People think that wealth is only money. However, it is only half of the story. We should think that wealth is assets owned by a person, community, company or country. Assets that you own – car, house, watches, paintings and etc. cash should be included also here. Even if you have a solid amount of assets that does not mean that you are wealthy. It is easy to calculate how much wealth you have by using this formula:
Wealth = assets you own – assets you owe (debt)
If you owe more than you own you should not be considered as very wealthy.
The term – wealth management is widely used by private clients firms, financial articles, alternative investment management advisors in front of their customers. From the individual’s perspective, wealth management can be considered as the science of solving/strengthening his or her financial position. From the alternative investment management advisor’s prospect, it is the capability/competency of a financial advisor to introduce reliable financial services or products which could enrich their customers in a financial prospect. Wealth managers/advisors specialize in products/services they know the best and are truly client-centered. A proficient wealth manager meets his clients without having any presumptions about financial products/ services are pertinent for them.
It is a prevalent situation for wealthy individuals or companies to have wealth managers to clarify a certain alternative investment management need. Wealth managers must understand the person and as well as his financial objectives financial and find out what is important for his or her and why. Only then wealth manager or wealth management firm can involve the pertinent professionals and refer the financial products that satisfy the person. However, wealth management is not for all individuals in most cases it is for the wealthy ones with various needs and demands which are ascertained through the consultative process.