Investment management and wealth management - it is easy to be confused by these terms, especially since they are often misrepresented. What do they really mean, what are the key differences, and which might be best for you?
What is wealth management?
Wealth management looks at an individual's finances as a whole and how they can be managed to achieve their long-term financial and personal goals. In addition to handling clients' investments, wealth management encompasses a wide set of services, such as legal planning, insurance, accounting, and financial, charitable giving, and tax advice.
There are higher minimum asset thresholds, and one can expect to pay higher fees for the more comprehensive service. Although a good manager could justify this through the savings their service provides.
Advantages of wealth management
As wealth managers offer many of the services of an investment manager, their clients gain the same benefits. However, the additional services on offer mean that wealth management can provide further advantages.
As wealth management looks at all aspects of clients' financial affairs, it aims to provide a custom-made strategy to realise their objectives. For example, by combining different services, a wealth manager can find the best path to paying off a mortgage or planning for retirement, whilst avoiding tax inefficiencies or undue risk.
This holistic approach attempts to understand and predict how different areas of an individual's finances interact and organise them appropriately.
What is investment management?
The primary role of the investment manager is to advise on, organise and grow clients' investments.
After discussing a client's financial goals and acceptable risk levels, an investment manager assembles a portfolio of investments appropriate to their requirements. They then will keep clients updated on the state of their portfolio, offering recommendations and implementing changes.
Advantages of investment management
Investment management services sometimes require a minimum investment and come with a fee - generally a small percentage of the assets under management. However, they can offer numerous benefits.
Our Wealth Management Group is a team of specialists that bring deep expertise and advanced professional qualifications to their roles. We draw upon these qualifications and experience to recommend appropriate strategies and to implement a plan that supports your unique goals and objectives. Recommendations are driven solely by your needs and objectives, not by commissions or quotas.
We strive to provide our clients with a unique experience. They are not a “number.” We build relationships and have a hands-on approach. We believe that “attitude determines altitude” at Guaranty. Communication should always be open, freewheeling and honest but respectful. We believe that big ideas don’t happen without hard work, a little creativity, and an open mind.