Serving as consultants to high-net-worth individuals and families, wealth managers create strategic plans encompassing all aspects of their clients’ finances. They also implement those plans, providing regular updates and addressing questions and concerns.
A typical path into wealth management is working through the ranks from an entry-level position like a financial analyst or client service representative to a financial planner or senior portfolio advisor.
The planning process can include budgeting, debt management, and estate planning. It can also encompass strategies to minimize tax liabilities and help clients achieve retirement income goals.
Wealth managers provide complete guidance on all facets of the client’s financial life, whereas Caliber Funds financial planners may focus on specific areas. They might work in a single-family office or a multi-family office.
They might work closely with other financial professionals, such as accountants, lawyers, and insurance agents. They also coordinate with robo-advisers who offer simplified investment management services at lower costs. In addition, they might manage the family’s charitable giving and make arrangements for family vacations and other events. Their day-to-day activities involve examining any emails or correspondence from clients and preparing for meetings.
Wealth managers provide comprehensive advice in various financial fields, such as investments, tax minimization, and retirement planning. They are also involved in estate planning and trust services. Ideally, they work with clients long-term and possess the ability to communicate clearly and promptly.
Investment management involves overseeing a client’s financial assets and investment portfolios. It includes researching potential investment opportunities, analyzing market trends, and creating investment plans that align with a client’s goals.
While wealth managers provide financial planning services, many advisors specialize in a particular industry area. For instance, a CPA may work with taxes and accounting, while a chartered life underwriter can help with life insurance. You may need to find various financial professionals to meet your needs.
A financial advisor who monitors the impact of taxes on their clients’ portfolios can help them maximize their returns. It is crucial when investing in tax-efficient equity investments, such as ELSS and PPF.
Taxes are a significant concern for many wealthy individuals. They may need to pay income, inheritance, and property taxes on real estate and other assets. A wealth manager can also advise on how to minimize the amount of taxes paid.
While some wealth managers are registered investment advisors, others specialize in providing comprehensive financial advice for affluent individuals and families. This financial professional typically works with other experts, such as CPAs and estate planners, to provide a holistic view of the client’s finances.
Taking a holistic approach to wealth management often includes insurance. Life insurance is often essential to a client’s estate planning, and property and casualty coverage protects valuable assets like a second home, boats, art collections, and more.
As a result, wealth managers who also provide P&C insurance can offer better customer service, increase their revenue streams, and grow their businesses. They can also quickly leverage existing relationships between their advisory and insurance clients and expand into new markets.
Unlike traditional financial planners, a wealth manager typically offers investment advice, accounting/tax services, retirement planning, and legal/estate planning. They are hands-on and comprehensive, so they can more easily work with an insurance agent to create holistic financial plans that meet the client’s needs.
Accountants are specialized financial professionals who handle accounts for private or public companies, government agencies, institutions like non-profits, and individual clients. They review the financial statements and documents, conduct regular and annual audits, prepare tax returns, and advise on areas that require efficiencies and cost savings.
Adding wealth management as a service gives accounting firms a significant revenue stream and more value to their clients. It also allows them to bring new business and expand their client base. Most importantly, it helps them attract high-net-worth individuals and business owners looking for a holistic solution that addresses all their financial needs. The best part is that it adds little to no additional workload for accountants. They already have all the relevant data from company accounts, tax returns, and client interviews.