Contrary to popular belief, you don’t have to be a millionaire to get professional financial help. However, it pays to know which service will fit your needs. Depending on your situation, you may choose to work with a financial advisor or a wealth manager.
While these terms are often used interchangeably, there are distinct differences between a financial advisor and a wealth manager. Though their goals are to generally help their clients have a stable and sustainable financial plan, they can differ in terms of their clientele, the services they provide, and the roles they play in financial planning.
Financial advisors refer to professionals who offer a broad range of financial services. Precisely because of this large scope, financial advisors don’t normally refer to just one type of advisor. Rather, there are many kinds of financial advisors who each have their own specialty. For instance, a certified public accountant (CPA) typically deals with taxes and accounting. Those who want to manage their estates and insurance policies can turn to a chartered life underwriter (CLU).
On the other hand, a financial planner focuses more on a client’s future financial plans. In some cases, financial planners acquire certification to become a financial risk manager (FRM), chartered financial counselor (ChFC), or chartered financial analyst (CFA). For instance, if you own a local business in Illinois, then you can look into financial planners in Illinois to get guidance for your business’s financial future.
What’s important to remember about financial advisors is that they can deal with clients of any income level.
A wealth manager is a kind of financial advisor, except they typically manage the assets and finances of people who have a high net worth or ultra-high net worth. For instance, a wealth management firm in Illinois can choose to work with clients who have a minimum net worth of $250,000. In some cases, wealth managers choose to deal with clients who have a net worth of a million dollars or more.
Compared to other financial advisors, wealth managers often offer their services as a single comprehensive package. Depending on their clients’ financial needs and situation, wealth managers can help with:
- Tax services, especially for charitable giving
- Financial, retirement, legal, estate, and philanthropic planning
- Risk mitigation
- Investment management
Ultimately, your net worth will determine whether you should get a financial advisor or a wealth manager. If you belong to those with a high net worth or ultra-high net worth, then you can choose to work with a wealth manager. Otherwise, you can get the expertise of a financial advisor, especially if you need a specific service.
Financial advisors and wealth managers all have one goal: to help their clients make sound financial decisions and have a plan for their financial future. If you’re looking for a financial planning service that would suit you, contact Hagemann Wealth Management to get a free financial health checkup!
The opinions voiced and content in this material are for general information only and is not intended to provide specific advice or recommendations for any individual. The opinions expressed in this material do not necessarily reflect the views of LPL Financial.