As a successful individual who has accumulated wealth, the question isn’t whether you need professional guidance to grow and preserve your wealth. It’s about choosing the right financial professional you can trust to help you pursue your financial goals.  

The process starts when you ask yourself: 

  • What type of advice and services do I need?
  • Who can I trust to provide that kind of leadership?
  • What are my criteria for selecting the right type of professional to help me?
  • Should I select a financial advisor or a wealth manager in Nashville? 

In this blog post, “Your Money, Your Choice: Financial Advisor or an Experienced Wealth Manager in Nashville,” we’ll delve into the distinctions between these two roles, shedding light on their services, expertise, and suitability based on your current financial needs and goals. 

This article will equip you with the knowledge you need to make an informed decision when you select a financial advisor or an experienced wealth manager in Nashville.

Read our popular Quick Guide, “Wealth Management in Nashville, TN.”

At first glance, financial advisors and wealth managers appear to provide the same services. They both offer financial advice to help enhance your wealth and typically possess a fundamental understanding of the financial markets. The terms are often used interchangeably, but they generally refer to different levels of service and areas of expertise. 

The reality is how they function, and their approach to managing your wealth can be as different as night is to day.

“Strength lies in differences, not in similarities.”

Stephen Covey

Here’s a closer look at the distinctions between a financial advisor and a wealth manager:

Financial Advisors:

The term financial advisor is a broad umbrella term for a financial professional who advises clients on their finances. This can cover various topics, from retirement planning to investing, budgeting, and debt management. 

These professionals can have a variety of different backgrounds and specializations. They can be paid with fees (a percentage of assets under management, an hourly rate, or a fixed fee), commissions on the products they sell, or a combination.

One of the primary roles of a financial advisor is to evaluate your financial circumstances, needs, and goals before making recommendations. This typically involves gathering information about your financial situation, including income, expenses, liabilities, and assets. It also includes understanding your financial objectives, risk tolerance, investment preferences, and goals. This is then used to develop a financial plan that outlines the strategies and products to help you pursue your financial goals. 

A financial advisor can also be involved in implementing your financial plan. This may involve purchasing or selling financial products like stocks, bonds, mutual funds, or insurance.

All financial professionals must adhere to suitability standards and ethics. The level of suitability is based on how they are compensated. If a financial advisor is receiving a fee from you for their financial advice and services, they will act as a fiduciary. If they are earning a commission from the sale of a financial product, like a mutual fund, they will fall under the suitability standard.

It pays to remember anyone can claim to be a financial advisor. It can refer to a firm or a professional. The ideal financial advisors will be registered financial fiduciaries who are compensated with fees by their clients.

Wealth Managers:

A wealth manager is a financial professional who typically works with high-net-worth individuals to help manage and preserve their wealth. They provide multiple services that address a wide range of their client’s financial needs. Following are some key responsibilities and roles of a wealth manager:

  • Wealth managers create comprehensive financial plans considering your income, expenses, financial goals, risk tolerance, and future needs. They help you plan for retirement, children’s education, and other significant life goals.
  • They help you identify investment opportunities that align with your risk tolerance and financial goals. This includes diversifying the investment portfolio, balancing risk and return, tax loss harvesting, and constantly monitoring the markets to adjust strategies.
  • Tax planning is another function that wealth managers focus on.  They help minimize the taxes that can erode your wealth. This includes using tax-efficient investment strategies, offsets, and other tax-planning tactics.
  • Wealth managers work with you to plan the distribution of your wealth after the demise of the surviving spouse. They often collaborate with estate planning attorneys to provide input for creating wills and trusts and the succession of family businesses.
  • A wealth manager can identify and mitigate financial risks that impact your wealth. This includes insurance products: Long-Term-Care, life, disability, health, property, and other wealth protection strategies.
  • Wealth managers can develop robust retirement plans that assess your income sources, planned (and unplanned) expenses, lifestyle choices, health care needs, inheritances, and longevity.
  • Many successful individuals wish to give part of their wealth to charitable causes. A wealth manager can help set up charitable trusts or foundations and advise on tax-efficient giving practices.
  • Wealth managers often coordinate with other professionals who serve their client’s financial needs. For example, Attorneys, CPAs, and personal bankers help ensure a holistic approach to managing wealth.

