The financial services industry has classified “advice” as financial planning, not investment advice (the selection of investments), which is just one part of wealth management. If Robo-advisors have done nothing else, they have revealed that much of the investment advice in selecting investments can be automated. With technology doing much of the work as it relates to the investment selection part of the equation, investors need to think more broadly about their financial planning.
Financial planning includes estate planning, tax planning, and philanthropy needs to be managed through wealth management services provided by a financial advisor. Wealth management isn’t exclusive to only high net worth individuals but is best suited for investors with complex situations and financial goals. This is where a financial advisor can help make an impact for their clients.
The human side of wealth management focuses on the relationship the client has with the advisor and how much time and commitment the advisor can provide. Managing the relationship is not customer service, but a crucial element involving other professionals to help preserve the client’s wealth and ensure the desired outcome.
At times wealth management encompasses helping the client work through psychological decision making, whether it be to correct past investing mistakes, prevent new ones, or plan their legacy. “Money” tends to be emotional and requires human interaction to grow appropriately. An advisor’s advanced skills determine how to best manage the client’s wealth through human attributes outside of technology:
• Maintaining a relationship with the client and interacting with the public
• Applying knowledge and developing creative strategies to solve problems and preserve wealth
• Seeking additional advice or training and developing an additional team of experts that includes attorneys, accountants, and others to benefit the client and protect their wealth.
If you would like to find out more about wealth management services to determine if it is right for you, please contact our office for a consultation.