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Asset Management Vs. Wealth Management: Which is Right for you?

by Caldwell Trust

There are various ways that individuals can begin to manage their money better. Two financial services that are offered today are asset and wealth management. While both are essential to building a more financially secure future, they have two different important functions that individuals should be aware of.

For this reason, we're going to discuss what asset and wealth management is, how they differ from one another, and which money management option is best for you. 

What is Asset Management? 

As the name suggests, asset management is a process that involves the management of your assets. Assets are all of your financial holdings such as investment accounts, cash and cash equivalents, and property. 

However, an asset manager will generally focus on your investments. Your investments might include stocks, bonds, mutual funds, or similar. 

The goal of your asset manager is to help you grow your wealth by determining which investments are best suited for your financial situation. Essentially, your manager will help you by determining what percentage of your portfolio should be growth products and what percentage should be fixed income products. 

By doing this, individuals can minimize their risks that result in a loss of revenue and increase the earning potential through the growth of their investment accounts. 

Main Benefits 

  • Asset allocation for investment growth 
  • Risk assessment 
  • Investment monitoring 
  • Tax minimizing strategies. 

What is Wealth Management? 

Wealth management is considered the highest level of financial planning services. As such, wealth management is typically useful for individuals who already have a healthy financial portfolio. 

Ultimately, it is an investment advisory service that provides more of a broad view of financial disciplines and services. A wealth advisor will develop a strategy to help you manage your assets. But they will also provide you with comprehensive financial advice and help them with complex financial issues. 

A wealth manager may provide additional services such as financial and investment advice, legal or estate planning, and tax services. 

Main Benefits 

  • Improved retirement planning 
  • Minimizes financial stress
  • Develops a better financial plan for individuals
  • Personalized services 

Difference Between Asset and Wealth Management 

The main difference between asset and wealth management is the area of focus. Asset managers are primarily focused on taking care of their client's investments. Wealth managers, and wealth management take a broader look at their clients' financial portfolios to help them maximize their funds. 

Another key difference between the two is the end result that individuals can expect. Asset managers are focused on producing tangible returns from an individual's investment account. A wealth manager is focused on the preservation of a client's finances through broader financial management. 


Which is Right for you? 

Both asset and wealth management are great ways to manage your money better. But which one you choose will depend on your financial background and current goals. 

With that said, if you're just getting started with investments or only want help with managing your investment accounts, asset management is the best option for you. An asset manager will help you tap into the best investment options that meet your needs and help you grow your portfolio. 

However, if you need more comprehensive help with all of your financial planning needs, it's best to consider wealth management. Keep in mind, wealth management services usually require steep account minimums. This means that you're going to need to have a good amount of cash flow to start working with a wealth advisor. 

Money management is the first step to building a more secure future. If you're interested in wealth management solutions or traditional trust services, contact us today to see how Caldwell Trust can empower you through wealth security. 

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