Wealth Management
A comprehensive financial advisory service combining investment management, tax planning, estate planning, and other services for high-net-worth individuals.
What is Wealth Management?
Wealth management is a high-end financial advisory service that integrates investment management, financial planning, tax optimization, estate planning, insurance, and sometimes legal and banking services into a comprehensive offering for affluent clients — typically those with at least $500,000 to $1 million in investable assets. Unlike standalone investment advisors who focus only on portfolio management, wealth managers take a holistic view of a client's entire financial picture, coordinating across disciplines to minimize taxes, protect assets, plan for transfers to heirs, and align investments with life goals. Wealth management firms range from large private banks (JPMorgan Private Bank, Goldman Sachs Private Wealth) to independent registered investment advisors (RIAs).
Example
A business owner sells their company for $8 million and hires a wealth management firm. The team creates a comprehensive plan: investing proceeds in a diversified portfolio (60/40 allocation), executing a Roth conversion strategy over three years to minimize future taxes, establishing a trust structure for estate planning, reviewing life and umbrella insurance coverage, and setting up a donor-advised fund for charitable giving.