Personal wealth management is a practice of investment advisory that involves individual financial planning, portfolio management, and other private financial services, including estate planning, tax advice, etc.. It can be provided by large brokerage houses, banks, independent financial planners or portfolio managers. Personal wealth management is usually concerned with both the clients and financial advisors.
For the clients, personal wealth management is the activity of solving or improving the financial situation as well as gaining financial goals under the guidance of a financial advisor or planner.
From the perspective of the financial advisors, personal wealth management means delivering financial products or services to customers or clients so as to help them achieve particular financial goals, be it short-, medium-, or long-term goals.
How does personal wealth management work?
The ultimate goal of personal wealth management is to sustain and grow wealth. The financial advisors will give suggestions, guidance, or services to their clients to help them achieve the wealth growth. As a return, those financial planners or advisors will charge the clients a certain percentage of the assets under the management. The fees charged by the planners or advisors can vary from institutions to institutions. Usually, the range of the services provided can be highly customized according to clients’ specific needs.
Nowadays, with the advance of technology, many large financial advising corporations are starting to offer online services with lower fees. While the online financial services are gaining popularity, there are still a certain number of clients who prefer the more personalized way to manage their assets and financial conditions despite more expenses.