Wealth management is the highest level of financial planning services.

Wealth
management generally includes comprehensive investment management alongside
financial advice, tax guidance, estate planning and even legal assistance.

The type of service offered by a wealth management firm is best suited to affluent
clients. But while you may not require wealth management now, your needs are
likely to change over time. At some point, it may be time to look into wealth
management.

Wealth management: What is it?

Wealth management is the most advanced form of investment advisor services.
A wealth advisor typically creates a specially tailored investment strategy and plan
for their clients to help them manage their assets.
Wealth managers generally aim their services at the highly affluent and may have
expertise in the types of financial questions that affect the ultrawealthy, such as how
to avoid the estate tax. They often coordinate services among different experts, such
as working with a lawyer or an accountant on your behalf.

How much money do you need for wealth

management?
In short: A lot. Wealth management services often require steep account minimums.
For example, Fidelity’s “private wealth management service,” where you have an
entire team of financial professionals working on your behalf, requires at least $2
million invested through Fidelity Wealth Services and $10 million or more in total
investable assets.

Fidelity also offers a simpler “wealth management” service, where you work with an
individual advisor and requires a $250,000 account minimum.

Vanguard, another online brokerage, offers a range of financial advice services; the
one it describes as “wealth management” requires a $5 million minimum.

» View our list of the best financial advisors

Is a wealth manager worth it?

A wealth manager should be able to assist with all of your financial-planning needs,
up to and including, for example, managing the tax ramifications of business income
and setting up a donor-advised fund for your charitable contributions.

Financial planners may offer similar services to wealth managers, but often they’ll let
you purchase services on an “a la carte” basis. For example, if all you want is help
figuring out how you’ll meet your retirement income needs, some financial planners
will work with you to create a retirement income plan, and you pay solely for that
service.
If you need assistance estate planning, specialized tax help or investing advice, it
may be worth getting professional help now to protect and preserve your assets
later.

» Learn more about how to choose a financial advisor

Wealth management vs. portfolio management

Wealth management offers more complete financial planning than portfolio
management. It includes comprehensive guidance on a client’s financial situation,
including investment management, estate and tax planning, accounting, retirement
planning and even legal guidance in some cases.

Portfolio management refers to a service or person who crafts an investing strategy

on behalf of a client. Portfolio management involves picking investments that
minimize risk and maximize returns, but typically does not include other financial
planning services.

Wealth management alternative: online financial

planning services
If those wealth-management minimums are more than you bargained for, then you
probably don’t need wealth management. While some financial planners also focus
on ultrawealthy clients, there’s a growing cadre of financial advisors who work with
both affluent and middle-income folks. Some of these advisors operate online.

Online financial advisors offer portfolio management (also called investment

management) and in-depth financial planning, including access to a human financial
planner. Often, these services are delivered entirely over the phone or by video
conference. While you may not meet in person, you’ll work directly with a financial
advisor who can help you build a holistic financial plan or reach a specific goal.
The services offered vary by provider. Facet Wealth, for example, offers unlimited
access to a dedicated advisor who is a certified financial planner (CFP). You’ll pay a
flat annual fee, which varies depending on the complexity of your financial needs,
and the service includes investment management.