What exactly is wealth management?
Wealth management is a term often used to describe the level of advice offered to a high net worth client. When someone has a high level of assets, it often goes hand-in-hand with more moving parts to their financial life.
By “more moving parts” we mean some or all of the following:
- Net worth above the federal estate tax exclusion amount, which may mean a more advanced estate preservation strategy
- Privately owned business or ownership stakes in one or more privately owned businesses
- Upper level management at a company with a robust, albeit sometimes complicated, compensation and benefits package
- Investment real estate such as rental properties, commercial building(s), raw land, vacation properties, out-of-state properties, ownership in real estate limited partnerships or LLCs, or various other real estate investments
- Trust arrangements either as a beneficiary, trustee or grantor (other than simple revocable living trusts)
- Concentration of highly appreciated stock with significant embedded capital gains
- High income earners such as professional athletes, business owners and C-level executives
- Advanced charitable gifting strategies
- Business succession planning needs
- And more…
There’s financial planning, and then there’s wealth management. Think of wealth management as a step up from entry level financial planning. It often includes a wider range of services for a client: personal financial planning and investment management, risk management, tax reduction and estate planning strategies.
Financial planning usually means creating a strategy for accumulating wealth for retirement and personal goals. Wealth management, in comparison, considers the total net worth of a family, a couple or an individual, and often includes additional components of the financial picture such as real estate, insurance, a business, charitable gifting and more.
Yet it is also about paying attention to detail. Every successful professional or business owner reaches a point of delegation – there comes a point at which you can’t do it all yourself. Indeed, it can be hazardous to try and keep track of every detail without help. The same goes for your finances.
Wealth management unites advisors from different disciplines as a team.
- Insurance brokers
- Your CFO if you run a privately owned business
- Real estate professional
- And others…
Led by your advisor here at Private Client Advisory, the team looks at your goals, needs and priorities to determine an individualized strategy for guiding you toward your desired outcomes. Your advisor can become somewhat like your financial CEO, and you are elevated to being somewhat like you own person Chairperson of the Board.
When is it time for wealth management? If you have too many financial concerns, issues or priorities to address by yourself, then it is certainly time for this kind of financial care.
If you would like to talk to one of our advisors about how to simplify the management of your financial life, call us at (770) 297-9000 or head over to the Contact Us page where you can send a message or ask any questions.
The SFA does not give tax or legal advice.