Trading & Wealth Management

What is private wealth management?

Private wealth management is an investment advisory practice that incorporates financial planning, portfolio management and other aggregated financial services for private individuals, not for corporations, trusts, groups or other types of clients. From the private client’s perspective, private wealth management is the practice of solving or enhancing her financial situation and achieving her short-, medium- and long-term financial goals with the help of a financial adviser. From the private financial adviser’s perspective, private wealth management is the practice of delivering a full range of financial products and services to an affluent clientele as a financial consultant so that the clientele can achieve specific financial goals. Private wealth management services can be provided by larger corporate entities such as Charles Schwab, independent financial advisers or multi-licensed portfolio managers who focus on high-net-worth private clients. Large banks and large brokerage houses offer various investment products to individuals, although many private individuals lack the time, effort or knowledge to manage their finances successfully. To make up for what may be lacking, private individuals seek the consultation of wealth managers who specialize in managing the finances of private individuals, often high-net-worth individuals (HNWI). The wealth manager sits down with the private individual and goes over the financial goals that the client would like to attain. Then, the wealth manager puts together an investment strategy to help that person achieve her goals. The wealth manager manages the client’s money and invests in the investment products that make sense for the client.