What Is Wealth Management and What Does It Entail?

Wealth management is a comprehensive financial planning service designed to help high-net-worth individuals achieve their monetary goals. It goes beyond simple financial advice—it's a holistic approach to managing a person's financial life. It's the highest level of financial planning available, which often involves complex strategies and many moving pieces. The umbrella of wealth management may include investment advice, estate planning, tax strategies, retirement planning and more.

Aspiring wealth managers should hone their skills through post-graduate studies, focusing on investment advisory services, risk management and asset protection. This article will explore wealth and investment management, as well as the kinds of people who can benefit from wealth management services.

What Is Wealth Management?

Wealth managers work collaboratively with their clients to guide the entire breadth of their financial portfolio, including investments, trusts, businesses and funds.¹ This can range from the expected, like retirement and setting up a college fund, to the wildly complicated, like coping with international regulations after major economic shifts.

The following services are key to personal wealth management:²

• Investment management: Identifying good investment opportunities and guiding clients to an optimized portfolio
• Financial planning: Establishing long-term goals for the client and developing strategies to attain them
• Tax strategy: Advising on how to legally minimize tax burdens through smart investment choices, timing, and asset allocation
• Estate planning: Ensuring a smooth transfer of assets to heirs or charities, often using wills, trusts, or other legal tools

Financial advising and wealth management are distinct but related. Individual wealth management is a high-touch, high-ticket service that exists as a niche within the financial advising umbrella.

Financial advisors, unlike wealth managers, may offer their services only in a designated space, like investments or taxes. Additionally, financial advisors and financial planners are more likely to take on clients with less extensive portfolios.

Who Offers Wealth and Investment Management Services?

The best people to answer the question, “What is wealth management?” are those providing the service. Financial planning and wealth management are provided by large banks, small independent firms and even private advisors.

Private advisor wealth management is typically a bespoke service, with an individual who is solely dedicated to the client's financial success. Small independent firms also offer a high level of personalization and diligence. A large bank may not have as much of a personal touch, but it will likely have access to a huge range of connections and possibilities. Larger banks and financial institutions are also more likely to take on clients with mid-range incomes.

Clients often look for qualifications and certifications when selecting a professional to help with their wealth and investment management. Many reputable providers are Certified Financial Planners (CFPs) or Chartered Financial Analysts (CFAs). Less commonly, you may see a Certified Investment Management Analyst (CIMA) take on the job.³

Any form of wealth manager should have a master’s in finance from an accredited institution.

Benefits of Personal Wealth Management

Personalized financial strategies are wealth management’s biggest benefit.

A wealth management account is 100% bespoke, so no more one-size-fits-all solutions. Your individual wealth management team will work closely with you to find the best route to long-term growth and wealth preservation. Wealth managers offer personalized advice based on your income, goals, risk tolerance and family circumstances. A Vanguard study found that working with the right wealth manager can increase returns by 3.75%, more than doubling the average return of individual investors.⁴

In addition to hard numbers, wealth management and asset management may provide substantial time savings and stress reduction for clients with complex financial portfolios. Managing investments, taxes and estate planning on your own can be time-consuming and overwhelming. Much like management accounting for a business, advisor wealth management removes decision-making fatigue for the client's personal finances.

Having a dedicated wealth manager means ongoing support, regular check-ins and adjustments as life changes. You're not navigating complex financial decisions alone. Financial planning and wealth management diverge in this regard, with financial planners taking a more hands-off approach, acting as a signpost rather than a leader.

When a Wealth Manager Is Necessary

Typically, wealth managers are most useful to high-income earners, or those with a significant existing net worth. In many cases, a wealth management account will have a mandatory minimum, often in the range of $1,000,000.⁵

Retirees are also a common demographic, as wealth managers have expert knowledge in handling retirement funds, estate planning and division of assets. For individuals with a high level of financial complexity or ambitious fiscal goals, a wealth manager can be a godsend. From handling monetary formalities to dealing with government red tape, a strong wealth management team will lead the charge.

On the other hand, for those with simpler financial needs, there may be a better option. A financial advisor is often the right choice for middle-income earners and will be well-equipped to help most people adequately plan for emergencies and retirement. If the fees for personal financial support are a concern, there are now lots of free resources available online to assist with a more DIY approach.⁶

Entering the World of Wealth Management

Wealth management is a rapidly expanding industry, projected to control nearly $150 trillion in global assets by the end of 2025.⁷ Opportunities for emerging wealth managers are growing rapidly.

William & Mary’s Raymond A. Mason School of Business is home to an outstanding Online Master of Science in Finance program. W&M offers a flexible program, with the option to graduate with a traditional master’s degree and a specialized finance certificate in as little as 16 months. This focused, inventive and rigorous program will prepare you to succeed in the fast-paced, ever-changing world of finance.

William & Mary’s long tradition combined with the Mason School of Business’s forward-facing vision creates a comprehensive and thoroughly connected online degree program, producing world-class wealth managers. If you feel this cutting-edge online program will help you achieve your career goals, schedule a meeting with an admissions outreach advisor to jump-start your career in wealth management.