The Differences between a Wealth Manager
and a Financial Advisor
Are you looking for a well-paying career? Well, both a wealth manager and a financial advisor are two jobs people get highly paid for. However, they are not as similar as people may think. It is true that both of them are in the financial services industry, and they are both very rewarding jobs. But, what is less known is that there are actually clear-cut differences between the two.
Services offered by financial advisors
The two jobs require a different skill set. Financial planners essentially help you manage your day-to-day finances and plan what kind of lifestyle you can afford to live, whether it be a lavish one or one where you save up money for the next month. Financial planners help with budgeting, giving you a ballpark amount of how much you can spend and how much you need to save from your monthly income.
They also help you figure out things like cash flow planning, whether you are making enough to retain your current lifestyle, and saving. They can help you figure out how much you need to save to reach your long-term goals, such as send your children to college or save up for retirement. Most people that hire financial planners are middle class, and people who need to make the current amount of money they have last a long time.
Services offered by wealth managers
As compared to financial advisors, wealth managers are usually hired by very rich individuals that have an extremely high net worth. Wealth managers manage their wealth for them. This does not mean day-to-day cash spending.
Wealth managers are responsible for handling estates and plan what happens to the individuals' or family's estate, planning capital gains, and also managing the risks that come with all of this. Wealth management is very important if you are someone who owns a lot of assets and makes a lot of money. If you are looking for wealth management Tucson then many companies can be found anywhere from Tucson to any other state in America, such as California.
Which career can you make it big in?
It is possible to make it big in both careers, as the two jobs require more or less the same skillet, with a few differences. You need to love the markets, you must be good at selling things, and of course, being good with numbers can’t hurt! However, if you are familiar with some people who have a high net worth and their circle, it will be easier for you to integrate yourself with them and take on the role of a wealth manager. If you do not have these contacts, perhaps becoming a financial advisor is more suitable for you.
Key take away the difference
The key difference between the two is that financial planners manage the day-to-day cash flow of an individual, such as what percentage of their salary can go to groceries, what percentage can be spent on leisure and what needs to be saved. On the other hand, wealth managers go big. They do not manage the day-to-day finances, rather the literal wealth of individuals.
Both careers have some differences, but if you are good with people and numbers, you can make it big in either one of them! Persevering through the hard times and keeping yourself determined is all that matters to reap the benefits of a successful career.