A financial planner typically assists with lifestyle planning which may include budgeting, planning for college and retirement, for example. Wealth management can include financial planning but also covers a wide expanse of financial advisory disciplines including portfolio management, investment, risk analysis as well as looking at how a person, family or foundation can optimize their tax situation, legacy planning (inclusive of Trusts) and how to protect your wealth with respect to potential legal threats or events where you may have liability if you are at fault.
Wealth Management is a far more complex and comprehensive discipline
A wealth management advisory takes a comprehensive look at the financial needs, situation and goals of their clients and will provide a complete A-Z list of financial, risk mitigation and tax optimization services that manage and protect a client’s wealth. Financial planners provide one aspect of financial advisory with respect to helping clients' manage their daily finances, credit, plan for their children’s college and more general retirement advice. While critical and helpful, these services do not compare to the scope and complexity of services provided by wealth management firms.
Differences In Training
Wealth management requires considerable expertise, training and a high level of fiduciary obligation to one’s clients. There are very specific procedures that must be followed with respect to client interactions, safeguarding of information, privacy and so forth. In addition wealth management and investment requires significant training and discipline. Wealth management companies will typically employ CFA’s (Chartered Financial Analysts) and CFP’s (certified financial planners) and have significant experience managing assets inclusive of stocks, bonds and other investments....