Asset Management vs. Wealth Management and the Advantages of Holistic Financial Planning

Financial planning is essential for everyone, but it is especially vital to those with a high net worth or complex portfolio of assets. Without a comprehensive financial management strategy, you will find that you have fallen well short of your goals when it’s time to ride off into the sunset. If you want to avoid these dangers and maximize your assets, you need a skilled financial advisory firm.

Before you can determine if our firm is right for you, it is important to understand the difference between asset management and wealth management. Below, we outline the unique offerings of each type of management strategy in hopes that it will help you make the best decision for your financial outlook.

What Is Asset Management?

As the name implies, asset management is a process involving your assets. Primarily, asset management strategies are focused on your investable funds. This may include bonds, stocks, mutual funds, ETFs, and any other investment that can be used to grow your wealth.

During a consultation, an asset manager will work with you to determine what investments best suit your goals. They will also help you determine how risky or conservative to be with your assets.

An asset management team will further assist you with asset allocation, which is the action or process of dividing your investable assets. The firm will help you determine what percentage of your funds should be allocated to each type of investment.

Products like stocks provide a huge opportunity for growth but also carry a higher risk. On the other hand, bonds provide a fixed return rate, but they will not create a rapid growth of assets.

Most asset management firms will charge a percentage based on the amount of your assets they oversee. Typically, rates decrease as the amount of funds they manage increases.

What Is Wealth Management?

As mentioned above, asset management is primarily focused on investments and growth. Wealth management  is considered a more comprehensive solution as it addresses multiple facets of asset oversight.

Wealth management firms seek to maximize the wealth of a family or individual while also protecting that wealth in the long term. Wealth management services may include:

  • Education planning
  • Legacy/Estate planning
  • Tax preparation
  • Insurance
  • Charitable acts/donations
  • Retirement planning
  • Investments

Like asset managers, wealth management advisors are usually paid a percentage of the funds they’re entrusted with. However, there are some instances where a wealth management advisor may charge a flat rate.

 

Looking for a financial planner to help you determine your best next step. Schedule a meeting with one of our dedicated advisors today.

 

Holistic Financial Planning

Wealth management is sometimes referred to as holistic financial planning. According to the dictionary by Merriam-Webster, holistic means “relating to or concerned with wholes or with complete systems rather than with the analysis of, treatment of, or dissection into parts.”

Asset management teams isolate your liquid funds and work to grow your wealth through investments. They address only a narrow portion of your financial portfolio.

On the other hand, wealth management firms view your wealth as a series of interconnected parts that form a greater system. To put things simply, we understand that your wealth is only as secure as its weakest link.

By taking a holistic approach, wealth management firms can ensure that you increase your wealth now without compromising your long-term goals. Through a variety of protocols, strategies, and insurance policies, we will ensure that your funds last a lifetime.

The Importance of Financial Planning

Financial planning is essential if you want to enjoy your assets now while still leaving enough for the future. You spent your entire life building wealth and achieving financial success. Taking a holistic approach to financial planning ensures that your lifetime of hard work and dedication was not for naught. The benefits of financial planning include:

Improved Cash Flow

Partnering with a skilled financial advising firm can help you gain a better understanding of your assets. In turn, you will improve cash flow by creating better spending patterns and eliminating unnecessary expenses. Careful budgeting and stringent tax planning will help you get the most out of your cash.

Long-Term Security

In addition to individual retirement planning, you may want to guarantee your family’s long-term security. A financial planner can help you allocate funds and manage investments. You can add an extra layer of security with proper insurance policies, which will give your family peace of mind to handle anything life throws at them.

Higher Quality of Life

Retirement is a time to enjoy your lifelong pattern of hard work and business-savvy money moves. A financial planner can ensure that you are able to get the most out of your golden years and have plenty of funds left over for your loved ones. This can be accomplished through annuity plans, insurance, and wise investment strategies.

Investments

Wise investment strategies are a great way to accomplish your short- and long-term goals. A wealth management firm can help you make the right investment choices to maximize your assets. With their guidance, you can find the right investments to suit your needs, risk tolerance, and timetable for returns.

Better Financial Understanding

The right financial advising firm will help you identify measurable goals and the effects of each investment decision. In turn, you will gain a more complete understanding of your individual financial situation and thus be better equipped to leverage your assets to achieve long-term goals.

In addition, a comprehensive financial planning firm will serve as a one-stop shop for all of your asset management needs. You will no longer need to interact with separate brokers, accountants, or attorneys to manage your portfolio.

You can access all account information with a single sign in. This makes it easier for you and your loved ones to access essential information in the event of an emergency.

Holistic Financial Planning Solutions with BentOak Capital

Are you ready to take control of your financial future? Would you like to partner with an experienced team that can help you manage your wealth?

If so, then it’s time to contact BentOak Capital. We offer comprehensive financial planning services to clients in a variety of fields. You can reach us by completing a contact form or by calling one of our three Texas-based offices listed below.

Financial Advisor in Fort Worth

Acquired in 2017, our Fort Worth office is located at 5000 Overton Plaza, Suite 110. Give us a call.

Financial Advisor in Lubbock

If you need a financial advisor in Lubbock, come see us at 611 University Ave., Suite 220. Be sure to call ahead and book an appointment.

Financial Advisor in Weatherford

For years, BentOak Capital has been the premier financial advisor in Weatherford. We have served this community for several decades and are proud to continue that tradition today. We are located at 201 Fort Worth Hwy. Call us!

Partner with BentOak Capital and manage your financial future today!

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