What’s The difference Between Wealth Management And Investment Management?

To stay on top of your financial goals, you should get the help you need in the Salt Lake City area. Financial advisors provide services through asset management and financial management. Depending on your financial situation, you may need only one service or both. This guide will help you learn the difference between them and determine which service is right for you.

Asset Management

Asset management involves the management of an individual’s assets. Assets are defined as monetary value or property owned by an individual. They have to be available and high in value to be regarded as assets. Examples of assets include bonds, mutual funds, stocks, and other types of investments that accumulate your wealth and get you ready for the future.

This involves the process of meeting with an asset manager who determines which assets are best for your financial situation and future. They provide services such as asset allocation, which consists of dividing the most investable assets among different classes. This also determines the percentage of your portfolio comes from growth products and the remaining percentage comes from fixed-income products.

Asset managers earn a commission on the percentage of your assets. These rates will decrease if only the asset manager oversees for an investor.

Wealth Management

Wealth management in Salt Lake City is not as literal as asset management. It involves looking into an individual’s or family’s finances and finding the appropriate steps for increasing their wealth and protecting their family line. This can take on a wide variety steps and forms, depending on how lengthy and complex the process is.

Some of the most common services offered by a wealth manager are charitable giving, educational planning, estate planning, insurance, legacy planning, retirement planning, and tax planning.

Since asset management is focused on the assets, wealth planning takes a look at an individual’s overall financial situation. Then the wealth manager determines the right steps for protecting that wealth in the long run. They’re also paid a commission through management while others are paid an hourly fee or flat rate.

Which is the Right One For You?

Do you need wealth or asset management? Now that you know the difference, how can you find out which one is the right one for you? Your decision should depend on your financial goals and the type of services you need. If you need advice on investing, then hire an asset manager.

The right asset manager can provide the right investment options for your financial portfolio. They will leave all of the other financial work in your hands. If you need help with your finances, you should hire a wealth manager. As previously stated, wealth managers provide a wide variety of services from educational planning to retirement planning.

There may be some instances when someone needs both services. There are some financial advisors who offer both wealth and asset management. But you’ll have to pay a fee for each service. You may even have to pay a wrap fee on top of those additional fees.

The key to learning the difference between wealth and asset management depends on knowing the different services between the two. Asset management is about looking over one’s investments. Wealth management takes a look at an individual’s financial and stock portfolio. There are financial advisors who skilled in both, which makes it easier to find one for both jobs in Salt Lake City.