- Size: 2.5 MB
- Pages: 29
- Format: PDF
- Quality: Very Good
- Language: English
- Presented by: CA. Rakesh Kaushik
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Excerpt from the pdf
Page 1
For majority of us, the working life starts at21 and ends at 60; whereas our post-retirement life starts at 60 with an averagelife expectancy of 85.
This means that, we have 39 years to amass wealth to fund thebalance 25 years. Should be easy, right?But don’t we see many people struggling? What is the reason?
Page 2
WHAT IS WEALTH MANAGEMENT: Wealth management combines both financial planning and specialized financial services, including personal retail banking services, estate Planning, legal and tax advice, and investment management services.
Goal – Generate Long Term Wealth Scope of wealth management includes – Wealth Creation, Wealth Management, Wealth Preservation and Wealth Transfer This service is usually appropriate for wealthy individuals with a broad array of diverse needs.
Family offices are full service private wealth management services that serve just one or a small number of ultra high net worth families.
Concept of wealth management originated out of the concept of Family Office There are majorly three types of wealth management service providers viz. Banks, Brokerage firms and Boutique advisory firms.
A wealth management advisor is a high-level professional who manages an affluent client’s wealth for a fee. They are Skilled Fund Managers who deal with more complex asset class (investible assets other than primary residence, consumables and consumer durables) than loan officers.
Affluent clients benefit from a holistic approach in which a single manager coordinates all the services needed to manage their money and plan for their own or their family’s current and future needs.
Assets managed by wealth managers are called AUM- Assets Under ManagementIncome is Function of AUM, it is perpetual and grows with time.
Page 3
WHAT IS NOT WEALTH MANAGEMENT ? Wealth management is not Speculation-
investment not based on thorough analysis for safety of principal and an adequate return.
Private Banking is subset of Wealth Management as it deals with only investment activities and nor financial planning and execution/monitoring Asset management involves managing assets which includes stocks, bonds, real estate of investors.
Whereas Wealth Management is quite broader financial management services offering such as investment management, retirement planning, estate planning etc. (Read more in pdf)