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How Can a Wealth Management Company Help You?

There’s no greater blessing than financial security for you and your loved ones. Many Americans are discovering ways to leverage their current income levels to afford them more wealth well into the future. This wealth can last, even after their careers are over.

That’s why finding a pro who knows how important managing money is one of the most important decisions you can make. You can learn more here on just what financial management means.

Learn how to find these professional advisors. They’ll help you map out your long-term financial strategies.

Just follow these steps. Then you’ll be able to preserve those hard-earned dollars that you’ve worked for throughout your entire career to earn.

What Does Wealth Management Mean?

Wealth management means how a high earner can manage their personal finances and assets over time. Wealth management also means using a wide range of services and products to protect and grow assets in the future.

Individuals who have liquid assets totaling at least $1 million are considered high net worth individuals (HNWI.) In today’s economy, there are over 20 million people in the US who are worth over $1 million. Investors who can earn more than $30 million in assets are Ultra-high net worth investors.

Financial Planning vs Financial Management

It’s not hard to confuse the terms “financial planning” and “financial” management.” Financial planning covers all of those short-term planning tasks like refinancing a home.

A financial management strategy is a holistic method to managing finances well into the future. It’s a long-term approach to considering all of your investment sources.

A financial management strategy can include any business or real estate investment. It also includes estate and tax planning as well as risk management. Here is a further look at how a financial management strategy can impact your long-term financial future:

Risk Management

Risk management includes identifying any of the uncertainty that might surround investment decisions. Risk management means analyzing and evaluating an investment’s ability to lose its value.

When you have this analysis complete, you can determine if your wealth management advisor can sell the investment or buy more of it. Your advisor might advise you to do nothing. Eventually, it’s your risk management tolerance levels that drive these kinds of decisions.

Investments Management

Investments management includes managing various securities and assets like real estate or bonds. Investors analyze and consider stock purchases. They can also consider investment contracts with other private or institutional investors.

Real Estate

Investing in real estate means purchasing and managing rental properties. Investors will buy land or a building and rent the space to tenants. This investment strategy is profitable because buyers can assume possession of the property. They just pay a portion of the total costs upfront.

Estate and Tax Planning

Estate planning means planning on how you’ll want to distribute your assets once you have passed away. Estate plans address how you’ll deliver your assets to any of your beneficiaries as well as prepare your estate taxes afterward. Wealth management professionals work to accomplish these tasks after their clients die.

Tax planning refers to leveraging tax exemptions and other legal deductions that can reduce your tax liabilities. There are certain legal methods you can use to lower these tax liabilities. These methods are considered neither tax avoidance nor tax evasion.

What are Wealth Management Companies?

Wealth management companies hire advisors to review their client’s monetary goals. For example, the professionals at the Moneta Group ( They can build a portfolio that reaches their individual client’s future financial goals and obligations.

These professionals can also create portfolios based on their client’s current-day financial picture. This picture includes the client’s risk comfort as well as other short-term goals.

A wealth management consultant receives a certification that’s called a registered investment advisor (RIA). Registered investment advisors have certain fiduciary responsibilities. They must always place their client’s interests first and ahead of their own.

Wealth management consultants work with others in small-scale offices. Sometimes they have their own independent or solo practice. U.S. banks like JP Morgan or Goldman Sachs also offer private wealth management business units.

Most wealth management advisors charge fees based on your asset’s value that they manage for you. Fee-based professionals don’t receive any payments for any product sales.

A wealth management advisor’s salary can range between $75.000 and $115,000. These professionals can also earn bonuses for their services as well.

A commission payment allows an advisor to collect on every financial product their clients buy. These products range from annuities to securities.

Requirements for a Wealth Management Advisor

A wealth management advisor must earn a bachelor’s degree to begin a career in this field. These professionals can also earn a master’s degree in another related discipline.

If wealth management advisors want to guide clients on how to buy, sell or invest in stocks and bonds, they must have a license to do so. Wealth management advisors with a smaller company will register with their state’s regulators. Those advisors with a larger firm can register with the US Securities and Exchange Commission.

Wealth management advisors should also have a Certified Private Wealth Advisor (CPWA) license. This certification indicates that the advisor has expertise on wealth life cycles.

An advisor with a CPWA can also accumulate and preserve your earnings. Your advisor will also help their clients develop a plan to distribute their earnings. They can also create a strategy for you to transfer your wealth that reduces your tax liability.

Next Steps for Managing Money

Are you an HNWI earner who’s looking for help managing money? Start by researching the Securities and Exchange Commission’s investment advisor site. That’s where you’ll find promising companies to interview and help plan your financial future.

Always make sure that the advisors at your chosen company have their RIA certification. Confirm whether they have a conflict of interest with your portfolio.

Any conflicts present will interfere with your trust. They’ll also sour your working relationships with these advisors.

For other financial tips or informative articles on a wide range of topics, be sure to explore more on our website!