What Is Wealth Management?

Naturally, we created a mathematical formula to define wealth management. Here’s the formula:

WM = IC + AP + RM

Wealth Management means different things to different people. But to us, wealth management, the way we think of it starts with Investment Consulting (IC). And really, Investment Consulting deals with the number one concern that our successful clients have who want to make smart decisions about their money. Now the challenge for everyone is that 100% of financial advisors say they do this and obviously some do it better than others.

In addition, we think there’s another key element called (AP) Advanced Planning. In a landmark study from CEG Worldwide[1], they surveyed financial advisors and found that only 6.6% of advisors are Wealth Managers and do Advanced Planning. So let me define Advanced Planning.

AP = WE + WT + WP + CG.

Wealth Enhancement (WE) deals with the second biggest concern which is mitigating taxes. Remember, the first major concern of investors is investment consulting. The second is mitigating taxes. The third biggest concern is Wealth Transfer (WT). Wealth Transfer is thinking about taking care of the heirs. Plus we deal with the fourth biggest concern called Wealth Protection (WP) where we focus on making sure your assets are not unjustly taken. And then Charitable Giving (CG). Charitable Giving deals with the fifth major concern of successful families. They want to make sure, for the causes they care about, they can magnify those gifts.

Lastly we look at a very important part that we call Relationship Management (RM). Now the way we look at relationship management is client relationship management and our ongoing service to you, plus our process and formula to hold your plan accountable. It also includes the professional strategic partner network we have partnered with to help our clients. This includes CPAs, Attorneys, Insurance Professionals, Bankers, Realtors, and many, many more.

What we strive to be is your Personal CFO to help you make smart decisions with your money in all of these areas.

So to recap, Wealth Management addresses the five major concerns of investors:

  1. Investment Consulting
  2. Mitigating Taxes
  3. Transferring Money to Heirs
  4. Protecting Assets from Being Unjustly Taken
  5. Magnifying Charitable Giving