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The Elements of Financial Planning Driven Wealth Management

When financial planning serves its true purpose, it succeeds in expanding a client’s wealth through prudent investment and asset management.  Most people looking for wealth management in Wilmington, DE, and beyond probably have a basic understanding of what wealth management means, yet they might not understand all of the benefits and how it relates to financial planning.

Let’s take a look at the most important elements of wealth management driven by financial planning.



A Plain English Explanation of Wealth Management

Wealth management is best defined as an investment advisory service that is the synthesis of financial services designed to address affluent clients’ needs.  Wealth management starts with an initial consultation during which the financial advisor analyzes the client’s unique financial situation and goals.

This information-gathering stage establishes a foundation, upon which the financial advisor builds a highly personalized investment strategy.  This strategy includes the use of several financial services and products, each of which contributes to wealth growth and management in its own unique way.

Looking for a different approach to financial planning? Contact Clariti Wealth Advisors for a complimentary consultation!

The Role of the Wealth Management Advisor

Wealth management advisors, often referred to as wealth managers, are a type of financial advisor that uses an expansive view of available financial services, disciplines, and tools to manage wealth on a client’s behalf.  They typically provide investment advice, financial advice, estate planning, legal planning, tax services, accounting services, retirement planning, and more.

The overarching goal of these services is to properly manage a wealthy client’s money in exchange for a set fee.  This is an important point of note as wealth managers are typically compensated by fees as opposed to commissions.

Some other financial advisors receive a commission that is tied to upselling specific investment products and services.  In short, a wealth management advisor who works on a flat fee should not have a conflict of interest while financial advisors who are commission-based may have a conflict of interest because they are compensated in part or in total by a third party.

Wealth Management Extends Beyond Investment Advice

There is a common misconception that wealth management is nothing more than detailed investment advice for those who have a considerable number of assets.  In reality, this type of management encompasses all aspects of an individual’s financial life.  High net worth individuals are better served by a wealth management advisor’s holistic approach that is unified, as opposed to relying on a plethora of financial products and input from financial professionals.

Rely on a wealth management advisor for a coordinated approach to managing your wealth and asset allocation and this professional will provide the services necessary to make the best possible use of your money.  This is the expert guidance wealthy individuals need to set the stage for a successful financial future for themselves as well as their significant other and children, especially in the event of incapacitation or premature death.

Some wealth managers provide a litany of services within the overarching financial field.  However, there are those who specialize in one specific area.  The expertise of the specific wealth manager in question plays a large part in determining their primary point of focus.

The wealth management advisor you choose ultimately comes down to your specific needs and desires in the context of personal financial planning.  As an example, an individual who is primarily focused on transferring a business to a family member or other loved one will benefit from the assistance of an advisor who has expertise in this unique niche.


However, the majority of individuals with a high net worth require financial planning that is much more broad-based, including services ranging from estate planning to retirement planning and beyond.

In some situations, wealth managers are required to coordinate the input from other financial experts in addition to the client’s service professionals (accountants, lawyers, etc.) to develop the best possible strategy.  In fact, certain advisors even provide clients with banking services and/or advice pertaining to charitable endeavors.  In short, every individual with a considerable amount of wealth can benefit from the services provided by a wealth management advisor.  However, wealth management is especially helpful for individuals who have a wide array of diverse financial needs.


The bottom line is there are only so many hours in the day.  Wealthy individuals invest enough of their time working and pursuing their passions.  There is no sense spending the precious remaining hours attempting to perform DIY (do it yourself) financial planning when a wealth management advisor is available to do that work on your behalf.

Find the Wealth Management Advisor Best for Your Needs

No two wealth managers have the exact same specialties or clients.  As an example, there are those who work for regional or nationwide banks that typically narrow their focus on managing trusts, options for credit, insurance, and overarching estate planning.

Such a wealth manager is generally considered a consultant as their main focus is providing clients with guidance pertaining to the most prudent use of services and tools for wealth management.  Wealth management advisors who are directly employed by investment firms typically have specialized knowledge in terms of market strategy.

Some wealth managers work as a part of a larger firm linked to the finance industry, while others work as a team member of a business that is comparably small.  Wealth manager titles are uniquely determined based on their employer, meaning some are formally considered financial advisors while others are considered financial consultants.  Clients are sometimes provided with services from one designated wealth manager while others are provided with service provided through several members of a wealth management team.

Wealth Manager Credentials

Be sure to perform your due diligence prior to hiring a wealth manager by checking their credentials.  This process gives you a look at the professional’s specific training, experience, and accolades to determine if they will prove capable of managing your wealth.

A few of the top credentials for professional advisors in this industry are CFP®, short for CERTIFIED FINANCIAL PLANNER Professional, CFA®, short for Chartered Financial Analyst®, CPA, short for Certified Public Accountant, and CDFA®, short for Certified Divorce Financial Analyst (CDFA®).

You may want to search the internet and check with professional certifying organizations to determine if the professional you are considering for wealth management is in good standing, has any complaints, disciplinary actions, or other black marks on their professional record.

At Clariti Wealth Advisors, located in Wilmington, DE, we have been helping our clients build sustainable wealth for over 30 years. We do everything with one result in mind,  and that’s you achieving your life goals. Contact us today and start planning for a brighter tomorrow.

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