Navigating the world of finance and investments can be daunting for new investors or professionals seeking to grow and protect their wealth. With an overwhelming amount of information, countless investment options, and ever-changing market conditions, it’s essential to have a trusted advisor who can guide and assist in making sound decisions.

Enter the realm of wealth management and the role of a wealth manager. This blog post will dissect what a wealth manager is, their services, and how they can help you achieve your financial goals and aspirations.

Wealth managers assist clients in managing, growing, and preserving their wealth

Wealth managers assist clients in managing, growing, and preserving their wealth

The Role of a Wealth Manager

A wealth manager is a professional financial advisor specializing in assisting clients in managing, growing, and preserving their wealth. These highly skilled individuals work with high-net-worth clients and families to create and implement tailored financial strategies and investment portfolios tailored to meet each client’s unique financial objectives.

Wealth managers possess a deep understanding of various financial topics, including investment management, retirement planning, tax planning, estate planning, and risk management. In addition to their expertise, wealth managers are well-versed in navigating complex financial situations involving multiple parties or asset types, such as business interests, real estate, or inheritance scenarios.

Wealth Managers vs. Other Advisors

One significant aspect that differentiates wealth managers (i.e., private wealth managers) from other financial advisors is their clientele. Wealth managers usually work with high-net-worth clients, typically between $1 million and $5 million in investable assets or possibly more. By contrast, financial advisors are most often associated with the general public or small business owners who may not necessarily have a high net worth or a significant investment portfolio.

Another difference is the wealth manager’s comprehensive and holistic approach to financial planning. Rather than merely focusing on investments, wealth managers take a broader view of their client’s financial landscape, assessing needs and goals in various areas, such as retirement, education, tax minimization, philanthropy, and wealth transfer. This approach enables wealth managers to develop personalized financial plans that consider the client’s short-term and long-term objectives, ensuring that all aspects of their economic life work harmoniously to maximize overall financial success.

Wealth Manager Services

Depending on the client’s needs and preferences, wealth managers offer various services and financial advice. Some of the key services provided by a wealth manager include:

  • Investment Management: Creating and managing a diversified investment portfolio designed to align with the client’s risk tolerance and financial goals.
  • Retirement Planning: Developing a strategy to help clients achieve a comfortable and financially secure retirement.
  • Tax Planning: Identifying and implementing strategies to minimize tax liabilities in the present and future.
  • Estate Planning: Ensuring the effective and efficient transfer of wealth to the next generation while reducing potential tax liabilities and other inefficiencies.
  • Risk Management: Mitigating the risks associated with investments and ensuring clients have appropriate insurance coverage to protect their wealth and loved ones.
    Hiring a wealth manager can benefit individuals and families

    Hiring a wealth manager can benefit individuals and families.

Benefits of Working With a Wealth Manager

Hiring a wealth manager can benefit individuals and families looking to optimize their financial situation. Here are a few reasons to consider working with a wealth manager:

  • Access to Expertise: Wealth managers bring a depth of knowledge and experience across multiple financial disciplines, ensuring their clients receive well-rounded investment advice.
  • Comprehensive Solutions: By taking a holistic approach to financial planning, wealth managers provide customized solutions and wealth management strategies that encompass every aspect of their clients’ lives.
  • Time Savings: Busy professionals can delegate the complex task of managing their wealth to experts, allowing them to focus on their careers and personal lives.
  • Peace of Mind: Engaging a wealth manager can reassure you that your financial affairs are handled proactively and professionally, with your best interests in mind.

Wealth Manager Fees

There are several different ways wealth managers charge for their services, and understanding the distinctions between them is crucial for making informed decisions. The most common types of fees include:

  • Management Fees: These are ongoing fees charged as a percentage of assets under management (AUM) and typically range from 0.5% to 2% per year. The more assets you have, the lower the percentage fee may be.
  • Performance Fees: Besides management fees, some wealth managers charge a performance fee based on a percentage of profits generated. This incentivizes them to deliver solid returns but can also increase costs if the manager outperforms their benchmarks.
  • Commission-Based Fees: Wealth managers who are also brokers may charge commission fees for buying and selling investments on your behalf. While these fees are usually lower than management fees, they can lead to conflicts of interest, as the broker may be incentivized to make more transactions to generate more commissions.
  • Flat Fees: Some wealth managers charge a flat annual or monthly fee rather than a percentage-based one. This can be advantageous for clients with more extensive portfolios, as the cost of the services does not necessarily scale with the size of the investment.

Choosing a Wealth Manager

Selecting the right wealth management firm is a crucial decision, as this person will play an integral role in shaping your financial future. Some factors to consider when evaluating potential wealth managers include:

  • Credentials: Look for wealth managers with relevant certifications or designations, such as Certified Financial Planner (CFP) or Chartered Financial Analyst (CFA) designations.
  • Experience: Seek out professionals with a proven track record working with clients with similar financial goals or situations.
  • Customization: Discuss the level of personalization the wealth manager can provide and ensure that their approach aligns well with your preferences and needs.
  • Communication: Assess the wealth manager’s communication style and ensure you feel comfortable discussing your financial concerns.
  • Transparency: Understand the fee structure and any potential conflicts of interest that may arise – working with a fee-only wealth manager can help to mitigate these concerns.

With so many wealth management firms out there, choosing the right wealth management professional or financial advisor can be challenging. That’s why we put together additional resources like 3 Things to Think about When Choosing a Wealth Management Firm or What Is a Fiduciary Financial Advisor and Why Do You Need One? to help guide you along the way and answer questions you might have.

Navigate the complexities of wealth management.png

Navigate the complexities of wealth management.png


A wealth manager can help you navigate the complexities of wealth management by taking a holistic approach to your financial life. Whether you’re looking to grow your investment portfolio, strategize for retirement, or plan for your heirs’ future, a wealth manager can provide valuable guidance and help you make well-informed decisions.

By carefully selecting the right wealth manager for you, you can enjoy the benefits of expert advice, customized financial strategies, and the peace of mind that comes with knowing your financial future is in capable hands.

If you’re a member of Planning Made Simple with questions about choosing a wealth manager or would like additional information on wealth management services, work with your Planning Made Simple Coach. As financial professionals with years of experience, they can answer questions you may have and provide advice and guidance on your current financial plan and ways you may want to consider improving your investment strategy.

Not a member of Planning Made Simple? Don’t miss out on the conversations happening in our unique community of individual investors, financial planners, financial professionals, and more. As a member, you’ll be paired with a Planning Made Simple Coach and unlimited access to Planning Made Simple educational resources, courses, and more!