Unpacking Wealth Management And What It Means For Investors

Making and retaining wealth is a dream for every person. People wake up daily to go to work with the hope of generating and retaining wealth. One way to make wealth is through investing, and there are various channels that people can invest in and make wealth.

As people strive to make wealth, cases of Kenyans losing millions of shillings by investing in fraudulent projects have been on the increase. Some of the sectors that Kenyans have fallen victims are real estate as well as unregulated funds. Despite warnings and public outcry, people are still losing money.

Financial analysts attribute the continuous loss of money by Kenyans to fraud investments to the majority of them not consulting experts such as wealth managers. They end up investing in sectors where their hearts are not.

What is wealth management? How important is wealth management in terms of guiding people on how to invest their money?

Wealth management is an investment advisory service that combines other financial services to address the needs of affluent clients.

According to Investopedia, wealth management uses a consultative process, where the advisor gleans information about the client’s wants and specific situation

Nerd Wallet says wealth management is the highest level of financial planning services. The platform says that wealth management generally includes comprehensive investment management alongside financial advice, tax guidance, estate planning, and even legal assistance. The type of service offered by a wealth management firm is best suited to affluent clients.

In a snapshot, a wealth manager should be able to assist with all of your financial planning needs, up to and including, for example, managing the tax ramifications of business income and setting up a donor-advised fund for your charitable contributions.

In Kenya, for instance, I & M Bank has unveiled its Wealth Management and Advisory Business, tailored towards driving business growth through revenue diversification. The service, as per our definition of Wealth Management, is targeting high net worth and premium customers and potential customers, will be offered through I&M Capital, a subsidiary of the I&M Group PLC, which is also the holding company of I&M Bank Ltd and is a licensed fund manager by the Capital Markets Authority.

The offering comprising of Customized investment solutions, Asset Management, Retirement Income, and Financial Planning seeks to help clients diversify their assets to balance their financial risks.

Stay tuned for a series of pieces on Wealth Management. Drop us a comment.

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