Wealth management is the process of creating and implementing a plan to help people manage their financial resources in order to achieve their long-term financial goals. This process generally includes identifying the individual’s goals, evaluating their current situation, developing a plan to reach those goals, and implementation and monitoring of that plan.
The term wealth management can be used in different ways, depending on the context. In the text analytics industry, Wealth Management refers specifically to using natural language processing (NLP) and other text analysis technologies to help financial institutions better understand and serve their clients. However, outside of the text analytics industry, the term wealth management may refer more broadly to any type of financial planning or advice given to individuals or families.
Wealth management is similar to, but distinct from, other financial planning terms such as asset management, portfolio management, and investment management. Asset management is the process of selecting and managing investments in order to meet a specific set of goals. Portfolio management is the process of creating and maintaining a diversified portfolio of investments that meets a specific set of goals. Investment management is the process of making decisions about how to invest money in order to achieve a specific financial goal.
While wealth management may encompass all of these activities, it typically goes beyond them to also include aspects like estate planning, tax planning, and philanthropic planning. For this reason, wealth management is often considered to be a more comprehensive approach to financial planning than any of these other terms.
At its core, wealth management is about helping people make the most of their financial resources so that they can achieve their goals and live the life they want. If you are looking for help with your finances, a wealth management professional can work with you to create a customized plan that meets your unique needs.