Given their clientele and the broader scope of services, experienced wealth managers usually require a higher minimum investment amount than the one required by a typical financial advisor. The expectation is wealth managers have more specialized knowledge, particularly in disciplines that impact wealthier clients, and they often provide a more personalized level of service when collaborating with your other trusted advisors.

 

 

The Right Fit for the Millionaire Next Door-A Personal CFO

The choice between a financial advisor and a wealth manager will largely depend on your financial needs, the complexity of your financial situation, and your personal goals. A wealth manager could be the best choice if you are a high-income earner with substantial assets, significant income streams, and complex family situations. 

As experienced Nashville wealth managers, our clients frequently express the need for a financial professional to act as their Personal Chief Financial Officer. They seek a wealth management team that can provide individualized advice and direction to assist them in safeguarding and enhancing their wealth while creating a plan rooted in a life of substance harmonizing with their goals, ethics, and principles.

As your dedicated Personal CFO, we concentrate on understanding your distinctive goals, necessities, and dreams. Collaborating closely with you, we formulate a holistic wealth management strategy that reflects your vision for an enriching life of purpose.

We also help facilitate an all-inclusive estate and legacy plan that maps out the disbursement of your assets to those who are most important to you.

Our Personal CFO services aid you in structuring your estate, creating education savings plans for your children and grandchildren, and establishing trusts and other financial tools that can enrich your loved ones when you are gone.

We also assist our clients by designing methods to leverage their wealth to support causes close to their hearts. As a personal CFO located in Nashville, TN, we can recommend strategies that help you support your philanthropic interests. Our advice extends to expanding your impact and the most tax-efficient methods of donation while endorsing the organizations you stand for.

At Silberman Wealth Strategies, our role transcends mere wealth management. As your Personal CFO, we act as your financial advocate. Whether protecting your loved ones, contributing generously to causes you champion, or making a positive difference in the world, our Personal CFO services play a pivotal role in pursuing these aspirations.

If you are looking for a wealth management team that empowers you to pursue a life of significance, financial stability, and impactful philanthropy, consider contacting us today

 

 

The views stated in this piece are not necessarily the opinion of Cetera Advisor Networks LLC and should not be construed directly or indirectly as an offer to buy or sell any securities. Due to volatility within the markets, opinions are subject to change without notice. Information is based on sources believed to be reliable; however, their accuracy or completeness cannot be guaranteed. Past performance does not guarantee future results. Cetera does not offer direct investments in commodities. Converting from a traditional retirement account to a Roth retirement account is a taxable event. A Roth IRA offers tax free withdrawals on taxable contributions. To qualify for the tax-free and penalty-free withdrawal of earnings, a Roth IRA must be in place for at least five tax years, and the distribution must take place after age 59½ or due to death, disability, or a first time home purchase (up to a $10,000 lifetime maximum). Depending on state law, Roth IRA distributions may be subject to state taxes. Re-balancing may be a taxable event. Before you take any specific action be sure to consult with your tax professional. The return and principal value of bonds fluctuate with changes in market conditions. If bonds are not held to maturity, they may be worth more or less than their original value

Registered Representative offering securities and advisory services through Cetera Advisor Networks LLC, member FINRA/SIPC, a broker/dealer and Registered Investment Adviser. Advisory services also offered through SILBERMAN WEALTH STRATEGIES, INC. Cetera is under separate ownership from any other named entity. Located at 320 SEVEN SPRINGS WAY STE 250, BRENTWOOD, TN 37027

For a comprehensive review of your personal situation, always consult with a tax or legal advisor. Neither Cetera Advisor Networks LLC nor any of its representatives may give legal or tax advice. All investing involves risk, including the possible loss of principal. There is no assurance that any investment strategy will be successful. Some IRA’s have contribution limitations and tax consequences for early withdrawals. For complete details, consult your tax advisor or attorney. Distributions from traditional IRA’s and employer sponsored retirement plans are taxed as ordinary income and, if taken prior to reaching age 59 ½, may be subject to an additional 10% IRS tax penalty. A diversified portfolio does not assure a profit or protect against loss in a declining market.