Purpose of Wealth: Importance of Wealth Management | Wren Investment Office (2024)

FAQs

Purpose of Wealth: Importance of Wealth Management | Wren Investment Office? ›

We think the purpose of wealth can often be distilled into three objectives – protect capital (stay rich), grow capital (get richer) and enjoy capital. Most clients tend to want a combination of these, but in differing proportions. How assets are managed will reflect the goal or goals of the client.

Wealth managers provide holistic financial advice to help their clients grow and protect their wealth. This advice goes beyond just providing advice on a client's investments or designing a financial plan for them. Wealth managers generally work with clients with a higher net worth than a financial planner might.

Wealth gives us more options than we would have if we did not have wealth. Wealth is the power to turn goals into reality. It has the depth of possibility, opens up the world and has the power to enrich our lives and the lives of others around us, if used responsibly.

The objective of wealth management is to maximize wealth, ensure the financial security, and preserve assets for future generations. This involves managing investments, taxes, estate planning, insurance, cash flow, and retirement planning.

Investment advice and planning are a major part of wealth management. Investments are a necessary tool to grow wealth. A wealth manager can help you develop a personalised investment strategy taking into account your needs, goals, and appetite for risk.

They advise private, high-net worth individuals and affluent families on how to invest their portfolios and plan their finances to meet their financial goals, and they typically offer a range of services, including portfolio management, estate and retirement planning, and tax services.

The role of wealth managers involves assessing clients' financial situations, developing personalised investment strategies, and providing ongoing guidance to optimise their wealth. For the same, they regularly review portfolios and adapt strategies to address evolving needs.

Wealth Management – Definition

Wealth management is a part of financial services that assists you in managing your money and provides you with advisory services. Wealth management includes comprehensive guidance on finance, taxation, estate and legal.

Wealth Preservation

Your wealth isn't just for you; it's also for future generations. Your plans should include, among other strategies, estate planning to ensure that your assets are passed down efficiently and according to your wishes. This aspect of wealth management allows your legacy to live on.

There are three key components to our process: Comprehensive Financial Planning, Asset Management, and Risk Management. Over time, we have learned that all three are necessary to create a strong, successful partnership in overseeing your overall wealth management.

What are the fundamentals of wealth management? ›

Managing wealth requires a comprehensive approach to a client's portfolio. A wealth manager looks at tax and estate planning, investments, and business development. In addition, legal requirements and philanthropy are also on the docket.

While traditional financial planning primarily focuses on goal setting, budgeting, and basic investment advice, private wealth management takes a more holistic approach. It includes in-depth analysis of investments, tax optimization, estate planning, and often involves actively managing investment portfolios.

Wealth management firms make money by charging fees for the various services they provide. In the area of investments, clients are often sold managed account services, discretionary investment accounts that are traded on behalf of the client by one of the investment professionals at the firm.

Wealth management is a branch of financial services dealing with the investment needs of affluent clients. These are specialised advisory services catering to the investment management needs of affluent clients.

As we have established, the main difference between a private wealth manager and a financial advisor comes down to the type of clientele they work with. If you have a high net worth, you're more likely to go with a wealth manager. Otherwise, you'll probably employ a financial advisor.

The top 5 are: 545 Group, Jones Zafari Group, The Polk Wealth Management Group, Hollenbaugh Rukeyser Safro Williams, The Erdmann Group.