How do wealth managers differ from financial planners?

When it comes to managing your finances, doing it alone can sometimes be overwhelming, as you try to come up with a plan. A professional adviser can be a great help to you, especially with investment advice and financial planning. When you are seeking financial advice, make sure that you are getting advice from the right expert for your needs.

Wealth managers and financial planners represent subsets of financial advising. They differ by the financial advice they give, the type of products they offer, and the type of clients they serve.

What is wealth management?

Wealth management combines other financial services to address the needs of their clients. The type of services they offer generally include comprehensive investment and wealth management with financial advice, risk management, tax guidance, and estate planning. Wealth managers typically aim their services at high-net-worth individuals and families, who are looking to preserve or grow their assets.

What is financial planning?

On the other hand, individuals at all income levels can benefit from financial planning. Financial planners will go through their processes to evaluate your current financial situation and goals, along with exploring opportunities to improve it. Financial planners generally assist clients with lifestyle planning, helping you with prioritising your long-term financial goals which includes financial advice, savings, investments, and retirement planning. Financial planners help define goals and objectives, while creating strategies to accomplish these goals.

Where to get advice

Financial advisers come in all shapes and sizes, so how do you choose who can best assist you? Some advisers specialise in specific products such as insurance, mortgages, or different investments types. Other types of financial advisers can take a more comprehensive look at your finances to help shape up a plan with you. One important thing before sticking with an adviser that is suitable for you, is to check whether they are a registered, authorised, or simply selling one company’s products.

It may be best for clients to seek financial advice from those who specialise on a specific investment product, as they are most likely to be more equipped than those offering general advice. For example,  if a client is looking for investment advice it may be better for them to seek advice from a specialist KiwiSaver Financial Adviser who may have a better understanding and experience advising on KiwiSaver products.

Advice on KiwiSaver investments

When you are considering making big changes in your life financially, developing a financial plan is important to provide guidance on navigating these changes. It is no wonder that financial returns for Kiwis who get professional financial advice are generally better than those who don’t, as financial planning serves as the foundation for your financial success. If you are looking for advice on your investments, it is worth seeking advice from a professional, especially if you are unsure about the fund you are investing in. 

At National Capital, we advise our clients on investment strategies and building up an optimal investment plan for their situation, whether you are planning for retirement or to buy your first home. 

Managing money and investments can be quite challenging, why not let National Capital help? Submit our KiwiSaver HealthCheck to get started on your journey to a more financially secure future.