A brief guide to wealth management

Building and preserving wealth requires a great deal of careful planning and strategic execution. Wealth management is a helpful tool in this regard.

It provides a comprehensive approach to financial well-being, encompassing a variety of services to help you navigate the complexities of the financial markets.

In this concise guide, we introduce the core principles of wealth management and explain how it differs from financial planning, empowering you to make informed decisions about your financial future.

What is wealth management?

Wealth management is a broad financial service that encompasses financial planning but goes beyond it.

“The easiest way to think about financial planning is like a sat nav for your finances,” said Daniel Frampton, Chartered Financial Planner at Acumen.

“It helps you to get from point A, your current situation, to point B, your goals.

“Wealth management, on the other hand, is like having a whole team of experts to plan your entire trip.

“They take care of everything from navigating traffic jams, which for the purposes of this analogy are financial risks, to finding scenic routes, investment opportunities, and comfortable rest stops, representing tax planning opportunities.”

Why wealth management?

There are several compelling reasons to consider wealth management as part of your financial armoury:

Achieving financial security

A core benefit of wealth management is establishing a roadmap for financial security.

Wealth managers can help you to define your goals, be it a comfortable retirement, funding your child’s education, or building a legacy.

They craft personalised strategies to safeguard your financial future and achieve your aspirations.

Expert guidance

Managing finances, especially investments, can be complex and time-consuming.

Wealth managers possess the knowledge and experience needed to navigate the financial markets, recommend suitable investment options, and tailor a portfolio that is ultimately aligned with your risk tolerance and financial goals.

Holistic approach

Wealth management goes far beyond just investments. It also encompasses a comprehensive view of your complete financial picture, including tax planning, estate planning, and retirement planning.

This ensures that all aspects of your financial life work together seamlessly towards your long-term objectives.

Peace of mind

Financial worries can be a significant source of stress. A wealth manager can alleviate this burden by providing ongoing guidance and monitoring your financial progress.

Having this support in place allows you to focus on what matters most, knowing that your financial future is in capable hands.

Saving time

Financial research and analysis require significant time and effort. Wealth managers dedicate their expertise to keeping abreast of market trends and identifying opportunities, freeing you to pursue other priorities.

Wealth management vs financial planning

While financial planning and wealth management are similar, they cater to slightly different needs.

Financial planning focuses on creating a roadmap for your overall financial life, including budgeting, debt management, and saving for short- to mid-term goals.

It’s suitable for anyone looking to get their finances on track.

Wealth management, on the other hand, deals with the long-term growth and preservation of significant assets.

It offers a broader range of services, including investment management, tax planning, and estate planning.

As such, wealth management is typically more useful for high-net-worth individuals.

Combining financial planning and wealth management

Where appropriate, financial planning and wealth management often work best in tandem.

Financial planning acts as the foundation. It starts by assessing your current financial situation, including income, expenses, debts, and emergency savings.

Your financial planner will help you to set realistic goals, both for the short term and the long term.

Once you have a clear financial picture, wealth management can take over.

Wealth managers use your financial goals and risk tolerance to develop a personalised investment strategy.

They can recommend a diversified portfolio of assets like stocks, bonds, and property to achieve your long-term goals.

They will also consider the tax implications associated with any investment decisions.

A wealth manager’s advice can help you to minimise your tax burden through strategic asset allocation and other proven strategies.

For complex situations, wealth managers can provide advanced planning strategies like estate planning to ensure your assets are distributed in accordance with your wishes.

As you move along this journey, your financial planner can review your budget and adjust it as needed, while your wealth manager keeps track of your investments and makes adjustments based on the market and your evolving goals.

Wealth management advice from Acumen

Wealth management offers a valuable service for those seeking to build, preserve, and grow their wealth.

It provides a structured approach, expert guidance, and peace of mind, allowing you to chart a clear course towards your financial goals.

For high-net-worth individuals, wealth management can prove to be an invaluable service.

“To use another analogy, financial planning is like laying the foundation for your finances, while wealth management maintains and extends them,” said Daniel.

“At Acumen, we have the experience and expertise to help you build towards your future, with holistic and tailored financial planning and wealth management services.

“With 174 years of cumulative industry experience, our experts have helped countless satisfied clients to not only grow their wealth but fundamentally to enjoy it – which is an important aspect of asset accumulation.

With just shy of £400 million worth of client assets under our management, we’re adept at helping our clients to prosper.”

For more information about Acumen’s financial planning and wealth management solutions, please contact us today on 0151 520 4353 or email [email protected] to arrange a consultation.