Is Financial Advisory the same as Wealth Management?

Despite many similarities between wealth management advisor and financial advisors, the terms have quite a few distinct differences. It is essential to know these differences before seeking professional financial planning assistance.

While both can offer similar services, wealth managers typically work with individuals with high net worth. Managing your portfolio of assets can help you reach your goals by creating a financial plan with a financial advisor.

What is a financial advisor?

A financial advisor helps you save up for a wedding or plan for a long-term future like retirement so that you can make the most of your money. The goal is to align your finances with your goals by considering all aspects. People often need to change their lifestyles when they want to reach their financial goals.

What is Wealth Management?

The purpose of Wealth Management is to provide wealth management services to high-net-worth individuals and highly wealthy businessmen. As a wealth manager, you will help preserve and increase your existing wealth. A wealth manager identifies key profit-making opportunities for investors. Thus, wealth management can be summarized as protecting your wealth and identifying methods for acquiring more wealth.

​​What are the Difference Between Financial advisory and Wealth Management?

Wealth management and financial advisory differs in the following ways:

Relevance

Each strategy is aimed at a different group of individuals. A high-net-worth individual with sufficient wealth can benefit from wealth management. At the same time, it preserves existing wealth while growing it multiple times. Compared to a financial advisor, which is for everyone, HNIs and non-HNIs alike. By planning your finances, you will achieve your financial goals by saving hard-earned money and investing.

Objective

To achieve your life goals, managing your income and expenses is essential. The program evaluates whether your current wealth is sufficient to meet your financial goals and then utilizes it for those goals. Investing in different financial instruments for growth is the point of wealth management, which involves managing existing and accumulated wealth.

Scope

A financial advisor keeps track of your monthly income, expenses, savings, tax savings, and tax planning. This helps develop a financial roadmap to match your desired financial objectives by considering the accumulated wealth. Contrary to that, wealth management advisor focuses solely on how to increase your wealth with high-yielding investments.

Client Involvement

Individuals are not required to participate actively in financial advisor, and an individual needs to follow the plan devised by a financial planner. The wealth management advisor must have an active role in creating and preserving wealth, however, to optimize the investment decision.

Consultant remuneration

Wealth management advisor and financial planners are paid completely differently. The remuneration of financial planners increases based on the complexity of the work they are entrusted with, and starting fees start at $500. On the other hand, wealth managers charge a percentage of a client's portfolio, and a portfolio manager usually charges between 1-2% of the portfolio they manage per year.

The Takeaway

Financial planning and wealth management are interconnected. Investing in experiences over material goods is what wealth managers help individuals to do. In addition to managing your money, wealth managers help you set financial and non-financial goals.

At Tull Financial Group, we have the best team of financial advisors who can help you get most of the financial planning and even help you manage your wealth effectively. As our financial planners, we are committed to assisting people in improving their lives by using sound financial planning”.

For any further information about our financial planner, do visit us https://tullfinancial.com/