This term originated in the US and has basically evolved from high net worth financial consulting for top clients of a company. It is considered an advanced type of financial planning which includes asset management, client advisory services, and the distribution of investment products. Services are provided to families as well as individuals who have accumulated a certain amount of wealth and are in need of financial advice.
Thanks to wealth management, you can easily decide what's really important to you and then develop sensible strategies to achieve your dreams and goals. You can also work up the confidence and means to challenge obstacles in your path.
Let’s consider the various aspects of wealth management:
Income and Lifestyle
First, you will have to understand and write down what your future hopes and goals are, from the present, to your retirement, to the post-retirement stage. The experts will then map out your journey, one year at a time, to financial stability and success. You will also get advice on how to guarantee your present earnings.
The more wealth you accumulate and have to show, the more risk you will be faced with. It’s important to understand the scope of your wealth and also the threats against it, such as inflation, creditors, taxes, lawsuits, identity thieves, disasters. Only then can you deal with the unexpected.
The plan for life is the most important plan for investing. Whether you work after your retirement or decide to travel, investments must be made in tune with your needs.
If you plan to run your own business, there are many things you need to know. You need to see the bigger picture before starting out. It’s worthwhile to treat your business as if it’s the biggest investment of your life
Wealth can change hands and you want to make sure that it takes the right path. Money and assets need to be passed on to the next generation and be sustained. This makes it worthwhile to educate children and to instill a sense of obligation in them. It may be necessary to protect the family bonds and relationships. Wealth management professionals can help you tackle these tasks efficiently and help to keep your assets within the family
Wealth management also encompasses portfolio management and portfolio rebalancing, trust and estate management, private banking and financing and family office structures and management.