Many people succeed in saving at least a little every month; often, this is done after expenses are taken out. Whether you are just taking your first steps into leveraging that money to work for you or you are feeling overwhelmed at managing your own portfolio, you may have begun looking into financial advisors to help you navigate the process.
Even a short search may have revealed that you have many options to choose from, including both portfolio management services and wealth management professionals. How do you choose which one is right for you? Do you even need one at all? In order to answer these questions, you must first learn more about what these financial experts do, how their roles are different and who is best suited for their services.
What Is Portfolio Management And What Does It Accomplish?
Portfolio management is a type of financial advising and assistance that focuses on your portfolio. A portfolio is a combination of all of the stocks, bonds, mutual funds, ETFs, cash equivalents and more that a person maintains as their financial assets.
Whether you invest in only one stock or a broad spectrum across the market, you have a portfolio, and a portfolio management professional can help you to determine whether your current allocation (the way that you have divided your money among each asset in your portfolio) is suited to help you accomplish your goals.
One way that they may do this is by recommending a different allocation or in differing amounts. If you are approaching retirement but are averse to risk, your portfolio manager may recommend moving money out of high-risk stocks and into more secure vehicles such as bonds and other assets to help diversify. In order to accomplish this, your advisor will learn about your goals and how to tailor your portfolio to pursue them.
Portfolio management also includes services such as helping you to pick the right funds for you; an advisor can steer you toward options with low fees or favorable terms. Reorganizing your money so that it is ready and available for you in retirement with minimal costs is an important part of how a portfolio management agent can help.
What Is Wealth Management And How Is It Different?
Wealth management differs from portfolio management in important ways. While a wealth management professional will be aware of your portfolio and include it in your comprehensive financial plan, a wealth management advisor is more focused on your entire financial picture.
Where a portfolio manager focuses on your investments, a wealth manager will consider how your money strategies can contribute to building your overall net worth. You can count on wealth management services for help with estate planning, accounting, strategic approaches to taxes and more.
Think of wealth management like a holistic financial service that views the whole picture. You can receive broad-spectrum advice and help from a wealth management professional and detailed advice about your investments from a portfolio expert.
Why Anyone Can Benefit From Financial Advising Services
Some people may think that they do not make or save enough money to make the services of a wealth or portfolio management professional worth it. However, a strong start on your journey to financial health can have long-lasting impacts, and any amount of money can be leveraged to grow and support your goals and needs. So, how can a wealth management advisor help?
A wealth management professional can help you to understand:
- how to boost the amount that you save in sustainable ways
- how you can make more progress than you were previously
The best way to learn if these services can benefit you is to speak with both a wealth management and portfolio management expert. Remember:
- You are “worth” the time, even if you do not already have a portfolio of a million dollars
- Everyone starts somewhere
- Taking charge of your financial health and wellbeing will set you up for success
Trust The Professionals To Provide Guidance Customized To You
If you are considering a portfolio management service, assistance with wealth management or both, be sure to entrust your financial considerations to professionals you can trust. The experts at Inflection Advisors would be happy to help you explore your options and set you up with a professional who is suited to your specific needs and goals.