What Is a Wealth Manager?

A wealth manager is a specialized financial professional who provides comprehensive services to high-net-worth individuals and families. Unlike traditional financial advisors who might focus on specific aspects of your finances, wealth managers take a holistic approach, addressing everything from investment management and retirement planning to tax strategies, estate planning and risk management. They typically work with clients who have substantial assets — often $1 million or more — and provide personalized guidance tailored to complex financial situations. Wealth managers coordinate with other professionals like accountants and attorneys to create integrated financial strategies that align with your long-term goals.

SmartAsset’s free tool can help you find a financial advisor who serves your area.

What Does a Wealth Manager Do?

As obvious as it sounds, wealth managers are in the business of wealth management. This is a set of services that combines several areas of personal finance into a single comprehensive package that’s designed to address the entirety of an individual’s financial life. In the end, the goal of wealth management is to grow and preserve wealth over the long term.

Every wealth manager and wealth management firm has its own set of financial services and specialties. These can cover a vast range of topics, which will give you the ability to select the manager that’s best suited to your needs. Here’s a breakdown of some of the more common offerings you’ll come across:

Investment advice and portfolio management
General long-term financial planning
Charitable giving or philanthropic planning
Estate planning
Trust services
Strategic tax planning
Family legacy planning
Philanthropic planning
Risk management and insurance planning
Retirement planning
Legal planning
Banking services

Additionally, a wealth manager may serve as the central point of contact for a client. This involves coordinating communications and relationships with their various financial experts, such as an attorney, accountant or insurance agent.

Who Typically Works With a Wealth Manager?

A couple seeking advice from their wealth manager.

Wealth managers primarily serve affluent clients who have large amounts of investable assets. These clients are typically referred to as high-net-worth or ultra-high-net-worth individuals. For reference, the U.S. Securities and Exchange Commission (SEC) defines a high-net-worth individual as someone who has at least $750,000 in assets under management (AUM) or has a net worth of $1.5 million or more.

Wealth managers usually require prospective clients to have a certain amount of investable assets before they agree to work with them. Account minimums vary wildly from firm to firm. However, they can often be anywhere from $5,000 up to millions of dollars.

What Fees Do Wealth Managers Charge?

Wealth managers typically charge fees based on a percentage of assets under management (AUM), with rates commonly ranging from 0.25% to 1.5% annually. This percentage often decreases as your investment portfolio grows larger, creating a tiered fee structure. For example, you might pay 1% on your first million dollars and 0.75% on amounts above that threshold.

The AUM fee model means wealth managers earn more as your portfolio grows, potentially aligning their interests with yours. This fee typically covers portfolio management, regular financial reviews, and basic planning services. Most wealth managers will deduct these fees directly from your investment accounts quarterly, making them somewhat invisible in your day-to-day finances.

Other wealth managers may charge fixed fees, hourly fees or some combination of the two. However, even if your wealth manager only charges a percentage of AUM, you may be paying more than just that. Percentage fees don’t account for the underlying expenses associated with brokerage services, funds and trading. The only exception to this is if the wealth manager uses a wrap fee program, which involves bundling all expenses into a single annual rate.

Beyond the wealth manager’s direct fees, be aware of underlying investment expenses like mutual fund expense ratios, trading costs, and platform fees. These additional costs can significantly impact your overall returns but aren’t always clearly disclosed in marketing materials. Always ask for a comprehensive breakdown of all fees before engaging wealth management services.

Don’t always assume wealth management fees are fixed. Many firms have flexibility, especially for clients with substantial assets or straightforward needs. Before signing any agreement, compare fee structures across several providers and don’t hesitate to negotiate better terms based on your specific situation and the complexity of services required.

How to Choose a Wealth Manager

Choosing a wealth manager is a similar process to picking a financial advisor. One of the first things to take note of is a wealth manager’s account minimum. This is often an indication of whether or not the advisor is a realistic option for you. Also, ask each wealth manager about their typical client base to get an idea of who they usually work with.

Furthermore, a wealth manager’s advisory certifications can demonstrate experience in certain areas, like financial planning. You should also review a wealth manager’s fees to get an idea of how much their services will cost you. Note whether they sell any third-party products for a commission, and if he or she is a fiduciary.

A good resource to look through is the firm’s Form ADV. All registered investment advisors (RIAs) file this document with the U.S. Securities and Exchange Commission (SEC) or a state securities authority. The Form ADV provides information on any of the firm’s past disciplinary issues, its client base and services and more.

Comparing Wealth Managers With Other Advisors

Since wealth managers are just one type of financial advisor, the financial advisor space would be a logical place to look for another option. Some common alternatives to a wealth manager are investment advisors, financial planners and financial consultants.

While each of these financial advisor categories differs in their specialties, they usually focus on a specific area of your financial situation. Conversely, wealth managers look at the full picture and manage all of your money holistically.

Like a financial planner, a wealth manager can help clients identify their objectives and map out a financial plan to achieve them. Unlike wealth managers, who typically help wealthy clients with more complex financial situations, financial planners serve many types of clients who have more generic needs.

Similar to investment advisors, a wealth manager can help clients select an investment strategy for their portfolios within appropriate asset allocations. While investment advisors zero in on this particular aspect, wealth managers also look at a client’s overall financial picture and provide financial planning and relationship management in conjunction with investment services.

Bottom Line

An individual researching the right wealth manager for his financial situation.

Wealth managers take a holistic approach, handling everything from investment management and retirement planning to tax strategies and estate planning—all coordinated under one roof. Unlike traditional financial advisors, wealth managers typically work with clients who have significant assets, often requiring a minimum investment of $1 million or more. They earn their compensation through fee structures that may include a percentage of assets under management, flat fees or commissions, depending on the firm. When selecting a wealth manager, it’s essential to verify their credentials, understand their fee structure, and ensure their expertise aligns with your specific financial goals.

Tips for Finding a Wealth Manager

Financial advisors and wealth managers alike can be great partners for anyone looking to get their financial life in order. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goal, get started now.
When picking a financial advisor or wealth manager, make sure they abide by fiduciary duty. This ensures that they will act in your best interest, no matter what. In addition, it could be valuable to figure out if a firm you’re looking at is fee-based or fee-only.
Consider what purpose you’d like your financial advisor to serve. For instance, if you need help figuring out how much to save for retirement, go with an advisor who has experience in that area and a relevant certification.