Wealth manager vs. financial advisor: what is the difference?
Discover the key differences between wealth managers and financial advisors to determine which one is best suited to your financial situation.
A wealth manager is a type of financial advisor who focuses their services on wealth development, maintenance, protection, and long-term growth.
A wealth manager is best suited to those who need help handling a large sum of money, such as a financial windfall or large investment.
Unbiased can match you with a financial advisor best suited to meet your needs. Answer a few simple questions, and we’ll find the right expert for you; your first consultation is free.
What is a financial advisor?
The Securities and Exchange Commission (SEC), which oversees the sector, reported last year that more than 15,000 registered investment advisors were operating in the US.
According to 2023 figures, there were also 628,392 registered representatives of FINRA, the organization responsible for regulating every broker and brokerage firm doing business with the US public.
Despite the impressive numbers, it’s worth remembering that not every financial advisor in the US specializes in wealth management.
Understanding the differences between wealth managers and financial advisors can ensure you receive the correct service, guidance, and advice.
Financial advisors are experts who offer a wide range of financial services to their clients. These include tax management, estate planning, retirement planning, investing, and insurance.
Many financial advisors intentionally offer a variety of services to meet the needs of different types of clients. Some, however, specialize in only a handful of areas.
Either way, all must be certified financial professionals who are qualified to advise in their chosen field.
What is a wealth manager?
A wealth manager is a type of financial advisor who centers their services around wealth development, maintenance, protection, and long-term growth.
This subset of the financial advisor occupation focuses on wealth and monetary growth rather than general advice.
Wealth managers are the type of professionals you would seek out if you need assistance:
Managing a windfall such as an inheritance
Investing a large sum of money
Handling significant amounts of cash using the safest, most secure and most sustainable strategies possible.
What is the difference between a wealth manager and a financial advisor?
The difference between a wealth manager and a financial advisor is relatively simple if you think of it like this:
A financial advisor may also be a wealth manager, but a wealth manager is not necessarily a financial manager.
The main difference between a wealth manager and a financial advisor is that a financial advisor offers a broad spectrum of financial services, while a wealth manager, as the name indicates, specializes in wealth.
If you are looking for general financial advice related to more day-to-day financial matters such as taxes, retirement, or insurance, you would likely benefit more from hiring a financial advisor.
If you are looking specifically to expand your wealth, a wealth manager is more likely to provide the support you need in managing your portfolio and increasing your net worth.
Do I need a wealth manager or financial advisor?
If you’re still not sure whether a wealth manager or financial advisor is right for your situation, consider the following scenarios:
You need help with debt repayment, taxes, retirement planning, or a personalized financial plan for funding education or a small business: You probably need a financial advisor.
You have recently come into some money or will do so soon and would like to invest, grow, and secure it in a specialized savings account: You probably need a wealth manager.
Knowing which option to choose, a wealth manager vs. a financial advisor is important. Your financial affairs should be handled with the utmost professionalism, and selecting the right expert for the job will mean a safer, more predictable, and ideally more lucrative outcome for you.
Where can I find expert financial advice?
Wealth managers and financial advisors may have similar qualifications, but their areas of specialization are distinct from one another.
Financial advisors offer clients an extensive range of financial services, whereas wealth managers focus more exclusively on growing and maintaining wealth.
You can find expert financial advice at Unbiased, where getting matched with a wealth manager or financial advisor is an easy and simple process.
Let us match you with the SEC-regulated financial professionals who suit your needs.
Content Writer
Andrew Michael is a multiple award-winning financial journalist and editor whose work has appeared in numerous newspapers, magazines, and online platforms, including The Times, Evening Standard Money, Financial Times, Shares, and Forbes Advisor.