What It Means To Be A True Wealth Manager

0
What It Means To Be A True Wealth Manager
geralt / Pixabay

Advisor Perspectives welcomes guest contributions. The views presented here do not necessarily represent those of Advisor Perspectives.

Get The Timeless Reading eBook in PDF

Get the entire 10-part series on Timeless Reading in PDF. Save it to your desktop, read it on your tablet, or email to your colleagues.

When asked about the definition of wealth, people are likely to give a response that involves stocks and bonds. As financial advisors, we know that wealth goes far beyond dollars and cents. In order to provide excellent service to our clients, we must acknowledge this and embrace “true wealth management” in our practice.

The most successful wealth managers focus on all the types of wealth, not just what their Bloomberg terminals display. This often includes an assessment of a wide range of non-financial aspects of wealth, such as family relationships, jealousy, fairness, personalities, openness and many other factors. These issues will have a great impact on your client and his/her family’s wealth and ultimate happiness than investments alone.

Peter Lynch: How Investors Can Find Their Edge

Peter LynchPeter Lynch was one of the best growth investors of all time. As the Magellan Fund manager at Fidelity Investments between 1977 and 1990, he averaged a 29.2% annual return. Q1 2021 hedge fund letters, conferences and more The fund manager's investment strategy was straightforward. He wanted to find growth companies and sit on them Read More


Wealth management professionals should do a great job with investments, while also assisting with the complex financial and non-financial issues that arise when life, family, money and business intersect over time. Remember that wealth management is not a one-time event, but it is an ongoing process that evolves over a lifetime, and sometimes, generations.

What is “true wealth management?”

E?ective wealth management is composed of three critical, related pieces:

  • Investment management: managing investments to grow wealth.
  • Non-investment financial management: managing non-investment ?nances to enhance, protect and transfer assets.
  • Relationship management: (1) managing client, client family and wealth manager relationships and (2) managing the professional network of tax, legal & accounting advisors that are required to execute a comprehensive wealth management plan.

In the world of wealth management, both non-investment financial management and relationship management are talked about a lot in theory but are rarely executed in practice. Industry research shows that only 7% of ?nancial advisors provide these critically important services. However, 100% of advisors should provide these services.

Read the full article here by Roger H. Ingwersen, Advisor Perspectives

Previous article High-Income Danger?
Next article The Pivotal Mistakes That Cripple Family Wealth
The Advisory Profession’s Best Web Sites by Bob Veres His firm has created more than 2,000 websites for financial advisors. Bart Wisniowski, founder and CEO of Advisor Websites, has the best seat in the house to watch the rapidly evolving state-of-the-art in website design and feature sets in this age of social media, video blogs and smartphones. In a recent interview, Wisniowski not only talked about the latest developments and trends that he’s seeing; he also identified some of the advisory profession’s most interesting and creative websites.

No posts to display