Cal Financial Professionals

Wealth Management

Wealth Management

Wealth Management is classified as an advanced type of financial planning that provides High net worth individuals and families with private banking, estate planning, asset management, legal resources, and investment management, with the goal of sustaining and growing long-term wealth. The usefulness of and the need for wealth management is inherent in its name. Whereas financial planning can be helpful for individuals who have accumulated wealth or are just starting to accumulate wealth, you must already have accumulated a significant amount wealth for the wealth management process to be effective.

Background

Wealth Management is a term that originated in the 1990s in the US with the Broker Dealers, Banks, and Insurance Companies. Wealth Management has generally evolved from high net worth financial consulting for persons who are top clients of any firm, to a high level form of private banking that provides various types of investment, insurance and bank products and services. With the repeal of the Glass-Steagall Act in 1999, financial firms were finally able to provide all three of the above services from the same offices.

With the emergence of wealth management as a career opportunity as well as a professional service in high demand, educational programs such as the American Academy of Financial Management CWM Certified & Chartered Wealth Manager program are providing customized wealth management executive training to corporations and individuals alike. As wealth management serves a much more affluent community, many Chartered Financial Analysts, Certified Public Accountants, Certified Wealth Managers, government-licensed lawyers, and sometimes an insurance professional who is a Certified Financial Planners are involved in this type of high-net-worth consulting. Keep in mind that only Lawyers and CPAs have a government license to provide legal or tax advice on complex wealth management, estate planning, tax law, retirement or other legal issues such as business succession or divorce. As a note, an RIA (registered investment advisor) with the SEC or a person holding a RIA license can charge fees for investment advice.

Persons engaged in wealth management usually work for investment banks, brokerage firms, law firms, accounting firms, consumer banks, trust departments, or investment and portfolio management firms. Smaller firms such as Registered Investment Advisors may also provide a wide array of family office services.

Source: Wikipedia