Wealth management is more than growing investments for clients. It’s a structured process that helps people and businesses plan, grow, and protect their wealth. When clients understand what to expect during the wealth management process, they can make better financial decisions and stay on track to meet goals.
The wealth management process starts with building trust. During the client onboarding process, advisors learn about a client’s needs, goals, and concerns, which sets the foundation for personalized financial strategies.
What Is the Wealth Management Process Really Like?
The wealth management process is a step-by-step approach to managing money and assets. It helps people and businesses achieve their financial goals. Advisors develop their wealth management processes to create personalized plans that match clients’ needs and priorities.
The financial planning process in wealth management covers more than investments. It includes:
- tax strategies and planning
- estate planning
- retirement planning
- risk management
- asset allocation
By combining these services, wealth managers offer a complete solution for building and protecting wealth. However, you should ask what services a wealth manager provides. Some managers only offer some of these services while others have more holistic approaches. Asset Preservation Wealth and Tax is one firm that acts as a one-stop shop for wealth management.
You should also know that every wealth management process is different. Different firms have their own philosophy and manner of working with clients. Each plan is tailored to the client’s unique financial situation, goals, and risk tolerance, ensuring that every decision supports long-term success.
Why a Structured Wealth Management Process Matters
A structured wealth management process helps clients manage their money with confidence. It creates a clear plan for reaching financial goals and adapting to life’s changes.
Here’s why it’s important for clients to follow this process:
- It helps you achieve long-term goals. A structured process focuses on the client’s future. It helps them save for retirement, fund education, or grow their wealth over time.
- It provides peace of mind. Knowing there’s a plan in place reduces stress, and clients feel more secure about their financial decisions.
- It helps you adapt to change. Life and markets can be unpredictable. A structured process makes it easier to adjust plans when needed, keeping clients on track.
- It improves financial decision-making. Clear steps to follow help clients and advisors make better financial choices. The process helps avoid impulsive decisions and focuses on long-term success.
6 Wealth Management Process Steps
These wealth management process steps help advisors create and manage financial plans meeting client goals. Here’s how it works:
- Determining Financial Goals: You meet with a wealth manager to discuss objectives like buying a home, saving for education, or planning for retirement. This initial consultation sets the foundation for a tailored financial plan.
- Gathering Financial Information: You provide details on income, assets, debts, wills, trusts, insurance, investments, and expenses. This is a comprehensive assessment to help craft an effective investment strategy.
- Assessing the Portfolio: Wealth managers evaluate your current financial strategy They identify strengths and areas for improvement. They also consider your risk tolerance and investment timeframes to recommend suitable asset allocations.
- Implementing the Plan: Advisors make recommendations and discuss potential changes to the existing plan. You have the freedom to accept or decline suggestions. You should always be comfortable with the proposed strategies.
- Managing Investments: Once a strategy is agreed upon, the wealth manager sets up and oversees the investments. This includes selecting appropriate assets and making sure the portfolio aligns with what you want.
- Ongoing Monitoring and Communication: Investment performance is regularly reviewed, and adjustments are made as needed. Open communication between the client and advisor ensures that the plan remains aligned with the client’s evolving financial situation and objectives.
Keep in mind that these steps may vary, depending on your firm.
The Wealth Management Client Onboarding Process
The wealth management client onboarding process is the first step—and it’s the most critical. It helps advisors understand the client’s financial situation and goals and sets the tone for building a long-term relationship.
Client onboarding is a key moment for wealth managers to show new clients they made the right choice.
Here’s what typically happens during the wealth management client onboarding process:
- Initial Consultation: The advisor meets with the client to discuss their needs, goals, and concerns.
- Risk Assessment: The advisor evaluates how much financial risk the client is comfortable taking.
- Data Collection: The client shares important documents like income statements, tax returns, and investment records.
Trust is built during this process. It sets expectations for the ongoing relationship. Advisors listen closely to what matters most to the client, ensuring that the financial plan is customized and effective. A clear and organized onboarding process sets the stage for long-term success.
The Client Experience: Wealth Management Business Processes
Behind the scenes, firms should have a system that improves client experience. It starts from Wealth management business processes are established to help clients understand the technical nature of finances. These processes help advisors deliver advice and manage investments.
Here are some key wealth management business processes:
Client Relationship Management
Advisors will track your information, preferences, and goals. They may use tools and software to stay organized and provide better service. Strong communication is a priority in this process.
Open communication means you should be comfortable asking questions and have an open line to your wealth manager. A system will make reviewing and adjusting your plans much easier.
Compliance and Regulation Handling
Wealth management firms must follow strict rules to protect clients. They ensure every recommendation meets legal and ethical standards. This builds trust and keeps operations secure.
Analysis Technology and Operations
Firms may also use advanced software in the wealth management investment process to manage portfolios, analyze data, and track performance.
This doesn't mean that the software is doing the heavy lifting. It takes great skill for wealth managers to analyze data and create a plan. Technology helps advisors work faster and focus more on client needs.
Build a Strong Financial Foundation
The ideal wealth management firm will have processes that put you first from the get-go. Asset Preservation Wealth and Tax is a fiduciary—we are obligated to operate in your best interests. Our comprehensive services leave no stone unturned.
Work with the right team today!
Stewart Willis is the founder and president of Asset Preservation Wealth & Tax, a financial planning firm in Phoenix, Arizona. Investment advisory services offered through Foundations Investment Advisors, LLC, an SEC registered investment adviser.
The commentary on this blog reflects the personal opinions, viewpoints and analyses of the author, Stewart Willis, providing such comments, and should not be regarded as a description of advisory services provided by Foundations Investment Advisors, LLC (“Foundations”), an SEC registered investment adviser or performance returns of any Foundations client. The views reflected in the commentary are subject to change at any time without notice. Nothing on this website constitutes investment, legal or tax advice, performance data or any recommendation that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person. Personal investment advice can only be rendered after the engagement of Foundations for services, execution of required documentation, including receipt of required disclosures. Any mention of a particular security and related performance data is not a recommendation to buy or sell that security. Foundations manages its clients’ accounts using a variety of investment techniques and strategies, which are not necessarily discussed in the commentary. Any statistical data or information obtained from or prepared by third party sources that Foundations deems reliable but in no way does Foundations guarantee the accuracy or completeness. Investments in securities involve the risk of loss. Any past performance is no guarantee of future results. Advisory services are only offered to clients or prospective clients where Foundations and its advisors are properly licensed or exempted. For more information, please go to https://adviserinfo.sec.gov and search by our firm name or by our CRD # 175083.
Alternative/Private investments are often complex, speculative and illiquid investment vehicles that are not suitable for all investors and are typically only available to accredited investors who meet certain minimum financial requirements. Alternative Investments often engage in leverage and other investment practices that are extremely speculative and involve a high degree of risk. Such practices may increase the volatility of performance and the risk of investment loss, including the loss of the entire amount that is invested. They are, therefore, intended for experienced and sophisticated long-term investors who also have the financial wherewithal to accept such risks.
