Wealth management is a type of financial service that caters to the needs of affluent clients. For wealthy clients with diverse and extensive needs, it presents a valuable service.
What types of wealth management services are there? Do you really need them? How much do these services cost?
Wealth management typically adopts a comprehensive approach, offering a wide range of services. Some of these include:
Wealth management advisors employ a consultative process. Advisors gather information on clients’ needs and specific circumstances. Then, wealth managers tailor a strategy to help clients achieve their goals. They take a holistic approach in addressing clients’ financial needs and objectives.
For example, consider a client with $10 million in investable assets. This client might have a trust fund set up for grandchildren and recently lost a spouse.
A wealth management firm would not only invest these funds but also provide will and trust services for estate planning and tax minimization.
A family office is a type of wealth management firm that predominantly serves ultra-high-net-worth clients. They handle typical wealth management needs as well as provide budget assistance, financial education services, and concierge services for non-financial needs like education, travel, and household management.
The required amount of funds depends on the wealth management company and can vary significantly based on clients’ needs and services provided. Typically, wealth managers and their firms set minimum requirements related to investable assets, net worth, or other criteria.
However, there is an existing amount of assets that is considered reasonable for engaging a wealth management firm. According to Quadra Wealth, typically $2 million to $5 million in investable assets is the minimum threshold for hiring wealth management advisors, sufficient to justify their costs.
Even though companies have minimum requirements, wealth management firms may be willing to accept adult children of high-net-worth clients to ensure that the inherited wealth remains with the firm.
Different companies have other minimum requirements. For instance, Fidelity Private Wealth Management has specific criteria. It offers clients an exclusive management team led by Fidelity advisors and provides comprehensive financial planning and investment management.
According to Fidelity, the general eligibility requirement is managing $2 million in qualified accounts and having $10 million in investable assets. Their comprehensive advisor fees range from 0.2% to 1.04%.
However, Fidelity does offer a lower tier of Fidelity Wealth Management services and provides ongoing investment management based on financial circumstances. Comprehensive advisor fees range from 0.2% to 1.5%.
Wealth management fees are a percentage of assets under management (AUM). According to Quadra Wealth, this ratio typically falls between 0.25% and 2%. Fees are paid annually based on the size of clients’ accounts. Normally, fees decrease if more is invested with the company.
While many wealth management services collaborate with various clients, from a cost perspective, considering wealth management services typically becomes more reasonable if you have at least $2 million to $5 million in investable assets.
Remember, a portion of your AUM goes to the wealth management company.
Wealth management is suitable for high-net-worth individuals or their children who are accumulating assets. Professionals in high-paying industries may also benefit from wealth management services.
Wealth management strategies vary based on client needs. For example, some clients want to accumulate wealth while others aim to preserve their existing wealth.
Due to costs, wealth management may not be suitable for everyone. However, if you still feel you need or want help, there are alternative solutions.
Both Fidelity and Vanguard offer lower-tier options to help you manage your assets.
Financial advisors are also an option. You should take the time to research all potential candidates and read reviews. Request references during interviews.
Robo-advisors have become popular, offering lower-cost advice.
For tax planning strategies, hiring a certified public accountant (CPA) is advantageous. If you need help deciding how to pass on assets to heirs, seek the assistance of an estate planning attorney.
If you need help managing finances and investments, wealth management services are a good choice. However, due to their AUM fee structure, costs may outweigh benefits.
The original article “WhatIsWealthManagem ent,andShouldYouUseIt?” was published on the English edition of the Epoch Times website. Epoch Times © 2025. This article represents the author’s views and opinions for general informational purposes only, with no intention of recommendation or solicitation. Epoch Times does not provide investment, tax, legal, financial planning, real estate planning, or other personal financial advice. Epoch Times does not guarantee the accuracy or timeliness of the article content.