Wealth management is an investment advisory discipline that incorporates financial planning, investment portfolio management and a number of aggregated

financial services. High Net Worth Individuals (HNWIs), small business owners and families who desire the assistance of a credentialed financial advisory specialist call upon wealth managers to coordinate retail banking, estate planning, legal resources, tax professionals and investment management. Wealth managers can be an independent Certified Financial Planner, MBAs, Chartered Strategic Wealth Professional,[1] CFA Charterholders or any credentialed professional money manager who works to enhance the income, growth and tax favored treatment of long-term investors. Wealth management is often referred to as a high-level form of private banking for the especially affluent. One must already have accumulated a significant amount of wealth for wealth management strategies to be effective.

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1 Private wealth management 2 References 3 Further reading 4 External links

[edit] Private wealth management
This section does not cite any references or sources. Please help improve this section by adding citations to reliable sources. Unsourced material may be challenged and removed. (August 2007) Private Wealth Management (PWM) is the term generally used to describe highly customized and sophisticated investment management and financial planning services delivered to high net worth investors. Generally, this includes advice on the use of trusts and other estate planning vehicles, business succession or stock option planning, and the use of hedging derivatives for large blocks of stock. Traditionally, the wealthiest retail clients of investment firms demanded a greater level of service, product offering and sales personnel than were received by the average clients. With an increase in the number of affluent investors in recent years, there has been an increasing demand for sophisticated financial solutions and expertise throughout the world.

Morgan Stanley and Merrill Lynch) have "tiered" their platforms – with separate branch systems and advisor training programs. Wealth Management education for private investors with substantial wealth is offered by several leading universities. My Wealth Inc. to distinguish themselves from mass market offerings. a job for which he has had no training. Since 1999. Within a few years a new business model emerged – Family Office Exchange in 1990. "The newly liquid entrepreneur has suddenly become the CEO of a new company. These transfers are subject to laws and regulations that vary from locality to locality and therefore the strategies available to address this situation vary. The first such program was offered by the American Academy of Financial Management who offers the CWM Chartered Wealth Manager Program and then the Wharton School of the University of Pennsylvania. but since has spread throughout the financial services industry. IPI's founder Charlotte Beyer describes the challenge. In the late 1980s private banks and brokerage firms began to offer seminars and client events designed to showcase the expertise and capabilities of the sponsoring firm. "Private Wealth Management" is the retail division focused on serving clients with greater than $20 million in investment assets.. • • Time horizons are different. and CCC Alliance in 1995. Investors are skeptical of sponsored events because they find it harder to trust that they are getting the full and honest picture of options available to them. The first online community was created by IPI in 1998.The CFA Institute curriculum on "Private Wealth Management" indicates that there are two primary factors that distinguish the issues facing individual investors from those of institutions. but with a lower degree of customization and delivered to mass affluent clients. and today these online groups have proliferated with specialty investor peer groups growing in numbers despite the 2008 bear market. Certain larger firms (UBS. distinguishing Private Wealth Management from "Wealth Management"." Several membership groups often have online communities of investors as well. . At Morgan Stanley. Portfolio management techniques that provide individuals with after tax returns that meet their objectives are necessarily going to be specific to these tax structures. These new entities were devoted to educating the ultra wealthy investor and providing a network of peers for the ultra high net worth individual and their families.[3] the Institute for Private Investors in 1991. Individuals are more likely to face a variety of taxes on investment returns that vary from locality to locality. The term was first used by the elite retail (or "Private Client") divisions of firms such as Goldman Sachs or Morgan Stanley (before the Dean Witter Reynolds merger). Individuals face a finite life as compared to the potentially infinite life of institutions. This fact requires strategies for transferring assets at the end of an individual’s life. with the latter term used to describe the same type of services. Their growth since the 1990s indicates a market eager to become more informed about private wealth management.[2] while "Global Wealth Management" focuses on accounts smaller than $10 million.

diversification. independent financial advisers or multi-licensed portfolio managers whose services are designed to focus on high-net worth clients. For individual investors. Banks and brokerage firms use advisory talent pools to aggregate these same services. risk tolerances have been tested.”[9] Today wealth management advisors must have access to an objective content repository. 'stay the course'. Moreover.[5] The five-day program is offered twice a year and is a continuing partnership with the Institute for Private Investors. access. 'invest for the long term'. for a generation. . who.over 5000 people from over 100 countries have completed the AAFM CWM Wealth Manager program. from objective sources. In 2009. and correlation. and when things get tough. and their affiliations with tax and legal specialists. regarding all products and services owned by their clients to answer inquiries regarding performance and degree of risk-at the client. Independent wealth managers use their experience in estate planning. portfolio and individual security levels. and fundamental truisms have been questioned.[6] Both The University of Chicago and Stanford University also offer 5 day programs."[8] For this reason wealth managers must be prepared to respond to a greater need by clients to understand. 520 investors from 29 countries have completed the course. risk management. to manage the diverse holdings of high net worth clients. This repository must contain a current and readily available profile of the clients holdings. investment assumptions have been overturned. [4] At Wharton. The events of 2008 in the financial markets caused investors to address concerns within their portfolios. advisors must have sufficient information. "The past 18 months have challenged traditional thinking about investing and asset allocation. have adhered to the core principles of asset allocation and earned their keep by preaching the mantras of 'buy and hold'.[7] Large banks and large brokerage houses create segmentation marketing-strategies to sell both proprietary and non-proprietary products and services to investors designated as potential high net-worth clients. and communicate with advisers regarding their current relationship as well as the products and services that may satisfy future needs. "This state of affairs poses a dilemma for wealth managers. Columbia University offered a three day program on value investing designed for high net investors Wealth management can be provided by large corporate entities.

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