Wealth Management: Everything you need to know!

Wealth management is an area that requires special expertise. It implies not only a good knowledge of the financial markets, but also a certain ability to develop tax strategies. What is asset management ? Who does wealth management? When should you call on a wealth manager? And, what training leads to the profession of wealth management advisor? We answer you!

Wealth management, what is it?

Wealth management consists of the management of an individual’s assets, combined with financial management advice. The main mission of this activity is then to determine the budget as well as the financial priorities of a client, with a view to profitability.

There are several types of wealth management. The first is traditional management. In this form of management, the manager manages a financial portfolio by buying and selling securities. The second is active management, which involves buying stocks with a specific objective. Thus, you can, for example, invest in a company in order to have regular dividends. The third type of wealth management is passive management. In this form of management, the client relies entirely on the decisions of his financial adviser as to the investments of his financial assets.

Wealth management is therefore a service that helps people manage their wealth. This can be done by professional advisers , banks or online platforms. It also includes areas such as tax planning, retirement planning, and the estate plan.

The exercise of the profession of wealth manager or wealth management adviser requires the validation of a title obtained at the end of professional training. This is the case of the Wealth Management MBA, which prepares candidates to be directly operational on the labor market.

Who does wealth management?

Wealth management is a field of expertise that consists of managing financial wealth and making the capital grow. Wealth managers can thus be bankers, stockbrokers, or be assigned to pension funds.

These finance professionals have in-depth knowledge of the legal and tax aspects of the various investment solutions, and remain on the lookout for the best investment opportunities for their clients. Wealth management is therefore an area that requires solid experience and goodwill towards clients.

Wealth managers are also known as mutual fund and life annuity dealers. Indeed, wealth management is an area of ​​expertise that consists of managing financial wealth and making the capital grow. For asset managers, it is also a question of assisting investors in the development of their investment strategy, and this, according to their investment objectives, their risk profile and their sensitivity to risk.

The main missions of wealth management consulting therefore consist in advising clients by simplifying their legal and tax environment. After having drawn up a complete asset balance sheet, the manager assesses the potential financial risks and informs his client of the best strategy to adopt regarding the management of his assets.

To accomplish his mission, the asset manager has excellent teaching skills. In order to better explain the issues and strategic decisions related to the assets of his client, the financial professional must have solid knowledge in the field of accounting, economics, law, but also taxation.

Who can manage a heritage? Asset management advisers are required to be registered with the organization for the register of insurance, banking and finance intermediaries (ORIAS), in order to be able to exercise their profession legally.

When should you call on a wealth management advisor?

The situations and contexts in which some people need the assistance of a wealth management advisor vary according to need. This may involve, for example, making their assets grow in order to ensure the future of their children, or in order to organize a succession as they approach the end of their retirement. But also, other reasons can lead individuals to be advised in the management of their assets: the expansion of a real estate portfolio, or, quite simply, the growth of their portfolio.

Legacy

When it comes to inheritance or succession, it may be essential to call on a wealth manager. The latter will take charge of the administrative and accounting aspect of the estate. He can legally carry out the inventory of assets and plan the settlement of liabilities. In the event that the deceased leaves debts, the wealth management advisor puts in place all the available solutions in order to recover the debts as well as the payment of the debts.

Retreat

A person’s retirement represents a pivotal period in their life. Indeed, when an individual moves from active status to retired status, it is important for him to ensure that his financial stability allows him to live peacefully . Thus, the intervention of a wealth management advisor allows him to obtain advice on the various investment strategies to be implemented. But also, the manager offers retirement planning and asset allocation. In this specific case, the finance professional can then propose to diversify the investments in order to optimize their profitability: shares, bonds, real estate purchases, resale and rental of real estate, etc.

The first step in wedding planning is to establish an open dialogue about the financial situation of the future spouses, before their union. Then, the wealth manager develops a plan for the future allowing the couple to develop a solid financial plan that allows them to control their budget throughout their marriage, and possibly, after their divorce.

Property investment

In the past, the role of a wealth manager was to ensure that their clients had enough funds to maintain a certain standard of living. Today, with a more complex and volatile economy, wealth management involves advising on investment opportunities with the aim of maintaining or increasing the net worth of clients’ portfolios.

The real estate market is booming and investors are scrambling to increase their real estate wealth. It is therefore hardly surprising that banks are recruiting wealth management specialists who specialize in this area. Indeed, banking institutions are looking for real experts in wealth management in order to design capital investment strategies that will be invested in the real estate sector.