WEALTH  MANAGEMENT

Wealth has been defined as a collection of things  limited in  supply , transferable and useful in             satisfying human desires and needs.                                                                                                            

Wealth is the abundance of  valuable  financial assets or physical possessions which can be converted into a form that can be used for transaction.

Wealth measures the value of all the assets of worth owned by a person , community or country . Wealth is determined by taking the total market values of all physical and intangible assets owned .

While people or community having ample wealth and the person concerned is not able to manage it properly at his own , in this situation the need of Wealth Management arises and becomes Important .

Introduction of Wealth Management

Wealth Management is an investment advisory service that combines other financial services to address the needs of affluent clients. These are specialised advisory services catering to the investment management needs of various clients.  

It provides a holistic approach in which through a  single services one can manage their own as well as family’s present and future needs and goals.

Wealth Management is customised services as per individual’s needs. Therefore those  In high-net-worth category require extensive and a different set of services while others may opt for basic financial planning advice. People with a significant amount of wealth may have intricate investment portfolios, complex tax scenarios, multiple businesses, ownership titles, several life and family health plan insurance plans, and special financial needs. Wealth managers offer a several financial services and products to address these unique requirements       

A wealth manager is a high level professional who manages the finances of high level net worth of individuals, organisations, corporate etc .

Cycle Of Wealth Management

Wealth Management is combination of various financial solutions. When you are taking the wealth management services  you should think over what are the services you are getting within it .

Combination of Wealth Management Includes –

Financial planning -- Financial  planning is  step by step approach to estimating the required capital and determining how to acquire the same. This helps you to keep track of your income,  expenses , and investments so that you can manage your finances better. Financial planning involves looking at a clients entire financial status and advising them on how to achieve their short and long term financial  goals .     

Tax Planning – Tax planning is the process of analysing a financial plan or a situation from a tax perspective.  The objective of tax planning is to make sure there is tax efficiency.  With the help of tax planning  one can ensure that all elements of a financial plan can function together with maximum tax efficiency.  Tax planning is a significant component of a financial planning.  Reducing tax liability and increasing the ability to make contributions towards retirement plans are critical for success. 

Tax planning comprises various considerations.  Consideration such as size , the timing of income , timing of purchase of various investment plan and planning are concerned with other kinds of expenditures. Also the chosen investment and the various retirement plans should go hand in hand with the tax filing status as well as the deductions in order to create the best possible  outcome . 

Insurance Advisory -- An advisory services means working together to achieve the best outcome for your  wealth . It is the quality of the adviser to Structure, Clarity and Consistency are important factors that ultimately help achieve your objectives.

An insurance adviser will explain you at what stage you need insurance and how much insurance you should purchase, because sometimes excess insurance will increase your liabilities. Optimum insurance would be required according to the need of your wealth, your family members, position and earning members of your family . 

Retirement Solutions – A strong retirement planning  would be advisable to take care of your post retirement days and help you to lead a stress free life. Wealth management would help you to grow your money and provide a regular income for life. Such planning help you set aside some amount towards your retirement while you are still working.

Estate Planning – In wealth management combination this is very important part. Estate planning is the process where you lay out your instructions as to how your assets should be distributed. To whom those are to go to them and in what form. And of course, you want to do this in a very though full way

In simple definition estate planning terms refers to the passing of assets / investment down from one generation to another.

Risk Management – Risk management is the process of  identifying , assessing , and controlling threats to an organisation’s capital and earning.  These risks stem from a variety of sources including financial  uncertainties , legal liabilities , technology issues , strategic  management errors , accidents and natural disasters.

A successful risk management program help an organisation consider the full range of risks it faces. Risk management also examines the relationship between risks and the cascading impact they could have on an organisation strategic goals.                                                                                                    

Portfolio Management – Portfolio management involves building and overseeing a selection of investments that will meet the long term financial goals and risk tolerance of an investor. It minimises the risks involved in investing and also increases the chance of making  profits . As wealth manager you should understand the client’s financial needs and suggest the best and unique investment policy for them with minimum risks involved .

Importance of wealth management

Wealth has its very ancient history. In each and every era its name and form keep changing . Right from the time of Spade Money a traditional Chinese money  was an early form of coins and commodity money used during the Zhou Dynasty  of China ( 1045 to 256 BC )  to Modern days crypto - currency . Now it needs to understand why wealth management is required . The generation of wealth management is due to modern days  requirement.

The Key Drivers In Wealth Management –

Increased regulations and compliance

Multiple financial products

Demand for diversification of investments

Expertise knowledge to access market

Increasing number of affluent clients

Increasing income of business segments

Well to Conclude – Wealth Management is an industry whose time has come. Increasingly, young and affluent investors are warming up to the idea of seeking professional and holistic advice to sort out the many pieces of their financial puzzle. Your focus as an investor should be finding a trusted  Wealth Manager who understands your unique needs and puts your interest first. A good wealth manager by your side not only helps you make your money work harder but also reduces your money worries and help you get a peaceful life.

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Sources – Jitendrasxnblogs / site has strict sourcing guidelines and relies on peer-reviewed studies, academic research institutions, related books and journals. We always avoid using inauthentic references.

https://www.goldmansachs.com

https://www.refinitiv.com

https://northerntrust.com

https://en.wikipedia.org

Disclaimer –

This article / blog is for information purpose only, but by no means it is a complete and exhaustive explanation on the whole topic, nor it’s intended as a substitute for therapy.

 

 

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