When people hear that we are a team of wealth managers, some of the first questions they ask are: What is a wealth manager? What does a wealth manager do? And how does a wealth manager differ from other financial professionals? It’s a fair question, and an important one. After all, there are plenty of financial professionals out there, from investment advisors to planners and brokers. But wealth management stands apart for its depth and coordination. It’s not just about picking investments or managing risk, it’s about creating a comprehensive, personalized strategy that aligns your finances with your life and your unique goals. So, what does a wealth manager do, and how do you know if it’s time to work with one? Let’s break it down.
What Do Wealth Managers Do?
A wealth manager is a financial professional who offers comprehensive, personalized financial services to affluent individuals, families, or business owners. What is a wealth manager versus a standard financial advisor or planner? The distinction lies in the scope of services. A wealth manager typically integrates investment management, financial planning, tax strategy, estate planning, risk management, and philanthropic giving into a cohesive plan tailored to your unique life circumstances and goals.
What does a wealth manager do day-to-day? They act as a financial quarterback, coordinating with your attorney, CPA, insurance agent, and even your family to ensure every piece of your financial life is working toward your long-term vision. This holistic, proactive approach separates wealth managers from traditional advisors who may focus solely on investment returns or insurance products.
Wealth Manager Key Responsibilities and Areas of Focus
Here’s a snapshot of what a wealth manager typically helps with:
- Investment Strategy & Portfolio Management: Building and managing a diversified portfolio aligned with your risk tolerance, timeline, and goals.
- Retirement Planning: Helping you prepare for and transition into retirement with income strategies, tax planning, and withdrawal sequencing.
- Estate & Legacy Planning: Working with estate attorneys to develop wills, trusts, and gifting strategies that preserve wealth across generations.
- Tax Optimization: Collaborating with CPAs to implement strategies like tax-loss harvesting, Roth conversions, and charitable giving.
- Business Succession Planning: For business owners, wealth managers help structure succession plans and exit strategies.
- Philanthropy & Impact Investing: Helping clients align their wealth with personal values through charitable contributions or ESG-focused investments.
In short, they address the full picture beyond just numbers on a statement.
Who Should Work with a Wealth Manager?
Wealth management isn’t just for billionaires. Typically, individuals with $1 million or more in investable assets benefit most from working with a wealth manager. That said, those experiencing “money in motion” moments often seek this level of guidance, regardless of net worth. These can include things like selling a business or property, receiving an inheritance, getting married or divorced, planning for retirement, or facing an unexpected windfall like winning the lottery or being involved in an IPO (Initial Public Offering). If your financial world is starting to feel more intricate and you want a coordinated strategy to build, protect, and eventually transfer your wealth, working with a wealth manager could be a smart and timely move.
Wealth Manager Credentials and Qualifications
Not all wealth managers carry the same credentials or operate under the same standards. Here are some well-respected designations in the industry:
- Certified Financial Planner™ (CFP®): Indicates rigorous training in all aspects of financial planning and a fiduciary obligation to act in your best interest.
- Chartered Financial Analyst (CFA®): Denotes deep expertise in investment management.
- Certified Public Accountant (CPA): Useful when tax planning is integral to your wealth strategy.
How Are Wealth Managers Paid?
Fee structures can vary significantly, so it’s important to understand how your wealth manager is compensated. There are the various ways in which a wealth manager can be paid, including Fee-Only, Fee-Based, and Commission-Only. Fee-Only advisors charge a flat fee, hourly rate, or percentage of assets under management (AUM), and receive no commissions. This model eliminates most conflicts of interest and works in your best interest as a fiduciary. Fee-Based advisors may charge a fee and receive commissions from products sold; be sure to ask about potential conflicts of interest, and whether or not they will be acting in your best interest as a fiduciary. Commission-Only advisors earn money by selling financial products; they are often not held to fiduciary standards.
Many investors prefer fee-only fiduciaries for their “client-first” approach and alignment of incentives. Always ask how your wealth manager is paid and if they follow the fiduciary standard. If they are “fee-only” and a fiduciary, it means they are legally required to always act in your best interest. You can ask any wealth manager that you interview to complete a “Fiduciary Attestation Form” or use the “Comprehensive Financial Advisor Diagnostic Questionnaire” created by NAPFA to help evaluate your options.
Wealth Management vs. Financial Planning vs. Asset Management
Let’s clear up a few common points of confusion regarding what is a wealth manager; what is a financial planner; and what is an asset manager. A wealth manager offers a comprehensive, integrated approach to your entire financial life, including strategy, implementation, and coordination. A financial planner tends to focus on budgeting, retirement planning, insurance, and saving goals, which is ideal for those in early or mid-career stages. Lastly, an asset manager primarily focuses on investing your portfolio to maximize returns.
The overlap can be significant, but wealth managers stand out for delivering holistic advice, and piecing together every financial decision to fit into your broader life goals.
What Questions Should You Ask When Interviewing a Wealth Manager?
Not all wealth managers are created equal. Here are some interview questions to ask to help guide your decision:
- Are you a fiduciary?
- What are your credentials and years of experience?
- What services are included in your offering?
- How do you get paid?
- Do you work independently or for a brokerage firm?
- Who is on your team and what is their role?
- What does your typical client look like?
- Can you walk me through how you’d handle [insert your situation here]?
Remember, you’re not just hiring a wealth manager, you’re selecting a long-term partner. Make sure the relationship feels transparent, collaborative, and tailored.
Why Holistic Advice Is More Important Than Ever
In today’s environment, a siloed approach to financial planning can do more harm than good. Tax decisions impact investment returns. Estate planning affects liquidity needs. Insurance strategies tie into retirement plans. A true wealth manager doesn’t just look at one piece of the puzzle, they assemble the entire picture, helping you make informed, cohesive decisions.
Wealth Management Industry Trends
The world of wealth management is always evolving, and we’re seeing some exciting shifts that reflect the changing needs of today’s families. Technology is playing a bigger role than ever, with AI and advanced planning tools helping us provide smarter forecasting and even more personalized strategies. At the same time, values-based investing is gaining momentum with many client portfolios reflecting what matters most to them. Whether it’s sustainability, social impact, or specific causes close to their hearts, investors are increasingly looking for ways to align their portfolios with their personal values. Next-generation wealth transfer is also top of mind, with more families looking for ways to prepare and educate their heirs for long-term financial stewardship. These trends all point to one thing: the importance of having a thoughtful, empathetic, and future-focused team by your side.
Wealth managers can help simplify the overwhelming, coordinate the moving pieces, and help you make decisions with clarity and confidence. They’re more than an investment advisor, they’re your advocate, strategist, and guide through life’s financial complexities. Whether you’re preparing for retirement, navigating a life change, or simply ready to take a more intentional approach to managing your wealth, partnering with the right wealth manager can be one of the most impactful decisions you make.
If you have any questions or need personalized wealth management guidance, our team of CERTIFIED FINANCIAL PLANNERTM (CFP®) professionals would be happy to assist. We can show you how our financial planning process can help you stay on track and achieve your financial goals. Please contact us for a complimentary discovery call at 631.218.0077. You can also send us a message directly.
R.W. Rogé & Company, Inc. is an independent, fee-only financial planning and investment management firm serving clients locally and virtually across the country, with Long Island, New York, and Beverly, Massachusetts office locations. R.W. Rogé & Company, Inc. was founded on a “client first” culture and proudly commits to acting in your best interest as a fiduciary. We have helped clients Plan, Achieve, and Live® the life they want since 1986. To learn more about how we do this, explore our detailed overview of services and approach.
