Wealth and asset management can do a lot to help you achieve your financial goals, offering you stability and freedom especially in your retirement years. The two terms are often used interchangeably but they are actually different. Read on as we explain what these services are and how they differ from one another.

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

Wealth management is a high-level professional service that combines investment and financial advice, tax and accounting services, retirement or estate planning and legal assistance to help you achieve personal goals. Asset management, on the other hand, involves a financial services company, usually an investment bank, that handles cash and securities for a client.

Individuals with high net worth can benefit from the holistic approach of wealth management as it combines various financial products to manage a client’s needs today and in the future. Aside from individuals with high net worth, asset management is also ideal for corporations, government entities and financial intermediaries.

Think of wealth management as a general field under which asset management can be found.

Why They Are Important

While wealth and asset management are mainly geared toward accounts with high net worth, the idea behind the two can actually be applied to all income levels. In other words, whatever kind of wealth or assets you might have, properly managing your resources is key to not just maintaining them but growing them as well.

Money is meant to be spent, but it has to be done so properly to promote financial stability and freedom. Wealth and asset management can help you with that. Your wealth or asset management provider will seek to thoroughly understanding your goals and resources, determining the best course of action to yield the results you want.

Now that we’ve established that wealth and asset management are important, it’s time to talk about how to maximize them in Part 2 of this blog series.