Wealth management is a specialized service that merges financial and investment advice, accounting and tax services, retirement planning and legal or estate planning for one set fee. Some wealth managers also provide bank services or advice on philanthropic activities.
Breaking down wealth management
Wealth management is just not constrained to investment advice. There is much more as it embodies all parts of a person’s financial life.
The idea is that rather than trying to integrate pieces of advice and various products from a succession of professionals, high net worth individuals benefit from a holistic methodology in which a single manager coordinates all the services needed to manage their money and plan for their own or their family’s current and future essentials.
3 Things That Will Never Change in Wealth Management
Although there do are much big ideas in the wealth management industry that might not change, but here down below I am mentioning three affairs that, in my opinion, have biggest probabilities of staying constant.
- Financial advice is the solitary business where you give customers what they need
Other businesses cannot afford to follow this structure. For e.g. packaged food companies, and quick service restaurants would go broke selling in such style. Bars and nightclubs would go close. Global economy would grind to a halt. Having said that, you do not need to worry. There is no danger of this happening in free market capitalism.
In the advisory business, giving the clients what they need actually turns out to be a better model.
- People do business with people they like
This, probably, will never change.
The case is very clear, yet strong. The minute the customer stops believing is the moment you will lose them. This theory is regardless of how good you think you are with their money, how much technology and technical terms you throw at their faces, no matter what you do, your clients would proceed with you only when they like you in person.
No advisor has so much of advantage over another advisor that lack of trust or personality can be overcome.
- The two constants that surpass everything: Fear & Greed
The social animal will never get away with two constant- Fear & Greed. This is altogether irrespective of the type of funds they are investing in- closed-end, mutual, exchange trade, hedge, private equity or what not!
The urge to dodge professed downside and to be a part of bull market is invincible, throughout all time and space. Certain arrogance is obligatory to believe that this global and permanent condition can somehow be eradicated by software or research or seminars or books or blog posts.
There will never be a Wall street product conceived or a software program written that can countermand fear and greed, although a support from a caring professional may help a great deal.