Updated Friday, October 24, 2014 as of 2:46 PM ET

Advisors Getting It Wrong on 'Wealth Management'?

Are advisors misusing the term "wealth management"?

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Comments (6)
One question I have is -- should advisers be focused only on "wealth management" (ie: working with clients that have built up a good amount of wealth) -- or should we also consider "wealth building" which might imply we also work with clients much earlier in their life cycle -- advising on careers, running small businesses, real estate, etc etc. Sor if this seems a dumb question, I am new to this field.
Posted by Pravin M | Sunday, December 29 2013 at 6:36AM ET
Regarding the first comment, I believe truly committed professional advisors are very much engaged in the early part of their clients' life-cycle doing and involving themselves the important planning that you mention. You may be new to the field but you are clearly thinking ahead of your experience. Another stage in the life cycle (often overlooked), is in the preparation of heirs to receive the wealth that's been created along with the meaning and intention behind it. Wealth management today is more than the creation, management and protection of the money, it's also about doing what we can to assure the responsible multi-generational distribution (consistent with the clients desires)that includes (along with the stuff) transferring the leadership, wisdom, and stewardship that created it. If clients had that understanding of wealth management, it would be a different world.
Posted by William H | Monday, December 30 2013 at 9:26AM ET
I have argued this for years as a consultant and coach to FA's. Unless you specifically focus on those with 5 million and above, your clients do not think they are wealthy. Wealth Management is an overused and terrible name for a Financial Services firm. So, I agree with the article, but for even more reasons.
Posted by matthew h | Monday, December 30 2013 at 9:47AM ET
If you think "wealth Management" is an overused and misused term, try asking your clients this: "What is the definition of a financial advisor?"

Is it someone who puts clients first, acts as a fiduciary? Is it the same as investment advisor? financial consultant? Broker?

"Confusion to the enemy and the enemy is the customer" is still the mantra at many wirehouse firms and so-called independents!
Posted by JOSEPH | Monday, December 30 2013 at 12:30PM ET
Wealth Management (and, Wealth Planning) MUST be inclusive of much more than giving advice on the accumulation of assets and managing those assets once they are accumulated. The "planning" community, by and large, has restricted its client involvement to gathering and managing assets while ignoring the interrelationship among thirteen identifiable Wealth Management Issues when working with clients. It is because of this that I will be wrote and will be releasing my new book for affluent consumers early, 2014. COVERING YOUR ASSets should be a wake-up call for advisors and will hopefully be a resource for expecting more comprehensive planning.
Posted by Leonard C | Monday, December 30 2013 at 7:07PM ET
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