We all strive for wealth. Whether it’s wealth of knowledge, wealth of spirit, or financial wealth. But once we achieve our goals, sometimes we need help managing what we’ve acquired. In the scope of finances, this often means finding a financial advisor to provide guidance and manage your accounts. There are many types of advisors, however, and choosing the right fit for your needs is important.

When it comes to managing your financial portfolio, there are two approaches: asset management and wealth management. Each focuses on different aspects of wealth and offers unique services. In this article, we’ll explain what asset and wealth management each entails, the certifications financial professionals should hold to offer these services, and how our unique approach helps clients. Plus, we’ll sum it all up in a handy infographic.

What Is Asset and Wealth Management?

Senior couple going over finances and using  a laptop.

Asset Management

Asset management addresses only a segment of  a person’s assets— typically financial investments like stocks and bonds.  

Any person with financial assets can benefit from asset management. It allows you to outsource the hassle of managing complex investments to a professional who understands the industry. You can give your financial advisor as much or as little autonomy as you’re comfortable with, and they’ll teach you about their strategies as they make decisions.

Wealth Management

Wealth management addresses much more, including all of your assets – both financial and real property. An advisor providing this service might help balance your business assets, financial investments, or real property assets like metals or real estate.  The goal is to increase your total value through strategic decisions.

Wealth management also goes one step further. In addition to monitoring your financial and real property assets, wealth managers also look strategically at the liability side of the balance sheet. Liabilities include all forms of outstanding balances, such as:

  • Loans
  • Mortgages
  • Deferred revenues
  • Warranties

A wealth management advisor guides their clients based on the full picture of their finances, assets and liabilities. This information allows them to assist with things like estate planning, continuity planning, or succession planning. They assess your financial health and help you create a plan to reach your long-term goals, as well as manage the asset adjustments along the way.

Typically, wealth management focuses more on high net worth individuals that have a wide array of assets. These people typically require more complex guidance and management when making strategic financial decisions.

At Clear Money Path, we provide comprehensive wealth management services.  Although our focus is on effectively managing stocks and bonds portfolios, we also provide guidance regarding any investments you might have. This allows us to provide strategic recommendations to your advantage in order to grow your assets in the most effective way.

As you can see, asset managers and wealth managers have some similarities. To help you choose a qualified professional, there are a few licensures and certifications to look for.

Professional Qualifications

Almost all financial professionals require some type of certification to perform services for consumers, financial advisors included. Every financial advisor must pass the Series 65 licensing exam to become an Investment Advisor Representative before they can provide financial guidance to clients. 

Advisors might also hold titles such as Certified Financial Planner or Certified Investment Management Analyst. These are extra certifications that demonstrate special skills or a unique focus of their business. Both of these certifications lend themselves well to wealth management.

The right professional for you will address your needs. Every professional with these licenses and certifications are qualified to help with both asset and wealth management but will take their own unique approach. Find an advisor who focuses on the areas you need most, whether that’s investment management, financial planning, or overall guidance.

Asset Management vs. Wealth Management Infographic Clear Money Path

The Clear Money Path Approach

As a Registered Investment Advisor, we allow our role as a fiduciary to guide our asset and wealth management services. When clients walk through our doors, we don’t point them to boiler plate stocks and bonds portfolios. We recommend a unique investment approach, complete with real property assets, to create a diversified portfolio.

We’re also one of the few firms that has a financial advisor who’s experienced in managing investment portfolios. This means our clients have access to a private money manager they can access any time. We assist with both planning and direct management, which many big firms won’t offer because they choose to separate the  two processes. 

In our asset management services, we help clients manage their portfolios and plan to reach their financial goals. Our wealth management services are focused on estate planning, succession planning, and strategic giving. We strive to provide our clients with not only comprehensive services but also valuable advice and guidance.

Finding the right type of advisor for your situation might feel difficult. Assess your needs and the services you’re looking for, then compare the offerings of  an asset manager vs a wealth manager. Or you can schedule a free consultation with us, and we’ll help you assess your situation and plan the path to your goals.

Information presented does not involve the rendering of personalized investment advice, but is limited to the dissemination of general information on products and services. This information should not be construed as an offer to buy or sell, or a solicitation of any offer to buy or sell the securities mentioned herein.

Information presented is believed to be factual and up-to-date and was obtained from sources known to be reliable. It should not be regarded as a complete analysis of the subjects discussed.  

All expressions of opinion reflect the judgment of the author as of the date of presentation and are subject to change.Clear Money Path is registered as an investment adviser with the state of Missouri. The firm only transacts business in states where it is properly registered, or is excluded or exempted from registration requirements.