What Exactly is Wealth Management?

Wealth Management is an advisory service that involves financial services to cater to the needs of wealthy private clients. This service helps clients manage assets through a consultative platform. Private wealth managers develop close working relations with their clients to gather information about their financial needs. Through this, managers create a bespoke strategy and portfolio to help achieve their client’s financial objectives. A wealth management consultant acts as a financial advisor who makes use of various services. Moreover, advisors utilize available financial disciplines such as portfolio management, legal or estate planning, tax management, accounting, mortgage planning, retirement planning, and asset protection. Unfortunately, they cannot help with opening bank accounts and receiving a bank loan. Large corporate organizations, portfolio managers who work with affluent individuals, and independent financial advisors all usually provide wealth management services.

Thus, if you are looking for a way to plan how to save, seek help in prioritizing your goals, or are just looking for guidance in investing then working with a wealth advisor is for you! Moreover, it is important to note that there is also an option for a digital investment advisor does exist. These advisors are referred to as ‘robo-advisors’. If you are interested in an all-digital platform, then this is the right alternative for you.

Asset Management – Why Do You Need It?

An asset management company (AMC) is an organization that invests pooled funds from customers. Then they invest the capital in various forms such as bonds, stocks, and real estate. AMCs manage individual portfolios and hedge funds. They also design pools of index funds, exchange-traded funds, and mutual funds that are regulated in a single centralized portfolio — to create better results for smaller clients. Using a larger pool of capital allows individual investors to access more diversification and investing opportunities, that they would be able to access on their own.

Purchasing for large groups of clients lets AMCs exercise economies of scale. This allows AMCs to receive discounts on the purchases they make because they are buying in large numbers. This practice greatly helps smaller investors to get bigger gains than they would not have been able to access on their own.

If you find yourself looking to grow your capital, then asset management companies can really help you!

Best Wealth Management Firms 

The Wall Street Journal presented the ranking of the top forty wealth management firms. This line up shows the US high net worth private customer assets under management for accounts worth more than $5 million. The largest firms include Bank of America Global Wealth & Investment Management, Morgan Stanley Wealth Management, J.P. Morgan Private Bank, UBS Wealth Management, Wells Fargo, the Vanguard Group, Charles Schwab, and Goldman Sachs. Bank of America has dominated the wealth management industry after acquiring Merrill Lynch following the financial crisis. Although size is not the main way to measure a successful firm, entities that acquire large quantities of assets indicate that they have wealthy clientele. Wealth management companies cannot continually offer their clients identical services that private banks offer. Specialized and concierge-like services are usually more common at private banks.

Nonetheless, advisors can spend a substantial amount of time with their clients. This is very beneficial as it allows advisors to understand their clients and provide the proper results for them. While they cannot open bank accounts, they can offer guidance and perspective on which accounts to open and operate. The value wealth managers bring to individuals is immense. These consultations help their clients manage their assets, so they experience long-term benefits from their capital by providing wealth investment guidance.