Money management is a critical for robust fiscal health – but there’s no one clear path to success.
While researching financial advice, you’re likely to run into the terms “asset management” and “wealth management.” But what are they, exactly? And how are they different from each other?
Let’s dig into it.
What is Asset Management?
Asset management is the process of increasing wealth through investments. An asset manager is a type of financial advisor that has expertise in investments – stocks, bonds, mutual funds and ETFs.
Generally, an asset manager will pursue investments on behalf of their client and report back results.
What is Wealth Management?
Wealth management is a much broader look at your total finances. Wealth management is made up of more than just your investments and retirement plan—it includes all of your assets, from business interests to real estate.
Your personal wealth advisor has the experience to help maximize your assets and build your wealth in a stable and diversified way. A wealth advisor can still pursue investments on a client’s behalf, but they may also bring opportunities to a client without acting on them.
Additionally, wealth managers are more likely to be fiduciaries while asset managers are less likely to be fiduciaries.
⇾ Read Now: What is a Fiduciary?
What’s the Difference Between Asset Management and Wealth Management?
Asset management is only one part of overall wealth management. Asset management focuses exclusively on investments, while wealth management takes a broader approach to maintain, increase and strategically use your overall money.
An asset manager will act on your behalf through investments to grow money. A wealth manager will act on your behalf and with you to create solid financial plans for your wealth.
With almost 70 years of experience combined, our wealth advisors understand what it takes to make the most of the money you make.
We’re proud to be Five Star Wealth Managers
In conjunction with Mpls.St.Paul Magazine and Twin Cities Business, Five Star Professional has recognized an outstanding group of Twin Cities-area wealth managers. Five Star Wealth Managers are named using an in-depth research methodology that includes ten objective criteria.
If you’re planning for college, don’t be afraid. There are many avenues you can take to save yourself money, time, and stress during your college planning process.
Greater Midwest Financial Group is a financial advisor firm serving St. Paul, Minneapolis and the wider Twin Cities area. We specialize in wealth management, retirement planning, asset management and other personal finance needs.
Greater Midwest Financial Group is a financial advisory firm serving St. Paul, Minneapolis, and the wider Twin Cities area. We specialize in wealth management, retirement planning, asset management, and other personal finance needs.