Wealth management combines both financial planning and specialized financial services, including personal retail banking services, estate planning, legal and tax advice, and investment management services.
The goal of wealth management is to sustain and grow long-term wealth. The net worth needed to qualify for wealth management services vary among institutions, but the net worth threshold typically starts at about $20 million. Also, depending on the institution, the range of services available is highly customizable in order to meet the specific needs of the client.
When thinking about high net-worth individuals, there's a tendency to view them as people without problems, living a life of luxury. Because they've been able to amass a significant amount of wealth over time, they're set for life - or so the thinking goes.
In fact, having a high degree of wealth is far from a care-free status. Owning wealth means needing to take care of it, whether through implementing tax planning, setting up an orderly estate or creating a successful investment plan. This might explain the soaring popularity of wealth management.
Perhaps the biggest reason for the importance of wealth management is the issue of retirement. The cost of living has been, and still is, steadily rising. At the same time, our pension system is also due to come in for increased strain as the number of elderly in the country rise. Headlines in recent years have fixated on concerns about the adequacy of the age pension. Under these circumstances, it's increasingly important to formulate superannuation and retirement strategies - as well as ensure your wealth is protected - in order to have as secure a retirement as possible.