Do I need a Financial Adviser or a Wealth Manager?
In life, there are plenty of tough decisions. How to best manage your finances shouldn't be one of them. But when it comes to seeking professional help, do you need a financial adviser or a wealth manager? Our guide will help you decideGet financial advice
Here’s a question for you: Android or iPhone?
At their core, both are phones and share the same shape. But the similarities end here, as each has a very different offering of features.
So, when it comes to your choice of phone, the only right option is the one that is right for you and your needs. The same rule applies to managing your finances.
To answer that question, you first need to understand the difference between wealth management and financial advice.
Our guide explores the differences between financial advisers and wealth managers to help you determine which option is best for your needs and financial goals.
Understanding the differences between financial advisers and wealth managers
The line between financial advisers and wealth managers can often become blurred.
While the two share some similarities, there is a difference between them.
A financial adviser is an expert who provides guidance and advice to a variety of clients on a wide range of financial matters.
While there is some crossover, financial planners and advisers offer different services. The latter is typically more associated with financial products.
For a more detailed look, read our article on the difference between financial advice and financial planning.
They will typically offer financial services such as:
- Financial planning services
- Retirement planning
- Tax advice
- Insurance coverage advice
- Estate planning
- Investment advice
Unlike financial advisers, wealth managers offer a more comprehensive service.
That is because wealth managers are simply a subset of financial advisers.
In other words, wealth managers assist clients across multiple aspects of their financial life rather than just focusing on one area.
In general, wealth managers offer the same services as financial advisers. However, most also provide more specialised services such as:
- Investment management services
- Risk management
- Philanthropic planning
- Tax services/tax planning
The main difference between wealth managers and financial advisers is the type of client they typically work with.
Broadly speaking, wealth managers work with high-net-worth individuals (HNWIs), those with $1 million on more of liquid investable assets. However, their services are not only reserved for wealthy individuals.
Those with complex financial situations may also benefit from a more holistic approach to financial planning.
Because of how closely linked the two are, most financial advisory firms, like Holborn Assets, also offer wealth management services.
Read our guide if you want to learn more about wealth management and what the service entails.
That covers the difference between a wealth manager and a financial adviser. Now, let’s take a look at the benefits of each.
Financial adviser vs wealth manager – the benefits
Like our Android vs iPhone analogy at the top of this article, one is not better than the other. Both simply have different use cases.
It’s the same when comparing a wealth management adviser to a financial adviser.
Both are financial professionals, but both have different use cases and benefits.
Benefits of working with a financial adviser
Some of the benefits of working with a professional financial adviser include the following:
- Decision-making: With an extensive list of products and options to choose from, sometimes, knowing which is suitable for your money can be challenging. A financial adviser can provide expert advice and guidance to help you make more informed decisions.
- Creating a financial plan: Proper planning is the best way to reach your short- and long-term goals. A financial adviser can put together a tailored plan to help you stay on track.
- Advice on investing: A financial adviser can recommend investment products that best suit your needs, goals and attitude towards risk. They can also make you aware of any tax implications so you can avoid any pitfalls along the way.
- More choices: Working with a financial adviser can help you access products and options that may otherwise not have been available.
In terms of the benefits, this just scratches the surface. Read our guide on the benefits of financial advice services, where we go into more detail.
Benefits of working with a wealth manager
Some of the benefits of working with a professional wealth manager include the following:
- Investment portfolio management: Wealth managers develop an investment strategy to help you reach your future goals. They can also manage the portfolio and make investment decisions on the client’s behalf.
- Holistic approach: Wealth managers take a holistic approach to financial planning. This means they consider a client’s complete financial picture rather than just focusing on one area.
- Access to a variety of services: Remember, wealth management takes into account all aspects of your financial life. And while wealth managers are experts in terms of managing client assets, they also work with other professionals. For example, they may work with experts who provide legal services or accountants.
- A one-stop solution: Wealth management combines all financial services into one package and offers a personalised approach to financial planning.
This is just a quick overview. To learn more, read our article on the benefits of wealth management.
Do I need a financial adviser or wealth manager
The kind of expert you should work with comes down to a few things. Your individual situation, goals and the type of help you want are all factors.
Let’s say you’re just starting out and need help with something specific, like retirement planning. In that case, a financial adviser may be a good fit.
However, if you have a complex financial situation or you want a more hands-on service, a wealth manager may be better suited to help.
Summary: Is financial advice or wealth management best for me?
Ok, time to bring all of this full circle.
At the top of this guide, we asked you the question: wealth management or financial advice?
Hopefully, you have the information you need to answer that question. The next step is finding the right person for the job. After all, you are putting your financial life in this person’s hands.
Not sure how to find the right person for you? Read our article on how to choose a financial adviser to learn more.
Alternatively, read our guide on how to choose the right wealth management firm.
Professional advice with Holborn Asset
When it comes to managing your finances, wealth managers and financial advisers can provide valuable insights, tools and advice to help you reach your goals.
If you are ready to get started on your financial journey, we can help.
Holborn Assets is a leading global financial services company. We provide quality financial advice and wealth management solutions tailored to you and your needs.
Experience award-winning client service and achieve your financial goals with Holborn Assets. Book a free, no-obligation meeting today and learn how we can help you.