I Often Hear the Term “Wealth Management.” Is That the Same as Financial Planning?

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The term “wealth management” means different things to different advisors. However, in most cases it encompasses a broad approach to assisting individuals and families to accomplish their financial goals. Specific disciplines within the wealth management process may include financial planning, investment management, risk management, and estate and legacy planning.

Who Needs Financial Planning?
Generally speaking, if a person has finances, they can benefit from financial planning. It is for anyone who is goal-oriented and organized in his or her approach to wealth management.
Financial planning involves a great many areas of technical expertise, so it is difficult for most of us to find the time and education to manage every aspect. Even if you were to become an expert in one area, it’s possible that without professional guidance, planning decisions you make in one area will negate or be in conflict with decisions made in other dimensions of the plan. Ideally, it helps to have advisors involved that know something about each of the areas of planning. This allows for plan integration and the elimination of conflicts.