Wealth management involves accounting for all your assets and liabilities so you can help them grow. It’s an umbrella term that covers a variety of financial services.
What Is Wealth Management?
From a commercial real estate investor’s viewpoint, wealth management is the science of decoding and enhancing their financial situation, including making informed decisions that will enhance the worth of their real estate portfolio.
From the perspective of a financial advisor, wealth management is their ability to deliver a comprehensive menu of financial products and services to a commercial real estate investor in a consultative fashion. The advisor will develop an intimate understanding of their client’s wants, needs, and specific situation, then craft a personalized strategy to meet the unique needs of the client.
Wealth Management Services May Include:
Wealth managers can charge for their services in numerous ways. Some will charge annually, hourly, or operate for a flat fee. Others may work on commission and gain profits from the investments they sell. Fee-based wealth managers earn a mix of a fee plus commissions on the products they sell to clients.
The top credentials of a qualified wealth advisor include:
Understanding Wealth Management Services
Wealth management comprises more than investment advice. It can also include components of an individual’s financial life. Instead of using services and products from numerous consultants, a high-net-worth person may benefit from a unified approach.
Under this strategy, a wealth manager will coordinate the products and services needed to manage their client’s assets, as well as developing a strategic plan for the individual’s current and future needs and goals.
Example of Wealth Management in Commercial Real Estate
Think of a client who has $3 million of commercial properties, a spouse who has recently passed away, and a trust for their grandkids (or a family limited partnership). A wealth manager will not only ensure the client’s properties have maximum earning potential, but they would also provide trust and will services for estate planning and tax minimization.