There’s financial planning, and then there’s wealth management. Think of wealth management as a step up from garden-variety financial planning. One office provides a range of services for a client: personal financial planning and investment management, tax reduction and estate planning strategies. Business continuation planning, asset protection, legacy planning, financial education are also often contained as part of the package.
The difference is really big-picture. Financial planning usually means creating a strategy for accumulating wealth for retirement and personal goals. Investment management focuses on managing financial assets with a performance level in mind. Wealth management, in comparison, wealth management considers the total net worth of a family, a couple or an individual. It weighs financial decisions in light of an investment portfolio and additional components of the financial picture such as real estate, insurance, a business, charitable gifting and more. Combining outside assets and wishes helps a family manage their entire wealth and not just retirement or investment assets.