Wealth Management is classified as an advanced type of financial planning that provides High net worth individuals and families with private banking, estate planning, asset management, legal resources, and investment management, with the goal of sustaining and growing long-term wealth. The usefulness of and the need for wealth management is inherent in its name. Whereas financial planning can be helpful for individuals who have accumulated wealth or are just starting to accumulate wealth, you must already have accumulated a significant amount wealth for the wealth management process to be effective. Categories: Possible copyright violations ... In private banking, a high-net-worth individual (HNWI) is a person with a high net worth. ... Private banking is done by major institutional banks known as private banks, which offer financial services to private individuals. ... Estate planning is the process of accumulating and disposing of an estate to maximize the goals of the estate owner. ... Asset management is the method that a company uses to track fixed assets, for example factory equipment, desks and chairs, computers, even buildings. ... Investment management is the professional management of various securities (shares, bonds etc) assets (e. ...

Examples of Wealth Management include independent advisors like FFR [2] or large corporate entities like Citibank's Citigold and other extensions of retail banking services designed to focus on High-Net Worth retail customers. Such customers would be called internally in a bank 'mass affluent' or 'upper retail' clients because of their Net worth, the number of potential products they own from the bank, their Assets under management and other methods of segmentation. The banks create separate branches, services and other 'benefits' to retain or attract these customers who are typically more profitable than other retail banking customers. However, wealth management clients are not Private Banking clients because they simply do not have the Net Worth or Assets under management to justify the level of banking services that Private Banks provide. Citigold is the wealth management Division of Citibank, part of Citigroup. ... Net worth (sometimes net assets) is the total assets minus total liabilities of an individual or company. ... Assets under management (AUM) is a term used by financial services companies in the mutual fund and money management or investment management business to guage how much money they are managing. ... Private banking is done by major institutional banks known as private banks, which offer financial services to private individuals. ... Assets under management (AUM) is a term used by financial services companies in the mutual fund and money management or investment management business to guage how much money they are managing. ...

Background

Wealth Management is a term that originated in the 1990s in the US with the Broker Dealers, Banks, and Insurance Companies. Wealth Management has generally evolved from high net worth financial consulting for persons who are top clients of any firm, to a high level form of private banking that provides various types of investment, insurance and bank products and services. With the repeal of the Glass-Steagall Act in 1999, financial firms were able to provide all three of the above services from the same offices. Two separate United States laws are known as the Glass-Steagall Act. ...

With the emergence of wealth management as a career opportunity as well as a professional service in high demand, educational programs such as the American Academy of Financial Management CWM Certified & Chartered Wealth Manager program are providing customized wealth management executive training to corporations and individuals alike. As wealth management serves a much more affluent community, many Chartered Financial Analysts, Certified Public Accountants, Certified Wealth Managers, government-licensed lawyers, and sometimes an insurance professional who is a Certified Financial Planners are involved in this type of high-net-worth consulting. Keep in mind that only Lawyers and CPAs have a government license to provide legal or tax advice on complex wealth management, estate planning, tax law, retirement or other legal issues such as business succession or divorce.^{[citation needed]} As a note, an RIA (registered investment advisor) with the SEC or a person holding an RIA license can charge fees for investment advice. The American Academy of Financial Management, or AAFM as it is known, is a professional association dedicated to the finance sector and finance professionals. ... The current version of the article or section reads like an advertisement. ... Chartered Financial Analyst (CFA) is a professional designation offered by the CFA Institute (formerly known as AIMR) to financial analysts who complete a series of three examinations and work for at least four years in the investment decision making process. ... Certified Accountant redirects here. ... The American Academy of Financial Management, or AAFM as it is known, is a professional association dedicated to the finance sector and finance professionals. ... The Certified Financial Planner (CFP®) designation is a certification mark for financial planners conferred by the Certified Financial Planner Board of Standards. ... For information on the type of fish called Lawyer, see the article on Burbot. ... Certified Accountant redirects here. ... SEC redirects here. ...

Persons engaged in wealth management usually work for investment banks, brokerage firms, law firms, accounting firms, consumer banks, trust departments, or investment and portfolio management firms. Smaller firms such as Registered Investment Advisors may also provide a wide array of family office services. Investment banks help companies and governments (or their agencies) raise money by issuing and selling securities in the capital markets (both equity and debt). ... Registered Investment Advisor (RIA) is a designation obtainable by an individual who has registered themselves with the SEC or State (where the primary business is situated or multiple States in some cases) as managing the investments of others. ...

Client Segmentation and Management

Target clients of Wealth Management are typically known as "High Net Worth Individuals" or "Mass Affluent" retail banking customers. Many banks define these target clients as having a minimum Net Worth or Asset Base which make them attractive customers for retail banks. Target clients in this space typically have a net worth (or positive asset base) of somewhere from between US$150,000 and US$1,000,000 ($1 million)^[1]. Whereas Private Banking clients typically have a net worth of greater than US$1,000,000 but increasingly expectations are around US$5,000,000 ($5 million).

Services

Services typically include:

• Portfolio Management and Portfolio Rebalancing
• Investment Management and Strategies
• Trust and Estate Management
• Private Banking and Financing
• Tax Advice
• Family Office Structures

Products

Products could include the following:

• Stocks and Stock Trading
• Equity Linked Investments
• Structure Savings Products
• Structured Investment Products and Derivatives
• Foreign Exchange
• Mutual Funds and Unit Trusts
• Property Management and Investments
• Alternative Investments including:
  • Art
  • Wine
  • Precious Metals
  • Property

This article or section includes a list of references or external links, but its sources remain unclear because it lacks in-text citations. You can improve this article by introducing more precise citations.

Image File history File links This is a lossless scalable vector image. ...

References

1. ^ (2) Deloitte Study: Opportunity Knocks [1]

External links

• Wealth Management Department of Treasury Handbook
• Federal Reserve Comments
• Dictionary - Wealth Management
• Opportunity Knocks - Unlocking the Wealth Management Potential in Asia, Deloitte & Touche - Financial Services [3]