There is a huge difference between financial experts and wealth managers. This is not as obvious as you might think because the functions that these professionals perform are very different from that of wealth advisers or wealth managers. But in general, there are some important differences that could be quite clear. For example, financial experts are usually expected to be experts on various financial topics such as investing in different kinds of bonds, stocks, commodities, etc. They are supposed to have expert knowledge about the latest financial tools and techniques used by investors.
On the other hand, wealth advisers are people who are trained to help manage money. They are expected to have a comprehensive understanding of investments, financial markets, etc. They are also supposed to be experts on various aspects of planning and budgeting. Financial advisors are paid a fee for their advice and services. Usually, this type of financial advisor can be self-employed but it is also not uncommon for him to work for a company as an employee and therefore not pay income tax. In short, these are two completely different professions and if you are going to start off as a financial advisor, you need to make sure that your training program adequately prepares you for this.
The second major difference between these two professionals is their level of involvement on the behalf of their clients. Financial advisors handle the most sensitive financial information of clients while wealth advisers spend their time advising their clients about investments, financial planning, etc. advisors do not directly get involved in the money market and typically only advise their clients once they have fully determined to go ahead with a particular investment. This is because the majority of financial advisors to get their commission from financial institutions where they help people invest.
On the other hand, wealth managers are the opposite. They do not get any commission for their advice and do not help their clients invest. They instead handle everything from asset management to estate planning and generally provide only advice to their clients. In short, wealth managers are business managers whereas financial advisors are not business managers but primarily help people manage their financial assets. Obviously, if you want to be a successful wealth manager then you would have to attend a formal business management course whereas you could still learn about investing and asset management by taking up a related profession such as taxation or business management degree.
The third difference is the manner in which fees are charged by both financial advisors and wealth advisers. Typically, financial advisors are paid on a performance fee basis while wealth advisers are paid on a fee for service basis. While there is no hard and fast rule regarding this, it is usually advisable for clients to seek out an advisor who charges on a performance fee rather than a fee for service basis. This will ensure that you get your money’s worth since the advisor will only charge you if he or she succeeds in getting you the maximum possible return. On the other hand, if you choose to pay for your services in a commission-based manner, you will only get your money back after you have made a certain amount of investment or purchase of assets.
Probably the most important difference between financial managers and wealth advisers is the manner in which advice is given. While most wealth managers like to keep things simple and recommend conservative investments, financial advisers are more interested in advising their client to diversify their investments and pay attention to market fluctuations. A good financial advisor will also be concerned about the long-term viability of his or her client’s chosen portfolio. After all, you do not want to invest your retirement money in a company that will only exist for a few years.