Asset management and wealth management are two crucial financial services for individuals - and two services that are often confused with one another. But what’s the difference between the two? And which one is better for you?
What’s the Difference Between Asset Management and Wealth Management?
Asset management is the process of increasing wealth through investments. An asset manager typically pursues investments on behalf of their clients.
Wealth management is a much broader look at your total finances - it includes all of your assets, from business interests to real estate. A wealth manager typically offers advice to their clients, although they may also execute actions with permission.
Which is Better: Asset Management or Wealth Management?
If you’re looking for a comprehensive financial strategy, wealth management is the better option. A wealth manager will also provide asset management services, so you’re still receiving that benefit. A wealth manager also has more insight into your overall finances and can offer holistic advice, while an asset manager will be focused solely on increasing your wealth.
⇾ Read Now: How Wealth Management Works
Wealth management includes all of the following services, in one:
- Benefit Planning
- Educational Planning
- Estate Planning and Wealth Transfer Services
- Insurance and Risk Management Services
- Long-term and Elder Care Services
- Financial Organizational Services
- Retirement Planning Services and Tax Planning Services
- Services for Business Owners or Executives
Wealth management is more than just advising you on new opportunities – it’s a holistic strategy that looks at your overall wealth to determine best paths forward. It also makes it easier to plan when you’re consolidating your wealth management and advisement in one service, instead of juggling multiple services across different organizations.
How Does Wealth Management Work?
A financial advisor at GMFG will walk you through the planning process. The plan delivery typically involves three distinct stages:
- Discovery: We gather the information we need to develop a plan and sit down with you to have an in-depth and insightful discussion on your goals and priorities.
- Delivery: We deliver your financial plan and our recommendations to meet your goals in a concise and straightforward way.
- Implementation: We take the steps to implement the recommendations and start your journey toward financial independence
After your financial plan is in place, our work doesn’t end. Your financial plan needs to be adjusted and reviewed continually. As life changes, so do your goals and how to most effectively reach those goals. We’ll stay on top of your finances, keep up on the latest financial laws and industry changes and prepare for your annual review or as often as necessary, where we’ll thoroughly cover your latest assets and your current financial standing.
We’re always here for you.
Want to get started? Contact one of our wealth managers to begin the 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.