Asset management is just what it sounds like: the management of your assets and determining which investments are well-suited to your financial situation. An asset manager helps with asset allocation, based on market outlook and expected rates of return, and choosing how to divide your investable assets across different asset classes – from tangible assets, including real estate, art and precious metals to intangible or financial assets like stocks and bonds.
Wealth management, on the other hand, takes a broader view. It focuses on an individual or family’s overall financial situation and takes steps, not only to maximize wealth, but protect it when things like education; estate and retirement planning; and charitable giving are taken into account. The wealth manager works with you to develop a plan that not only meets your needs and objectives today, but helps re-balance your assets as those needs and goals change over time.
Again, while asset management is focused on growing an investor’s money, wealth management looks to preserve and protect it over the long run, through up and down markets and throughout the client’s lifetime.