timing, or other active trading practices. Hogan (2020) suggested investors working with trustworthy finance professionals save more money for retirement than those who do not hire an adviser. Chang (2020) and Menichella (2020) suggested it is worth paying advisory fees to finance professionals who help you develop a strategy for investing that helps to minimize taxes, avoid emotional decisions, lower risk, and structure withdrawals. When selecting a finance professional, Chang (2020), Hogan (2020), Menichella (2020), and Cussen (2019) concur that it is best to choose a fiduciary who has a duty to act primarily for the benefit of our clients. Do you want help from a finance professional who is a fiduciary?
Chang, E. (2020 July 16). Should I Get a Financial Advisor? U.S. News & World Report, L.P. Retrieved from https://tinyurl.com/yxz5ooub
Cussen, M.P. (2019 June 25). How Financial Advice Can Boost Your Returns. Investopedia. Retrieved from https://tinyurl.com/y5uwzyo2
Hogan, C. (2020). How Does a Financial Advisor Get Paid? Should You Use One? Lampo Licensing, LLC. Retrieved from https://tinyurl.com/yyhon3ue
Menichella, B. (2020). Want A Better Investment Return In Volatile Markets? Consider Hiring A Financial Advisor. Forbes Media, LLC. Retrieved from https://tinyurl.com/y2jrp7kc