What is the Difference Between Wealth Manager and Financial Advisor?

What Does a Financial Advisor Do?

What Does a Wealth Manager Do?

What are the Differences Between a Wealth Manager and a Financial Advisor?

Differences

Financial Advisor

Wealth Manager

Target Demographic

Typically assists the low to middle-class of society.

Typically assists ultra-high-net-worth clients.

Aids in lifestyle and financial planning.

Manages and proliferates the wealth of such individuals.

Fees and Payments

Do not require such exorbitant amounts of money to work with their clients.

Need a minimum asset worth multiple lakhs or crores to work with their clients.

Problem-solving Approach

A simpler, less frequent, and at times, indirect approach to solve their client’s economic issues.

More comprehensive, hands-on, and direct approach to their client's economic issues since they work with extremely wealthy clients.

Similarities Between a Wealth Manager and a Financial Advisor

Which One to Choose from Financial Advisor or Wealth Manager?

FAQs on Financial Advisors vs Wealth Managers

What do I need to know to become a wealth manager? up-arrow

A wealth manager must possess some essential skills that include financial modelling, leveraged buyouts, economic and accounting skills, technical analysis and evaluation, acquisitions and mergers analysis, as well as corporate valuation and financing

What kinds of problems do financial professionals deal with? up-arrow

Financial professionals face numerous hurdles, such as economic and financial turndowns, geopolitical aspects, volatile markets, ever-updating rules and regulations, and the evolving technology and trends.

Is opting to become a financial advisor a bad idea? up-arrow

Not necessarily. Financial advising or planning can be a lucrative career choice. However, it does have a few drawbacks like the consistent need to fulfil evolving regulatory demands and dealing with high stress and pressure levels.