What Does a Wealth Manager Do?

Many people mistakenly assume that wealth management is primarily about picking stocks. In reality, a strong wealth management team is akin to a financial quarterback, helping clients understand the impact that retirement planning, tax strategies, estate planning, and cashflow management have on one another.

Historically, many advisors functioned as stock jockeys. The role was centered around helping clients buy investments, sell investments, and create their portfolio. While investments will always be a piece of the puzzle, true wealth management has evolved into something far more in depth. At Comprehensive Wealth Management, we believe investments should support a financial plan, not replace one. In this article, we will break down some of the common buzz words within the industry and help you walk away with a better idea of what you are looking for when interviewing a wealth manager.

Financial Advising vs. Financial Planning vs. Wealth Management

Often used interchangeably, the three most common names for service provided to clients in our industry are: Financial Advising, Wealth Management, and Financial Planning. However, the truth is, they are all different. To make matters more confusing, each company has their own definition for what they mean as well. Here’s a bit of a general overview to help you understand the difference.

Financial Advising

This is the broadest title of the above choices. To be fair, it could mean almost anything from: 

• Managing investment accounts
• Building portfolios and picking stocks
• Issuing life insurance policies
• Recommending retirement account allocations

This is important work, but it is often centered primarily around investments.

Financial Planning

Financial planning is the roadmap behind all of it. Here at Comprehensive Wealth Management, it’s an integral part of our process, and the foundation of our relationship with clients. A true, sustainable financial plan should help clients answer questions like: 

• Is my portfolio aligned with my long -term objectives?
• Does my portfolio hold up under stress?
• Can I provide the life I want for my family?
• Are my assets structured in a tax efficient manner?
• Do I have clarity around where my money goes?
• How likely is it that my assets outlive me?
• How reliant is my lifestyle on my current income?
• Would my assets transfer smoothly to my family today?

In many ways, the investments are the tools, and the plan is what gives them a purpose.

Wealth Management

Wealth Management expands beyond basic planning and investments. It looks at the broader picture of a person’s financial life, holistically connecting the disparate parts into a cohesive strategy. Here you will typically focus on areas included but not limited to:

• Financial planning
• Retirement planning
• Tax-efficient investment strategies
• Estate planning coordination (and transition when the time comes)
• Insurance analysis
• Business planning
• College planning
• Investment management
• Cashflow analysis
• Debt management

Our role as wealth managers at CWM is to help clients make smarter decisions across multiple areas that impact one another. A wealth manager will collaborate with other professionals within the broader financial industry such as tax accountants and estate planning attorneys to provide you with the most comprehensive picture of your financial situation.

Financial firms are not created equal

There are three main types of financial firms, and not all financial firms operate the same way. Understanding the difference matters.

Larger Wirehouse Firms: Think Merrill Lynch, Morgan Stanley, or UBS. Advisors here are typically direct employees of a larger bank, or brokerage company. They often have access to name brand resources, recognizable branding, and a structured system for success; operating within company platforms, product lineups, and corporate guidelines.

Franchise or Affiliated Models: Some advisors choose to operate under the umbrella of a larger company (such as those listed above) but effectively run their own localized practice. It’s a great way to have more flexibility than a direct employee, while still having access to the parent company’s systems, products, and compliance structure.

Independent Firms: These are the firms that are not beholden to a parent company. They have no product shelves, or sales quotas. At Comprehensive Wealth Management, we are a Registered Independent Advisor, known within the industry as an RIA. As a fiduciary, we are legally required to act in your best interest. As an independent advisor, we have the freedom to recommend whatever tools, strategies, and products that we genuinely believe fit your needs best. All based and recommended on the financial plan we build together.

What People Often Need Most

Ironically, most people do not simply need better investments. They need clarity. They need someone who can help connect all the moving pieces of their financial life and simplify those complex decisions. Markets matter and so do investments. In fact, 90% of the meetings I have with clients touch on both those topics. That said, more of the meeting is around long-term planning, family goals, risk management, and distribution planning. Sound wealth management is not about chasing the hottest stock or trying to predict the market every week, it’s about making smart, informed financial decisions over decades - not days. In today’s world, where financial decisions can often feel like gambling in an ever increasingly complex environment, that guidance has never been more valuable.

If you’re looking for more than just investment management or would like a second opinion on your financial situation, please give Comprehensive Wealth Management a call at (425) 778-6160 to schedule a complimentary 30-minute call with a CWM advisor.