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Investing Insights - What is Wealth Management?

  • Jan 3, 2012
  • 2 min read

Updated: Sep 3, 2022


The term Wealth Management means different things to different people. Wealth management is, by definition, a holistic approach to understanding and providing solutions to all of the major financial challenges of an investor's financial life.


From a client family's perspective, this means having all financial challenges solved.


There are three essential components to true wealth management: 1. A consultative process to gain a detailed understanding of family's goals and their most significant financial wants and needs.

2. Customized choices and solutions including investment management, insurance, estate planning and retirement planning.

3. Delivery in close consultation to identify clients’ specific needs and how those needs change over time as well as proactively design solutions around those needs.


In its simplest terms, wealth management can be summed up using a single, all-encompassing formula:

Wealth management = investment counseling + advanced planning + relationship management (or WM = IC + AP + RM)

Investment counseling is the core offering and the foundation upon which the client relationship begins. Advanced planning addresses four key areas of financial needs that affluent investors have beyond investments: wealth enhancement, wealth transfer, wealth protection and charitable giving.


Relationship management focuses on three areas: fully understanding and meeting clients' critical needs over time; assembling and overseeing a network of financial experts to help meet client needs; working effectively with affluent clients' other professional advisors, such as their attorneys and accountants.

Wealth management breaks the familiar mold in which affluent individuals must contract with a range of professionals, each specializing in a single area: the investment advisor managing portfolios, the insurance agent selling life insurance, the accountant handling taxes and the attorney taking care of estate planning.


As high-net-worth individuals and families’ finances have grown ever more complex, this compartmentalized approach has become less appealing to those wishing to streamline their affairs.


Important Disclosure: Northland Wealth Management Inc. is registered with the Ontario Securities Commission as a Portfolio Manager.

This article is provided for general informational and educational purposes only and does not constitute investment advice, a solicitation, or a recommendation to buy or sell any security or investment product. The information contained herein is based on sources believed to be reliable as of the date of publication, but its accuracy or completeness is not guaranteed. Past performance is not indicative of future results. Any discussion of specific asset classes, investment strategies, or market conditions is general in nature and may not be suitable for your particular circumstances. Investment decisions should be made in consultation with a qualified advisor who understands your specific financial situation, objectives, and risk tolerance. Nothing in this article should be construed as a public offering of securities. Northland Wealth Management Inc. and its employees may hold positions in securities or asset classes discussed in this article.

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