Wealth Management: An Overview

What is wealth management?

Wealth management is a holistic, advisory service that helps affluent clients coordinate and grow their financial lives. Rather than offering isolated products, wealth managers create tailored plans that combine investment management with services such as estate planning, tax strategies, retirement planning, insurance, and sometimes banking or philanthropic advice.

What wealth managers do

Services commonly provided or coordinated:
* Investment and portfolio management (often discretionary)
* Estate planning, wills, and trusts
* Tax planning and coordination with tax professionals
* Retirement planning and cash-flow forecasting
* Insurance and risk management
* Business succession planning
* Philanthropic advising and charitable giving strategies
* Family-office services for ultra-high-net-worth clients (concierge, education, household management)

How wealth management works

• Initial consult: advisor gathers information about goals, timeline, risk tolerance, tax situation, and family needs.
• Strategic plan: a personalized plan is developed that integrates investments, tax and estate strategies, and other services.
• Implementation: investments and other recommendations are put into place, sometimes through a team of specialists (attorneys, CPAs).
• Ongoing monitoring: regular reviews, rebalancing, and adjustments as goals or circumstances change.

Example in practice

A client with $10 million in investable assets and a multigenerational trust might receive:
* Discretionary portfolio management for invested assets
* Trust and estate services to minimize taxes and ensure wealth transfer
* Coordination with attorneys and accountants for legal and tax compliance
* For ultra-high-net-worth families, a family office may also handle budgeting, education for heirs, and non-financial concierge services.

Business structures and advisor roles

Wealth management can be delivered through:
* Independent advisory firms or boutiques
* Large banks and private-banking divisions
* Family offices (single-family or multi-family)
* Robo-advisors and automated platforms (lower cost, more limited customization)

Advisor titles vary (wealth manager, financial advisor, financial consultant) and delivery models range from a single dedicated manager to team-based services.

Fees and pricing models

Common fee structures:
* Assets under management (AUM): a percentage of invested assets (frequently around 1% for smaller high-net-worth accounts, declining as asset size increases)
* Fee-only: hourly, flat, or retainer fees without commissions
* Commission-based: paid by product sales
* Fee-based: combination of fees and product commissions
* Automated platforms: typically charge well under 1% with low minimums

Industry context:
* Wealth management firms globally managed well over $100 trillion in recent years, with continued projected growth.
* Larger account balances commonly attract lower percentage fees; small accounts can carry higher effective rates.

Credentials and vetting

Look for recognized credentials and verify standing:
* Common professional designations: Certified Financial Planner (CFP), Chartered Financial Analyst (CFA), Personal Financial Specialist (PFS)
* Verify certifications and disciplinary records through certifying bodies and regulatory resources before engaging an advisor.
* Ask about continuing education, fiduciary duty (whether they must act in your best interest), and a firm’s conflicts-of-interest policies.

Common questions

Is a wealth manager the same as a financial planner?
* Not always. Wealth managers focus more on investments and high-net-worth strategies, while financial planners may emphasize day-to-day household finances, budgeting, and insurance alongside investments.

How are wealth managers compensated?
* Typically via AUM fees, hourly or flat fees, commissions, or combinations thereof. Fee structures should be transparent and disclosed in writing.

What do wealth managers earn?
* Compensation varies widely by firm, location, and client base. Reported averages for wealth manager salaries can be in the low six figures in certain markets, with additional compensation tied to assets managed and client relationships.

Final insights

Wealth management is about building an integrated, long-term plan tailored to complex financial needs. The best outcomes come from clear communication, transparent fees, verified credentials, and regular reviews that adapt the plan as life and markets change. Choose an advisor whose services, structure, and fee model match your goals and the level of coordination you need.