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Important Aspects of What a Wealth Management Firm Does

People who don’t know much about putting together a sound financial plan tend to turn to a comprehensive wealth management firm to make this happen. Wealth management firms are handling a huge chunk of business transactions taking place in the national and global economies.



What are the Key Facets of What Wealth Management Firms Do?

Their Goal is to Increase Their Client’s Wealth

It’s important to note that although various firms try to reach this goal with the use of different methods and means, their success is closely linked to their client’s monetary success.

They Could Work with Retail or Institutional Investors

While other firms exclusively work with retail investors, others only deal with the institutional types. In case you’re wondering, retail investors are individuals who are investing up to $5 million. On the other hand, institutional investors could be individuals or companies investing more than $5 million. Although you can also find wealth management firms that handle both types of clients, most of them exclusively focus on either of the two segments of the market.

They Usually Focus on Either Advising or Investing

When it comes to managing their client’s money, weal management firms use two types of approaches: the passive investing approach and the active management approach. Firms that use the passive investing strategy diversify their client’s money in a wide array of asset classes and teach their clients to make their own financial decisions to mitigate their risks. On the other hand, firms that use the active management approach try to maximize their client’s returns by engaging in aggressive buying and selling of investments.



Looking to Tap into a Wealth Management Firm?

If you want to learn more about wealth management firms and financial advising, get in touch with the business experts at 1879 Advisors to request an appointment today.

© 2020 by 1879 Advisors® which is the marketing name used by Bruderman Asset Management, LLC, an investment adviser registered with the SEC and which provides investment advisory products, and its affiliate company, Bruderman Brothers, LLC, member FINRA/SIPC through which securities are offered.

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