To reach one’s financial goals today, consulting with a knowledgeable financial professional is very beneficial, if not essential. Despite certain distinctions, both asset management and wealth management aim to offer this service.
Asset management can be defined as the management of any asset that a person owns and values. However, in the financial world, this phrase is mostly used to refer to the management of a person’s investments, including stocks, bonds, and any other tool used to increase their net worth.
Wealth management has a more all-encompassing focus than asset management, which is more concerned with a client’s investable assets. In other words, it aims to address the person’s total financial status and offer recommendations for long-term wealth maximization and protection. Declaring that asset management is a subset of wealth management would be a straightforward approach to distinguish between the two.
