Year 3 · Applied Finance · Wealth Management
Wealth Management
Learn how wealth managers translate a client’s goals, balance sheet, risk profile, taxes, liquidity needs and life events into a disciplined investment and planning strategy.
LEARNING OBJECTIVES
What you should be able to explain after this lesson
01
Explain how wealth management differs from asset management and investment banking.
02
Build a client discovery framework covering goals, assets, liabilities, cash flow, taxes and family circumstances.
03
Distinguish risk tolerance, risk capacity and required return.
04
Translate an Investment Policy Statement into an asset-allocation and liquidity framework.
05
Understand tax-aware investing, retirement planning, concentrated-position risk and estate-planning coordination at a conceptual level.
06
Recognize behavioral biases, fiduciary responsibilities and communication standards in long-term advisory relationships.
CONCEPT MAPFrom client discovery to long-term wealth plan
Wealth management starts with the person, not the product
CORE FACTS · SAME IN EVERY MODE
Wealth managers advise individuals and families across investments, liquidity, retirement, taxes, estate coordination and major financial decisions.
Client discovery should identify goals, time horizons, income, spending, assets, liabilities, liquidity needs and family circumstances.
A portfolio recommendation is only appropriate if it fits the client’s broader financial plan.
Wealth management is relationship-driven and typically requires recurring review as client circumstances change.
BeginnerTeaching style changes, knowledge does not.
A wealth manager does more than pick investments. The adviser first learns what the client is trying to achieve, what resources the client has and what risks the client can realistically take.
COMPARISON
Wealth management vs asset management
| Area | Wealth Management | Asset Management |
|---|---|---|
| Primary client | Individuals and families | Funds and institutional mandates |
| Scope | Investments + planning | Portfolio management |
| Key focus | Life goals and total balance sheet | Mandate performance and risk |
PROFESSIONAL VOCABULARYNet worth / patrimoine net Client discovery / client discovery Holistic advice / conseil global
Total assets minus total liabilities.
Structured process for understanding a client’s financial situation, goals and constraints.
Advice considering investments together with broader financial circumstances.