Asset management includes advice and the execution of investment transactions on behalf of the customer. As a rule, asset managers also offer their clients other financial services, such as B. Management of the customer's securities portfolio, financial and tax planning. From the client's perspective, wealth management is a process of improving the client's financial situation while at the same time achieving the client's short and long-term financial goals. Private wealth management is typically developed to serve private individuals, who are typically high net worth individuals.

Essence of Wealth Management Services
High net worth individuals often lack the knowledge and time to successfully manage their finances, so they seek the advice of wealth managers who are trained in managing individuals' funds and have experience in solving various financial problems as well as improving overall financial status of the customer.

Typically, a wealth management advisor will meet with a private individual, have a comprehensive discussion of the client's financial goals, risk capacity and appetite, and any other restrictions and constraints the client may have in relation to the investment of their wealth. Later, the Wealth Manager puts together an investment strategy that will allow the client to achieve their goals while being the most suitable for the client, taking into account all the information discussed during the meeting. The asset management advisor then continues to manage the private individual's funds using various investment products.

While wealth managers typically cannot offer their clients the same concierge-like and specialized services that private bankers can offer, they spend significant time understanding the client's needs and designing the most appropriate investment strategy for the client. For example, wealth managers cannot open a bank account for the client, but they can help them determine which bank account is best suited to the client's needs.

Services provided by wealth managers include:

fund allocation to suitable investment ideas;
retirement planning;
coordination with accountants and attorneys;
trust planning;
insurance and risk requirements.
Wealth management is usually one division of banking institutions or non-banking financial institutions specialising in providing services to high net worth clients.

Benefits of wealth management services
While you may be extremely knowledgeable in your own area of expertise, you may not be an expert in investing and financial markets. This is completely acceptable and you do not have to spend your time and energy to acquire sufficient knowledge of financial markets to feel comfortable investing on your own. Very often there are simple tricks to know and mistakes to avoid, which are only known by professionals familiar with the financial markets.

Professional wealth managers will guide you through the confusing processes, as well as advise on the good and bad investment ideas and partners.

Another benefit of professional wealth managers is their multi-disciplinary set of skills that will be used in your favour. Wealth manager skills are not limited to being good at allocating assets; professional wealth managers will also be able to help you with tax optimization, legal requirements, retirement and savings goals as well as passing your wealth to the next generations.

The third benefit of acquiring wealth management services is to use the manager as a filter for your investments. If you are a high net worth individual, most likely you are receiving numerous requests and prayers to invest in different business ideas and projects. In these cases, you are able to redirect all such request to your wealth manager and not deal with them. If a genuinely good investment idea will show up, your wealth manager will spot it and present it to you.