Financial planning is more popular among the middle and lower-middle classes, who require financial assistance to make ends meet. Wealth management is preferred by the high-net-worth or highly elite layer of society. These high-net-worth individuals seek to uncover business possibilities that will double or triple their current wealth.
Fremont, CA: Wealth management requires existing wealth as a platform or foundation for accumulating more capital or investment money.
Financial planning involves managing money, whereas wealth management concerns asset preservation and growth. Cash is not a constraint here. Land, property, corporate headquarters, high-end furniture, and so on are considered assets.
Financial planning does not necessitate active engagement by the intended recipients. The advisor handles most of the work when it comes to assessing your finances. However, the beneficiary's active participation in wealth management is vitally required. To preserve or accumulate riches, one must work consistently.
Here are some of the critical phases where financial planning and asset management operations are carried out:
Learning Phase
The process begins with money management. You learn more about investing methods, firms that benefit customers, how to allocate your money wisely, budgeting, and much more. Though you will perform the responsibilities above daily, you must first understand how the financial system functions. There is no need for wealth management in this scenario.
With proper financial planning techniques, you will undoubtedly build assets or create a sizable amount of wealth. At this point, an appropriate wealth management strategy comes into play.
Accumulation Phase
You have now begun implementing each of your investment plans. Again, you simply follow up with a comprehensive financial planning strategy. You may not need wealth management in the beginning, as you're on the verge of becoming wealthy. After that, you utilize intelligent wealth management tactics to conserve or increase your fortune.
Retirement Phase
You have now begun implementing each of your investment plans. Again, you simply follow up with a comprehensive financial planning strategy. You may not need wealth management in the beginning, as you're on the verge of becoming wealthy. After that, you utilize intelligent wealth management tactics to conserve or increase your fortune.
