Should You Hire a Wealth Management Advisor or a Financial Planner?

Financial decisions are tough to make, especially if you’re not familiar with the finance industry. In this scenario, it’s likely that you’ll want to hire someone with more knowledge and expertise to handle your money. By hiring a wealth management advisor or a financial planner, you’re taking control over both your finances and life. Finding the right financial advisor may seem like a daunting task at first, but it isn’t. In fact, there are plenty of capable financial advisors that you can trust to help you with all your investment and financial decisions.

However, figuring out whether you should hire a financial planner, or a wealth management advisor might be trickier. That’s not to say that one is more qualified than the other, but to say that many wealth management advisors and financial planners offer vastly different financial services and products. To learn more about the differences between wealth management advising and financial planning, continue to read.

What Is the Difference Between a Wealth Manager and a Financial Planner?

Both wealth management and financial planning fall within the larger category of financial advising. However, the two areas cover different aspects of financial planning. Wealth managers offer more than investment advice. In fact, wealth managers usually offer all-encompassing financial services, such as estate planning, risk, and capital gains management.

Wealth managers usually work with a specific type of clientele, namely high-net-worth individuals. These individuals typically have specific financial needs that are better served by a wealth manager. Wealth managers generally have the capability to provide their clients with any financial product possible. Although some wealth managers choose to specialize in specific financial products or services. High-net-worth individuals benefit greatly from hiring a wealth management advisor.

By doing so, a wealth manager becomes a single point of contact that organizes and coordinates all money management services. A wealth manager will communicate with a client’s lawyers, accountants, as well as financial experts to properly manage a client’s portfolio and advise them accordingly. Financial planners, however, assist with the day-to-day management of money. They often help their clients with issues such as budgeting, cash flow, and savings for future expenses. Most financial planners’ clientele are middle-class individuals who are trying to satisfy their current and future financial needs.

How to Find the Right Wealth Management Advisor?

Depending on your financial goals and needs, you may have decided to hire a wealth manager. That’s a fantastic idea, but now’s the time to figure out exactly who should help you with your financial decisions. The right wealth manager can help you reach your financial goals, provide you with security, and ensure your legacy for the future.

Finding the right wealth manager is a matter of chemistry. Experts suggest one of the best ways to find a wealth manager is through word of mouth. Using referrals from other professionals such as accountants, attorneys, and other financial advisors can help set you up with the right wealth manager. Additionally, friends and family members might be able to offer suggestions.

After finding a few wealth managers to consider, think about all your financial goals and intentions. Personal goals will determine the amount of risk you’re willing to take with investments in addition to your basic income needs. Establishing goals will also help you establish an investment philosophy. An investment philosophy is a strategic approach to selecting investments and strategies for investors to follow.

When looking for the right wealth manager, be sure to find one whose investment philosophy closely aligns with your own. Remember wealth managers are essentially consultants who are finding the best ways to manage their client’s money. The right wealth manager will be knowledgeable about the financial industry and which products and services you need the most.

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