Asset vs. Wealth Management — What’s the Difference?

 

Deciding to take managing your money more seriously remains one of the most important decisions someone can make. Having a dedicated professional helping you manage your money can help ensure your wealth will last you well into your golden years. However, when you’re first starting to find a financial planning service, two possible avenues may catch your attention and, at first glance, appear the same — wealth management and asset management. 

However, in the financial world, these two services are distinctly different services that each serve a particular purpose. Knowing which one serves you best for your financial future is critical for your retirement. The biggest difference between wealth and asset management comes down to the scope of the services. 

Defining Wealth Management

Financial planners specializing in wealth management take a broader view of your financial situation. Through a variety of financial services, your financial advisor will help you maximize your current wealth and find ways to ensure it lasts well into the future. A wealth management firm can certainly help with asset management services, but they should be providing additional services as well.

Some of the wealth management services that Stolz & Associates, P.S., provides our clients to help with their financial situation include:

• Asset Protection and Risk Management

• Estate Planning

• Investment Management

• Tax Planning

• Trust Management

Having an experienced wealth management firm on your side can help you get a better handle on your money when you start your retirement planning process. This holistic approach helps assess your entire financial situation and helps protect your wealth for the long run. 

Defining Asset Management

While wealth management takes a broader approach to safeguarding your money for your retirement years, asset management takes a direct approach to grow your current assets. They may utilize tools such as stocks, bonds, mutual funds, and additional investments that require a more hands-on approach to grow, but the scope of this service is limited to your investments and doesn’t include the rest of your wealth story or your personal financial goals.

A good wealth manager should help develop investment strategies that aim to grow your investment portfolio in accordance with your specific goals. These strategies can be as conservative or aggressive as you’re comfortable with; however, with the market’s volatility, you’ll have to deal with the ebb and flow of the stock market. 

Which Service Is Right for Me?

Planning for your retirement presents a nuanced challenge for you and your financial advisors. High-Net-Worth individuals and families typically benefit from a wealth manager who takes a more holistic view of their financial situation. They need to have the capability to navigate the challenges that face your finances throughout the lead-up to your retirement and beyond. Asset management may be one of the tools they use to accomplish this for you, but it should not be the only one.

A proven wealth management service can provide you with the array of services you need to examine every aspect of your financial situation and ensure it’s ready to support you throughout your retirement. A proven wealth management service can help you prepare for your retirement by examining everything from your estate, investments, protecting your current assets, and planning for the unique tax challenges that face you in retirement. 

Knowing what you want out of a financial service helps you identify which services match your short-term and long-term goals and gives you an accurate financial picture. A wealth advisor can help you achieve your financial goals and ensure you’re ready for your upcoming retirement. 

Trust Stolz & Associates, P.S. With Your Wealth Management Needs

When deciding between asset management and wealth management services, having a clear idea of your needs is crucial. When you choose a wealth management-centric approach, Stolz & Associates, P.S. is here to help you reach your financial goals. We take a broad view of your financial situation and give you detailed and personalized recommendations to help you achieve your financial goals and ensure a comfortable retirement. 

Schedule your first consultation with a member of our team and learn more about how our wealth management services can help prepare you for your retirement.