WHAT IS WEALTH MANAGEMENT ?

What is Wealth Management?

Do not be fooled—What is in a name? There is more to Wealth Management than a name. There is no industry standard to provide an accurate definition of Wealth Management. Just because someone calls themselves a wealth manager or a business uses Wealth Management in their name should not mean anything to you. Perhaps it is best to start with what Wealth Management is not.

Wealth Management is not Investment Advice or Investment Management. It is much bigger than these activities. Wealth Management is also not solely Financial Planning, although Financial Planning is a part of the picture.

Wealth Management is a combination of 2 distinct processes—Financial Planning and Portfolio Management

The primary objective WeaIth Management should be to encompass all parts of a person's financial life. Since there are many facets to a person's financial situation, there are many disciplines that may need to be employed. There a two (2) approaches to accomplishing this primary objective:

1. Larger Banks, Financial Management, Financial Planning, and Insurance Firms all want to warehouse all of the required disciplines or functions under their purview. Some do it better than others, but oftentimes, the process is shortened in favor of an accelerated sales cycle. Their pitch seems to make sense: "Why should you attempt to integrate pieces of advice and various products from multiple professionals when our clients are more likely to benefit from a fully integrated approach with our firm? While this sounds good and makes sense in theory, it often fails with one exception. Businesses or Financial Center Departments that target High Net Worth Individuals, and Families, through what is often called Private Wealth Management. Unfortunately, it is out of the reach of most investors, and it is often quite costly.

2. Many investors, or potential investors, come to the table with professional relationships from all around the financial landscape (i.e. Attornies, Tax Professionals, Accountants, Insurance, etc.). Sometimes these professionals may be providing conflicting, or inaccurate advice. Perhaps not intentionally, or due to incompetence, but each professional is looking at a subset of the client's data that applies to their own profession. Additionally, we all have a tendency to view the same data through our own lenses and experiences. Who then is shepherding this cabal toward efficiently meeting the need of clients? Enter the Financial Advocate!

A Financial Advocate coordinates Financial Teams of professionals representing different services, that may be needed at times, to help a client effectively manage their assets. After a few meetings, or calls with a client a Strategic Plan is developed, data is gathered, and current and future needs are categorized and prioritized. Depending on the nature of a particular need, a meeting is called to address it. Certain participants are invited to attend from the client's Financial Team, experts in the disciplines needed to address and provide holistic solutions to meet the addressed need. The examples are endless so I won't address these here, but you can get some ideas as you refer to the Wealth Management graphic above.

Wealth Management | Wrap-up

It is, likely, obvious to even the most casual observer that I prefer option #2. In fact, I am quite passionate about it! It is my opinion that what I have broadly sketched out for you above, may not only be the purest form of Wealth Management but perhaps the most honest form as well.

In fact, it may be the only way to root out the Greed and Self-Centeredness that has captured so much of our financial system in general, our entire economy, and even the social fabric of our nation. But this is not solely a U.S. issue, it is a World issue.

I am not suggesting that HIS Financial Network, or its model for Wealth Management, can save our financial system. However, I do believe it can help liberate one client at a time from its grasp through the sharing of vital information, derived from client-provided data, with a team of professionals that are assembled with one goal in mind—Helping People Prosper by Bringing Light into the Dark Places of Wealth Management.