What is a wealth management advisor, and what do they do?
Learn all about the qualifications, costs, and services of wealth management advisors and the various ways in which they differ from standard financial advisors. Or match with a financial advisor suited to your needs by answering a few questions below.
Summary
Wealth management advisors provide comprehensive financial advice to help you mature and maintain your wealth.
61% of investors who used wealth management advisors in 2023 strongly agreed that they had higher returns that were better-quality investment outcomes.
Wealth managers and financial advisors are similar in their work, and many use the titles interchangeably.
Unbiased can match you to a financial advisor who can provide tailored advice based on your net worth and your needs.
What is a wealth management advisor?
Wealth management advisors help high-net-worth individuals and investors strategize, manage, and grow their assets through portfolio maintenance and diversification.
Many have their own private businesses, but they also work in banks, brokerage firms, trust companies, investment consultant firms, insurance companies, and money management firms.
What does a wealth management advisor do?
Wealth management advisors offer financial counsel, resources, and strategies to people who own substantial investment portfolios or possess various assets that require external insights and expertise to manage effectively.
A wealth management advisor can offer advice relating to investments, estate management, taxes, retirement, insurance, and wealth expansion strategies.
Wealth management advisor vs. financial advisor: what’s the difference?
Financial advisors and wealth management advisors have similar qualifications and offer many services that overlap, such as retirement planning, tax planning, and general long-term and short-term financial planning.
When you drill down a bit further, financial advisors offer more standardized, broad-scope advice and lifestyle planning for clients from various income brackets and investment experience levels.
In contrast, wealth management advisors specialize in dealing with affluent individuals or more experienced, high-net-worth investors.
How much money do I need to be able to work with a wealth management advisor?
Individual firms or wealth management advisors generally set minimum investable assets and net worth figures.
However, wealth management advisors generally work with clients with a net worth above $2 to $5 million.
At this point, it becomes especially advantageous to receive the advice and support of a financial expert.
What qualifications does a wealth management advisor need?
Like all professional fiduciary services, wealth management advisors require specific certifications.
When consulting with a new wealth advisor, look for the following qualifications:
Certified Financial Planner (CFP)
Chartered Financial Consultant (ChFC)
Chartered Life Underwriter (CLU)
Retirement Income Certified Professional (RICP)
Financial advisors and, by default, wealth management advisors must adhere to regulations based on the service they provide.
This means they need the correct qualifications and, depending on the type and value of the assets under their management, must register with the Securities and Exchange Commission (SEC) or another state or federal regulator to operate lawfully.
What services do wealth management advisors provide?
The services offered by wealth management advisors are centered on wealth security, strategy, and long-term expansion, such as:
Investment management
Retirement planning
Tax planning
Estate planning
Insurance planning
Philanthropic planning
ESG Investing
What are some wealth management advisor strategies?
Wealth management advisors are equipped to help investors, estate owners, and other affluent individuals preserve and grow their wealth strategically.
Some of the strategies this subsect of financial advisors is known for include:
Asset allocation
Diversification
Risk assessment
Buying low
Increasing portfolio stability
How much does a wealth management advisor cost?
The cost of a wealth management advisor depends on the firm they work for, whether they are independent, and the fee structure they follow.
Standard flat-fee rates are much the same as financial advisors and range between $2,000 and $7,500, while percentage-based AUM rates typically sit at 0.5 and 2% of a client’s total assets annually. Hourly fees may be between $200 and $400, and commission may also be charged for specific investment services.
What questions should I ask a wealth management advisor?
Having a few questions ready before entering into a relationship with a wealth management advisor is a good way to gauge whether your needs and their services align.
You can ask questions such as:
How long have you been a wealth management advisor?
What kind of fee structure do you follow?
What are your values and principles as a wealth advisor?
What are my all-in costs?
What kind of clients do you specialize in?
What communication style do you prefer?
What can I expect from our working relationship?
How to find a wealth management advisor
There are several different ways to go about finding a wealth management advisor.
You can use a trusted advisor-to-client matching platform like Unbiased, ask colleagues or family members for referrals, or research options in your area yourself.
Get expert financial advice
A wealth management advisor is a subcategory of a financial advisor who specializes in providing services for affluent or high-net-worth individuals.
Wealth management advisors offer a range of services, including investment strategy, portfolio diversification, tax management, philanthropy planning, and asset evaluation.
Let Unbiased match you with the right financial advisor for your needs to ensure you can reach your financial goals and grow your wealth.
Senior Content Writer
Rachel is a Senior Content Writer at Unbiased. She has nearly a decade of experience writing and producing content across a range of different sectors.