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What’s Wealth Management, and Do You Need It?

Sarah Bromley
Sarah Bromley
December 26th, 2022
wooden blocks

Wealth management is often considered a comprehensive service that takes a more holistic view of the client’s financial picture. This includes various things, such as estate planning, financial planning, tax planning, and investment management.

Most people consider it a high-end service. Sometimes, companies require a client to have a minimum net worth or a particular level of investment assets. When customers need those things, it’s often useful to consolidate various financial advice types into one place. It’s more convenient and easy to keep track of things.

Key Objectives for Wealth Management

The objectives for wealth management can vary based on the investor. Every client has different situations and needs, and a good advisor should tailor the advice accordingly. Here are some of the most common goals for customers:

  • Designing strategies and setting goals to achieve results
  • Managing finances and investments effortlessly
  • Helping clients maximize their wealth overall
  • Setting strategies to pass on their wealth upon death (estate planning)

What’s Wealth Management?

It’s time to dive in deeper into what wealth management truly means. Overall, it’s a holistic service that helps high- and mid-net-worth clients manage liability exposure, grow their wealth, and devise ways to pass that money onto designated heirs upon death.

Typically, these services use a comprehensive approach to look into the financial situation of clients with a high net worth. Instead of using a financial advisor who focuses on planning and investment management, there are many other features available.

Here are some of the typical services provided:

  • Retirement planning
  • Legal services
  • Philanthropic planning
  • Estate planning
  • Accounting and tax planning services
  • Comprehensive plans for financial needs (current and future)
  • Investment advice and management

In some cases, the services are broken up and delivered by outside partners. For example, legal services are often handled by an attorney or lawyer associated with the wealth management firm.

How Big a Net Worth Do You Need for Such Services?

Usually, there are no specific rules in place to determine how much money an investor needs to seek out wealth management services. Typically, individual wealth managers and companies have minimums in place for investable assets, net worth, and other metrics. It’s important to seek out this information when choosing your firm.

In most cases, companies require a minimum of about $2 million to $5 million in assets. Generally, it makes sense to use wealth management firm services for those amounts of money. Anything below that could be hard to justify the expense of using the company.

Just remember that the minimum levels vary by the firm and can change based on your circumstances. For instance, the wealth manager might want to take on the child of a larger client to ensure that the wealth inherited stays with the company.

Likewise, they may wish to establish a solid relationship with young professionals, including attorneys and doctors, to retain that business when they earn higher incomes.

How to Choose an Excellent Wealth Manager

When selecting a wealth manager, you should look at many things:

Does the firm work with similar clients as you? Some wealth managers focus solely on certain customer types. If your situation doesn’t really fit in with that, then the company might not be a good option.

Check the manager’s qualifications, too. Here are some criteria to consider when choosing your wealth manager:

  • Do they hold any professional designations? Examples can include Chartered Financial Analyst (CFA), Certified Public Accountant (CPA), and Certified Financial Planner (CFP).
  • What’s their experience level within the wealth management space?
  • What wealth services does the company provide?
  • What type of fees are charged?
  • How often will you need to talk with them?
  • Are they part of a bigger firm or an independent one?

What’s a Wealth Manager Do?

Traditionally, wealth managers offer financial advice so that clients can protect and grow their wealth. However, it goes above just offering tips on investments and designing a financial plan. That’s why they typically work with people of a higher net worth and partner with other professionals, such as attorneys and accountants.

How Do Wealth Managers Get Paid?

Wealth managers are paid in many ways. The most common compensation methods include:

  • Percentage-based from the client’s assets
  • Flat-fee arrangement

Differences Between Portfolio Managers, Wealth Managers, and Financial Advisors

The wealth manager offers a holistic and comprehensive view on various financial areas, such as philanthropy, legal/estate planning, retirement planning, investments, and tax/accounting needs.

Alternatively, the portfolio manager focuses more on investment management and doesn’t provide advice or services beyond that. They will deal with cash management, tax-loss harvesting, portfolio management, and investment selections.

Then, you have a financial advisor who offers many services, such as investments, tax planning, basic retirement plans, and financial plans.

Wealth Management Strategies

Typically, wealth management strategies vary based on the client’s needs. The reason you use such a firm is to find ways to maintain your wealth and grow it. That means different things to everyone.

Generally, it entails coordinating the moving parts of your financial situation into a comprehensive plan. This can include investments, taxes, and retirement. Here are a few examples of strategies available:

  • Developing a succession plan (business owners)
  • Ensuring client estate plans meet their preferences and needs
  • Coordinating appropriate tax strategies into the wealth planning
  • Developing a comprehensive investment wealth strategy that covers the client’s many accounts

Alternatives to Traditional Wealth Management

Historically, wealth managers have played an essential role in helping high-net-worth individuals to look after their net worth. While they still have their place for those who prefer one-to-one communication, the digital age has presented us with far more options.

Investors can now turn to digital wealth management software instead, making it easier to take a DIY approach — and avoid the costs of a wealth manager, making wealth management more accessible to everyone.

These programs allow you to connect your investments across different places so you can view your entire portfolio from one dashboard. That way, tracking your performance, reviewing your strategies, and rebalancing your assets where necessary is easier. Plus, you’ll be able to retain greater control over your investment decisions, making this a more attractive approach for experienced investors who can execute their own strategies with the right tools.

On Vyzer, we allow you to add diverse investment types, from real estate syndications to brokerage accounts — and we also provide tools that make managing and controlling your portfolio easier. For instance, our Cashflow Projection feature uses AI to predict how your investments will perform under different scenarios, and we also provide you insights relevant to your portfolio.


Do you think you require wealth management services? They can be highly beneficial for those with a high net worth who want to take a hands-off approach or to feel a personal touch. However, if you’d prefer to keep your costs at a minimum and retain more control over your portfolio, this is more viable than ever thanks to the emergence of digital portfolio trackers.

That’s where Vyzer comes in. Our wealth management platform is the perfect solution for managing your portfolio efficiently and effectively. Try it for free!