What is Wealth Management?

In this month’s post we’re looking at another area of the Financial Services industry that you may consider a career in. Wealth Management.

 

What is Wealth Management?

Wealth Management is the process of analysing and reviewing one’s assets and money and deciding how best to manage it to keep one’s wealth growing and protect its value. A wealth manager is a professional who can provide this service. They normally focus on investment plans, estate planning, tax and retirement. If you want to be working with high-net-worth clients, then this may well be the job area for you.

Investment plans are focussed on the individual's specific situation, suited to their targets and current wealth state. The wealth manager will look at the client’s portfolio of investments and advise any changes or future investments that could be made to grow and rebalance their portfolio. This can also include a financial plan to help with savings, as major life changes occur such as marriage or divorce and can be consistently monitored to adapt accordingly.

Tax efficiency is another undertaking a wealth manager can look at. Tax efficiency involves wealth managers organising a client’s finances to minimise their tax liability. For example, if an individual had multiple sources of income, it can be difficult to manage taxes in order not to be overcharged. This is where a wealth manager comes in to help keep a client’s taxes in check. 

Estate planning involves the wealth manager creating a plan for inheritance of their client’s assets upon death. They can help reduce the size of the taxable assets, as well as help creating a will.

Wealth managers tend to work with more affluent individuals with high net worths. This is mainly due to the fact that without many assets an individual would not gain as much from the structure a wealth manager introduces in order to manage one’s wealth.

 

How to become a Wealth Manager

A bachelor’s degree in a business-related field is needed to become a wealth manager. This can include business, economics or finance, or closely related subjects. A post-graduate degree in similarly related subjects would further one’s understanding of these subjects and could help one gain a competitive advantage when employers are looking at candidates.

A wealth management certification is not necessary but can be very useful to prove to employers your expertise. There are many certifications that a potential wealth manager can take. These include Wealth Management Certified Professional (WMCP), Chartered Financial Consultant (ChFC), Chartered Wealth Manager (CWN), Certified Wealth Preservation Planner (CWPP), Certified Financial Planner (CFP) and Accredited Wealth Management Advisor (AWMA).

If you are considering a career in Wealth Management, Artemis Recruitment is here to help. Contact us or check out our jobs page to kickstart your journey to your new job role.