Wealth Management vs. Financial Advice: They’re Not the Same
Taxes, estate planning, charitable giving: Your financial life is complicated. A wealth management team will help you with much more than just your money.


These days, there are so many terms used to describe what financial professionals do – advising, coaching, consulting, planning, guiding, managing, etc. – none of them seems to hold much meaning, for investors or those in the industry.
And that’s a shame. Because there is a difference.
Wealth management is one of the terms that is most overused, and it’s often misunderstood. But it’s actually pretty straightforward. Wealth management takes things up a notch, with an adviser or advisory team providing a full range of services for the client in three distinct ways.

Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
1. Investment consulting
You probably see ads and hear pitches every day from individuals and companies who want to sell you investment products. Some do it better than others. Although any licensed adviser can help you on this platform, a good wealth management team can provide a wide variety of options to choose from.
2. Advanced planning
This is where a wealth manager really differentiates himself. Few advisers do this type of planning, which includes:
- Wealth enhancement: This is the use of strategies to deal with cash-flow issues and liquidity concerns, mitigate taxes and maximize growth.
- Wealth transfer: Advisers look for the most efficient ways to pass your wealth on to your heirs in a way that lets your beneficiaries keep most or all of the money.
- Wealth protection: For those who are subject to a lot of liabilities, there are strategies that can help protect hard-earned savings and avoid any blind spots.
- Charitable giving: With proper planning, donating to a charity or charities can be a win-win, maximizing support for a favorite cause while making the most of certain tax advantages.
3. Relationship management
This is about building a trusting partnership that goes beyond the basics, thoughtfully connecting with clients and their needs in two ways:
- The client relationship: Through a careful discovery and review process, the adviser can see where clients are now and where they want to go, and look for any gaps that might exist.
- A professional network relationship: A top-notch advisory firm will build a team around each client to help with all kinds of issues. It could include a CPA, an estate-planning attorney, a property and casualty expert, a long-term care consultant or some other professional. And, if the client already has some of these experts in place, the team will communicate and work with them to further enhance their efforts.
A wealth manager’s No. 1 aim is to find out what’s important to you and provide financial solutions. If you’re looking for a full-service, collaborative approach to reaching your financial goals – now and in retirement – an adviser who practices true wealth management could be just the right fit for you. I typically suggest talking with your friends and family and get a referral that way. When you sit down at your first meeting, ask questions.
- What does their typical client look like?
- What net worth are they used to working with?
Wealth managers should be able to help with tax-reducing strategies, preparing an income plan, maximizing Social Security and making sure estate-planning documents are in order.
Securities offered through GF Investment Services, LLC. Member FINRA/SIPC. Investment Advisory Services offered through Global Financial Private Capital, LLC. California Insurance License #s 0B34918
Kim Franke-Folstad contributed to this article.
Get Kiplinger Today newsletter — free
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

David Kanani is the president of Kanani Advisory Group. He has passed his Series 7 and Series 65 securities exams, and is also licensed to sell life insurance and annuity products. He holds a bachelor’s degree in business administration from the University of Louisville.
-
Fired Up By the Masters and RBC Heritage? See These Homes for Sale By Golf Courses
Five homes for sale near golf courses, for people who can't get enough of the tour.
By Alexandra Svokos
-
The Economic Impact of the US-China Trade War
The Letter The US-China trade war will impact US consumers and business. The decoupling process could be messy.
By David Payne
-
Will My Children Inherit Too Much?
If you worry about how your children will handle an inheritance, you're not alone. Luckily, you have options — from lifetime gifting to trusts — that can help.
By Mallon FitzPatrick, CFP®, AEP®, CLU®
-
Charitable Giving Lessons From Netflix's 'Apple Cider Vinegar'
Charity fraud is rife, and a Netflix series provides a timely warning about donating money to a good cause without looking into its background.
By Peter J. Klein, CFA®, CAP®, CSRIC®, CRPS®
-
Four Takeaways From Filing Your Taxes to Boost Your Financial Future
Now that another tax season is in the rearview mirror for most of us, what lessons can you take from what you learned about your finances to plan for the future?
By Kate Winget
-
What Claims Adjusters Are Thinking vs What They're Saying
After a natural disaster, few of us are at our best, but here's what to keep in mind when you're interacting with your insurance company's claims adjuster.
By Karl Susman, CPCU, LUTCF, CIC, CSFP, CFS, CPIA, AAI-M, PLCS
-
Looking to Make a Job Change? How to Stand Out Like a Pro
To make a strong first impression in interviews or when networking, skip your job title and work history and use an opening gambit that highlights your talents.
By Anne deBruin Sample, CEO
-
First 100 Days: Trump's Impact on Your Finances
Here are some opportunities to consider regarding investing, interest rates and tax cuts as the financial landscape shifts under the new administration.
By Daniel Razvi, Esquire
-
What Would Happen if You Put Your Tax Refund in an IRA?
Not only could you get a tax break, but the compounding effect over 35 years could turn the average refund into nearly $14,000.
By Romi Savova
-
Children Can't Afford to Fly the Nest? Here's How to Help
The high cost of living means more adult children are staying at home. Here are four ways to help financially so they can eventually spread their wings.
By Kelli Kiemle, AIF®