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Finance
Wealth Management
A comprehensive financial advisory service that combines investment management, tax planning, estate planning, and other financial services for high-net-worth individuals.
Traditional wealth management kicks in at around $1 million in investable assets, with private banking services typically starting at $5-10 million. The fee structure usually involves an assets-under-management fee (typically 0.5-1.5% annually), which covers investment management and planning services. Critics note that AUM fees incentivize advisors to grow assets under management rather than necessarily pursuing the best overall financial strategy for the client.
The fiduciary standard is the critical distinction in wealth management. A fiduciary is legally required to act in the client's best interest. Non-fiduciary advisors (brokers) must only recommend 'suitable' products — a lower standard that allows recommending products that pay higher commissions even when better alternatives exist. Always confirm whether an advisor operates under the fiduciary standard before engaging them.