The term “Wealth Management” is a broad term that encompasses multiple services. It is generally a suite of services that are geared towards the needs of high net worth clients. It is a consultative process whereby the advisor gleans information about the clients’ wants and tailors a custom strategy utilizing appropriate financial services. The most common application of wealth planning is a combination of comprehensive financial planning and investment or portfolio management. These two services often go hand-in-hand and the financial planning process informs and guides the investment process.

Wealth Management is different from other financial advisor services in a number of important ways. First, it is usually performed by an advisor who charges a fee instead of an advisor who takes a commission for selling a product. These “fee-only” advisors are often also held to the fiduciary standard, which requires them to act in the best interests of their clients at all times. Commission based advisors generally sell a product that addresses a specific need of the client, versus a fee-only advisor who provides comprehensive wealth management. Wealth Managers also often focus on financial planning. Planning generally includes retirement cash flow planning and planning for specific goals such as college expenses, weddings, new home purchases, etcetera.