Excellent retirement plans aim at protecting your future. The best way to protect and plan for your retirement is through wealth creation, which you’ll do through proper investment. Yet, you could be unsure which professional can help in this process. The choice is between an investment and a wealth manager, each offering specific services. Here are the differences between what you expect from these two professionals.
Approach and Focus
Investment management focuses on handling financial assets and investments. In this case, a professional will help you purchase, sell, and manage shareholdings, bonds, and even property investments. The idea is to meet particular investment goals, whether long or short term, depending on the client.
On the other hand, wealth management is a little broader, combining investment management with other financial services to meet the needs or objectives of the client. It aims at building incredible wealth and managing it effectively, thanks to the multiple financial tools at hand. According to professionals like Frederick Baerenz, wealth management is the highest form of financial planning.
Products
Investment management exposes a client to the various investment opportunities at hand. An excellent investment manager will help identify the right investment opportunities, including shares, bonds, and properties, and help manage them. Here, the goal will be to profit from the investment. Investment management is investment-oriented.
In contrast, wealth management goes beyond identifying and managing specific investment portfolios. Wealth management will indicate the exact financial picture of your investment, from the short-term effects and benefits to the long-term impact on your financial standing. The aim will be to get into an asset that captures your interests and goals. Wealth management promotes monetary stability and financial solutions.
Services
Wealth management focuses on multiple services aiming at enhancing wealth creation and utilization. It focuses on the client’s needs, objectives, and financial status, making it easier to personalize investment portfolios. The ability to draw upon multiple services makes wealth creation and management seamless. Wealth managers will combine different financial services, including tax compliance and accounting, to ensure that you grow financially.
On the other hand, investment management focuses on one thing: investment. This service does not focus on your financial standing. Instead, you get an array of investment opportunities that will likely offer impressive returns. According to experts like those at DeMolay, investment requires you to maximize returns, whether or not on risky ventures.
In conclusion, everyone aims at financial stability and inclusion. Yet, you need exemplary professional service to guide you. The insights above will help.
