financialtreat – will explain about How Important Is wealth managment? You Can Know Only in this Review! which you will find in the following article. let’s look at this article carefully!
Wealth management is an advanced investment advisory that specialist in financial services and financial planning”. Or if we freely translate it into Indonesian, it is investment advisory services in finance and also financial planning.
So, as we explained earlier, wealth management is a family financial management. Of course, this can be done by every individual. However, to do it yourself complete financial arrangements with various aspects of consideration, ranging from opportunities and possible risks, is not an easy thing to do.
How Important Is Wealth Management? You Can Know Only in this Review!
For this reason, most people generally need financial managers who already have sufficient knowledge regarding the various types of financial investments that are already available.
In addition, you must also understand how a global economic development is likely to have an impact on investment instruments and other factors that can have an impact on the value of your wealth.
Well, in the end, wealth management has developed into a financial planner service business. So the understanding of wealth management also develops. From what was initially only the management of the value of wealth that was carried out independently, it became financial management carried out by an institution or entity.
For this reason, the current main understanding of wealth management is financial and wealth management services that do not only focus on investment, but also take care of various matters related to personal finance. So, simply wealth management is a personal finance manager.
This management will assist each client in achieving his financial goals. Because if a client performs wealth management services from an agency or institution, then you will be asked to fill out an inquiry form related to financial planning.
The information must be stated honestly, such as the amount of assets currently owned, the amount of debt, wife, children, income, insurance, risk profile, expenses, goals, and other things must be stated honestly.
When Was Wealth Management Born?
The term wealth management began to be widely used in the early 2000s. However, in fact his presence had existed long before that year. For example, in big cities such as London, Paris, and Amsterdam, holistic financial management activities have been known since the 17th and 18th centuries.
This development certainly cannot be separated from the financial center that occurred at that time. In addition, private bankers also provide various financial services for each family member who wants to trade internationally.
Some of the types of financial services they provide are depositing deposits, providing loans and also providing foreign currency. This activity is carri out only to provide comprehensive financial services to every member of the kingdom.
After becoming famous in London, this service move to the United States in the 19th and 20th centuries with the Wall Street landmark there.
Types of Wealth Management Services
Wealth management is very closely relate to the nuances of services for the upper class who have thick pockets. Even so, wealth management is not only about investment, but there are also other services that can provide a comfortable life.
Because wealth management often provides all the services neede by those who have a lot of money, the term What Lu Minta Gue Ada (Palugada) appears as a play on wealth management.
so, in fact they are able to provide services in traditional to sophisticate, from financial matters to lifestyle, as well as from business to spiritual matters.
Wealth Management Service Provider
Generally, these services are offere by banks. Several other parties that also provide this service are Asset management, insurance, private banking, brokerage, investment banking, independent financial advisors and even accounting firms.
Each of these banks has its own services, such as ABC Amro Indonesia with Van Gogh Preferre Banking, which is specifically for people with high incomes with a minimum deposit balance of IDR 500 million. Then Bank Syariah Mandiri which has BSM Priority with a minimum balance of IDR 250 million.
Even if there are institutions that claim to have these services, but only focus on offering insurance products or deposit products, or only offering mutual fund products, we can confirm that they are not compatible wealth management service providers.
Financial or banking institutions that do have a comprehensive wealth management program are those that have complete services, such as investments in financial or non-financial products.
They will also provide advice regarding real types of investments such as prospective businesses, houses, gold, etc. In fact, they are not fanatical about their own products, because they will also be open to other institutions that are more suite to the conditions of their clients.
Well, before choosing a bank or financial institution in which wealth management is provided, then you should be able to pay attention to the following. Go directly to the bank or financial institution that offers these services.
Also ask all the services they can provide. Pay attention to who is in front of you when you visit the service provider institution or bank, whether the person entruste is a competent person or not.
A big name is not a guarantee that you can get people who are competent and have extensive experience. Ask how much you have to spend when using the service. Then, calculate the costs you have to spend and what benefits you can get.
Wealth Management Business Structure
The Wealth management or wealth management can work as part of a large business or small business relate to the financial industry. Wealth management can also function under different positions, including financial consultant or financial advisor, depending on the field of business.
Clients will be able to receive every service from a single appointe consultant or have access to a member of the Wealth management team.
Wealth Management Strategy
Wealth management will start by developing a strategy plan and also maintaining and increasing the value of the client’s wealth base on the financial condition, goals, and also the comfort level of the client.
When the initial plan has been develope, the manager can later hold regular meetings with the client or to update objectives, review, and also rebalance the financial portfolio and also investigate whether additional services are neede or not.
Their ultimate goal is of course to provide financial services to clients throughout their lifetime.
What is the Difference Between Wealth and Asset Management?
Both, asset and wealth management, are use while describing the techniques of organizing evolving investments and other financial resources. The main objective of wealth management and asset management is to increase wealth, expand investment income and increase investment income.
Asset management is broader and is identifie with individual or corporate investments and assets, which incorporate bonds, investors’ real estate, stocks, and other ancillary assets.
At the same time, wealth management is much broader in the financial organizing services provide to high net worth people, for example, retirement planning, investment management, tax planning, real estate management, etc. Wealth management and asset management are similar to each other.
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The Wealth management ideas center on creating attractive methods for family wealth. It manages all individual life situations, such as budget planning, tax management, retirement planning, portfolio management, property planning, etc.
The asset management consulting center deals with asset investments made by portfolio individuals. Assets may be company value, permanent income, property, and worldwide investments.
Asset managers assess various investments and make suggestions for individual portfolios on the basis of their objectives and resilience to harm. However, sometimes, organizations that offer asset management services are delegates who earn commissions on the investment products they trade.
From the explanation above, we can find out what it is about wealth management, starting from the definition, the person who handles it, and the difference between it and asset management. We can also conclude the importance of wealth management. What about your opinion?