As the economy matures and is granted a more global character, management of personal and corporate financial matters gets more complex. Tailored financial advice to high net worth individuals and the affluent business owner is designated wealth management. To match the needs of the affluent customer with tailored financial services, professional advisers consider the personal situation of a client and his family to locate the most appropriate solutions. Wealth management solutions are not limited to local products but see the global market as its primary source of appropriate solutions.
Wealth management approaches finances as a global matter. As such, optimization of fees, management and taxation is crucial to deliver the needed outcomes. Alongside the positive return on investment, professional advisers consider asset protection and estate planning as well in their holistic approach to the best solution for individual clients.
The relationship between the customer and the adviser is based on mutual trust and requires designated relationships. As such, wealth management is often correlated with private banking. Both industries have highly rated and expensive services and are therefore available to wealthy individuals and profitable professional enterprises. Most advisers have minimum capital requirements to qualify for private banking and wealth management services.
The tax planning section of wealth management may involve the relocation of business activities or assets to other jurisdictions. This is where offshore financial centers play an interesting role. However, recent legislation limits the possibilities for non-resident depositors to just stash funds in a tax haven. As such, high net worth individuals and professional businesspeople should seek appropriate advice before jumping into the pitfalls of the industry. The underside of affluent advice may have several one size fits all solutions that come at high prices. Therefore, appropriate comparison of services is recommended so one can avoid becoming part of an industry that does not really provide tangible solutions but merely has to limit its services to a specific group.