While it may seem similar and there are many crossovers, there is a difference between wealth management and investment management. 

There are many nuances of financial planning which is why wealth management and investment can often be linked together. One focuses on the current wealth of a client, whereas the other focuses on growing the wealth of a client. 

How each of these financial situations are managed may vary from person to person, which is why working with the right financial planner is important.

Difference between wealth management and investing 

Differences between wealth management and investing management are subtle as can be common in many areas of financial planning. 

Wealth management looks at managing a person’s current assets and overall wealth. It looks to optimise the person’s wealth and helps to ensure a more comfortable life. 

Investing can be done in many ways and for many different reasons. However the main focus of investing is usually to create wealth and grow financial assets which can be leveraged later in life. 

A financial planner can either specialise in a particular area or they can provide a full financial planning service. It is essential that whether you are looking for wealth management or investment management that you work with a financial planner who understands your goals. 

Wealth management

Wealth management has a strong focus on the overall wealth of the client so includes tasks such as:

• Retirement plans
• Tax services
• Estate planning

Wealth management looks at everything that you need to maintain your wealth for now and for your financial future. 

Investing 

Investment management looks at increasing your wealth based on your investments. An investment manager will look at the following:

• Monitoring investment trends 
• Risk management on your accounts
• Buy and sell investments based on an agreed investment plan 

There are many various investment options available, working with an investment manager will help ensure you make the right choice for your financial future. 

Benefits of wealth management

There are many benefits to wealth management such as:

• Ensuring financial stability for the future
• Maximising current financial situations 
• Ensuring estate planning and inheritance is fruitful for those receiving 
• Protecting your financial status with relevant insurance protections

Wealth management is an essential part of financial management, especially when you reach a certain level of financial wealth. Having the right financial wealth planner is key to ensuring you are protecting your financial circumstances for now and the future. 

Benefits of investing 

Investing has become quite the internet sensation, with many people online offering advice around investing and where to invest. 

There are many benefits to investing, such as:

• Potential to increase wealth 
• Gain financial assets 
• Generate a financial portfolio which can later cash out for future investments or personal gain

Investment is not the get rich quick scheme many make it out to be. Investments take time and clear understanding of the expectations of each client and investment. Working with a financial planner who specialises in investment management will be essential to optimum success of investments. 

Here at Schofield, our financial planners focus on understanding your financial goals and requirements. This allows us to accurately create a detailed financial plan with key services to ensure you reach your financial goals. Contact us today to see how we can help with your financial planning needs.