The Function of Wealth Management

1. The Function of Wealth Management Wealth management is an integrated process of managing a person or family’s financial situation. Wealth management encompasses much more than just providing investment advice. It includes the combination of multiple financial services into a coordinated program to enhance, preserve and maintaining wealth over time. The role of wealth managementis not just about managing the enhancement of someone’s asset base. Still, it also involves a care for prolonged financial security and the ability to achieve life objectives. Wealth management includes investment planning, tax efficiency, income and retirement planning, estate planning and risk management thus providing a comprehensive financial well-being approach. Tax Efficiency: A Part of Wealth Management Part of effective wealth management is providing clients with ways to minimize tax liability. Taxes are often the largest single expense incurred while accumulating wealth. The cost of taxes can be directly correlated to growth of wealth and wise execution of financial strategies helps reduce the overall burden.

2. Wealth management advisors will clarify the client’s current income situation, investment gains and projected income anticipated in the future, and will develop a tax- efficient investment strategy. Behavioral advice and a discipline around money While wealth management is incredibly comprehensive in scope, one of the unique qualities of a financial advisor’s role is related to the client’s behavior. Many people make decisions related to finances from an emotional position, not necessarily foundational financial planning principles. Wealth management advisors will provide their clients with economic rational that helps facilitate a discipline around saving, investing and spending. A Holistic Definition of Wealth Management Wealth management is a holistic part of financial planning and wealth management that serves a more comprehensive purpose than simply offering investment advice. Even beyond investment advice, wealth management includes risk mitigation, tax planning, retirement objectives, estate protection, family planning, behavioral coaching, and philanthropy. Education and Family Financial Planning Wealth management extends into education and family financial planning. Planning for children’s education, marriage, or other major life events means strategic allocation of resources. Wealth management professionals work with clients to understand all available funding strategies (such as education savings accounts or investment strategies) to fund these events, while still meeting other financial life goals.