Wealth Management is a specialized advisory service that provides investment advice to affluent individuals and families. It encompasses a range of services from investment management to trust and estate planning and tax avoidance.
The goal of wealth management is to provide a blueprint that caters to the needs of each client. These are not off-the-shelf recommendations, but a strategy tailored to the clients’ goals and risk tolerance.
A great wealth manager will not just execute a plan, but also keep you informed about emerging trends and rotations in the market, as well as laws and regulations that affect your financial life. They will regularly adjust your strategy as needed to help you see the bigger picture and stay on track with your financial goals.
Insurance Planning: A wealth manager will also recommend appropriate insurance plans to ensure you and your family have the coverage you need in case of a financial loss or hardship. This can include disability planning, term life insurance, permanent life insurance and long-term care insurance.
Asset Allocation: A good wealth manager will use a variety of asset classes to reduce overall risk and help you achieve your financial goals. This can involve stocks, bonds, cash, or a combination of these assets.
Despite the recent financial crisis, the wealth management industry has remained resilient and has seen strong growth in its nascent postpandemic new normal. It has also embraced unprecedented levels of innovation, with national banks building wealth management capabilities and full-service wealth managers upgrading their digital banking capabilities.