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What is Wealth Management?

It's not just for the wealthy, so who needs it?
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You've probably heard the term wealth management before, but you may not know what it is or what it does. One thing is for certain - wealth management is not just for the wealthy.
Defining Wealth Management
Before we get any further, let's go over what the term wealth means. Most of us likely associate the word wealth with "wealthy," meaning rich or having lots of financial resources. The truth is, the term wealth simply means the sum of all of your possessions and money.

Your wealth includes things like cash, stocks and bonds, real estate like your home or condo, and other assets like cars, computers, jewelry, or anything else of value. So when we look at it that way, essentially everyone has some degree of wealth, whether or not they are "wealthy."

With that out-of-the-way, let's go over the basics of what wealth management is. In short, wealth management is a type of financial service that helps guide individuals or families in the best way to not only grow their finances but help to protect them as well.

Some examples of this include investment and savings advice, and different types of insurance products like life insurance that can help ensure a families security if a provider faces a tragedy.
Types of Wealth Management
As the idea of wealth management can be quite broad, most wealth management providers tend to specialize. One typical example is an investment manager. This is a person or company that helps manage money to increase the chances of that money being productive. That may sound like a mouthful, but it merely means this type of wealth manager helps put your money to work for you. Most banks offer a mere pittance in interest on deposits, so it's essential that if you have cash on hand you invest a portion of it wisely and safely. This type of wealth management company or professional can help with this.

Another dominant type of wealth management focuses on protecting assets and securing wealth in the event of tragedy or loss. One primary way that assets can be insured is by getting the right kind of insurance. And so this type of wealth management will focus on helping you secure your wealth and assets such as your home or other valuable physical assets like gold, diamonds, and so on.
Is it Right for You?
Wealth management services aren't for everyone, but most people that could benefit from using it probably aren't. If you're a young person straight out of high school or college and you're just getting your life set up, it's unlikely that you're going to have much wealth to worry about. You'll likely need only primary insurance like auto or renters insurance and not much else.

Conversely, if you are an established working professional with a spouse, children and assets to protect, you are much more likely to benefit from wealth management services. And it goes without saying, if you are a wealthy individual you will most certainly benefit from all types of wealth management.

The most important take away from this is that wealth management is not just for the wealthy. Even regular middle-class salaried employees could stand to benefit from wealth management services.