In other words, wealth management is an investment advisory discipline that incorporates financial planning, investment portfolio management and a number of aggregated financial services.
High Net Worth Individuals (HNWIs), small business owners and families who desire the assistance of a financial advisory specialist call upon wealth managers to coordinate retail banking, estate planning, legal resources, tax professionals and investment management.
Wealth management is often referred to as a high-level form of private banking for the affluent. Wealth management services are provided by banks, professional trust companies, and brokerages. Professional wealth management can help you plan your estate or invest your assets based on personal criteria and financial goals.
Money managers either directly make investments or help others by providing investment advice. If they are in the first business they are usually called portfolio managers. If they are in the second, they are generally called financial planners. One of the exciting things about investing is that you get rewarded for knowing how business works. People who understand and enjoy business are among the most likely to succeed in a career in portfolio management or a career in financial planning.
This work can be personally and financially rewarding and requires excellent interpersonal skills. A good financial planner understands investments, taxes, estate planning issues and knows how to listen.
An allied career to that in wealth management is a career in investment banking which is both challenging and pays very well. Investment bankers advise their clients on high level issues of financial organization. They manage the issuance of bonds, recommend and execute strategies for taking over and merging with other companies, and handle selling a company's stock to the public.
The job outlook for this profession is considered to be good and it is expected that career opportunities and salaries will grow substantially in the next decade. Job prospects for wealth management positions are expected to rise in line with the overall average for all occupations in the next ten years. Competition for these jobs, as with all lucrative financial positions, will be extremely fierce, and those seeking to enter the field will need solid academic credentials and impeccable and impressive work records.
Wealth managers can come from a variety of business disciplines and fields, but they all have a keen understanding of the markets, and an ability to give timely and useful advice to demanding clients. Nearly all wealth managers have a bachelor's degree in business administration, economics, finance, accounting, or similar fields. Many also hold graduate degrees or professional certifications. As competition for these jobs increases, applicants will find much greater success with advanced training in business or economics.
It pays to obtain the Certified Financial Planner (CFP) designation. An alternative designation popular outside the United States is the Chartered Wealth Manager.
