Wealth management or asset management is a specialization in financial services. Financial planners and advisors who are experts on investments, different types of taxation, estate planning and asset management generally specialize in investment management. Wealth management also includes retirement planning and inheritance advices including planning and management of succession.
There are primarily three objectives of any wealth management strategy – to preserve the wealth accrued, to invest the wealth tactically for growth and to further secure the financial future of an individual, family, estate, trust or company.
Wealth being unused is a wasted opportunity and wealth being used without proper planning and strategizing, being ill-informed and to indulge in obvious losses are undesirable. Wealth management is not just geared towards growing the value of assets and making endless investments but also making sound moves to save on taxes, capital gains tax and to make one’s life more convenient, prosperous and free of stress. Wealth management or asset management is also largely a personalized plan. Two individuals with the same types of assets or net worth may not have the same asset management or wealth management strategy.
Wealth management typically encompasses taxation, investments, estate planning, inheritance, retirement and succession, lifetime planning, family wealth management and planning, accounting, administration and portfolio management.
There are various benefits of wealth management. In regards to family asset management and succession, wealth management services typically coordinate and manage your family wealth such as your trusts, companies, SMSF’s, understand and help you articulate your family values, work with you to create family governance system, prepare and manage the transition of your wealth to your beneficiaries, preparing and manage your transition to retirement, beyond your business or vocation and helping your beneficiaries prepare for receiving and managing their inheritances. Wealth management also includes risk management and social contributions.
Asset management or wealth management is necessary for inheritances planning and retirement planning. It attends to all facets of the transition of family wealth from one generation to another. In regards to retirement planning, wealth management includes assessment of where you are now, what is important to you and what you need and wish to achieve to provide a clear path to achieve your goals, preparing for future or current inheritances, understand and take measures to facilitate the lifestyle you wish to have or presently have and provide the solution to work towards retirement.