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What Is Wealth Management?

It’s difficult to obtain significant wealth. It’s even more difficult to maintain and expand it. Many high-net-worth individuals know the challenges of managing their wealth to help it continue to grow while aligning with their financial objectives. From the time needed to manage assets to understanding how market forces could impact holdings, many wealthy individuals simply aren’t equipped to manage their wealth.

That’s why Cathay Wealth Management offers a range of fiduciary services intended to fill that gap for wealthy individuals without requiring their constant oversight. Let’s take a look at the basics of wealth management as well as the services typically used by high-net-worth individuals.


What Is Wealth Management?

Wealth management is a series of services designed specifically to help high-net-worth individuals (HNWI) manage their wealth and pursue their financial goals. HNWIs often don’t have the time or expertise to manage their own wealth optimally, meaning working with a qualified financial advisor can help them safeguard their wealth, expand their holdings, and achieve other short- and long-term financial goals.

Some of the benefits of private wealth management include:

  • More focused attention: A Financial Advisor will take the time to learn your unique financial circumstances to build a personalized approach that reflects your risk tolerance, considers your assets holdings, and helps you achieve unique goals.
  • Generate additional income: A Financial Advisor will help you build a portfolio that fits your needs and requirements. This puts your wealth to work for you, helping you generate more revenue while staying below your risk tolerance threshold.

High-net-worth individuals are those who have more than $5 million in liquid assets, according to the Corporate Finance Institute. Those with significant wealth below that figure are categorized as super affluent and mass affluent, depending on the amount of wealth they have. While wealth management services have traditionally been used by HNWIs, it is becoming a more desirable set of services for wealthy individuals that don’t cross that $5 million threshold.


How Wealth Management Works

Wealth managers lead the day-to-day management of your wealth and asset holdings. They make decisions, with your agreement, that aim to maintain and increase the value of your wealth while ensuring you’re able to achieve your short- and long-term financial goals. They stay in constant communication with you to keep you abreast of their moves and decisions, so you understand how your wealth is being managed, giving you the chance to intervene as necessary.

Wealth management is a critical service for many HNWIs. Managing wealth can be a full-time job unto itself, and HNWIs often don’t have the time to research the market, identify smart investment opportunities and make appropriate adjustments as economic conditions change. Many of them came into their wealth through hard work or inheritance, meaning they often don’t have the experience to properly manage their wealth for maximum value.

Wealth managers take much of the guesswork and uncertainty out of maintaining and increasing wealth. They are dedicated professionals trained to handle all types of wealth and deliver financial outcomes that match your goals and circumstances.


The Role of Wealth Managers

Wealth managers work with high-net-worth individuals to understand their unique financial circumstances, financial goals, risk tolerance, and other information to help them build a wealth management strategy that fits their needs. Their services typically include estate planning, insurance services, wealth planning, portfolio optimization, and more.

Wealth management is not a one-and-done service. Wealth managers stand by their client’s side throughout the duration of their partnership, adjusting their management advice and action depending on the client’s changing financial circumstances as well as larger changes in the economic landscape.


Wealth Management Service Offerings

There are numerous types of private wealth management services available to high-net-worth individuals. Some of the most widely used include:

Asset Management

Wealth is not static. Assets need to be properly managed to ensure they continue delivering value and contribute to the growth of wealth over time. Financial Advisors oversee the acquisition and trading of investments and other assets to ensure you earn value from your wealth while also keeping risk within acceptable ranges.

In line with their fiduciary responsibilities, asset managers have to stay abreast of all possible macroeconomic factors and market forces that could impact on your wealth.

Portfolio Optimization

Financial circumstances and objectives change over time. You might acquire additional wealth that increases the amount you’re willing to invest, or life changes might cause your risk tolerance to fluctuate. Wealth managers serve as dedicated financial partners that help identify the proper asset distribution and allocation to help you build a financial plan that achieves your goals.

As financial circumstances and goals change, wealth managers will work with you to adjust your portfolio to better reflect your new requirements, putting you in a more advantageous position to realize your financial objectives.

Estate Planning

Many HNWIs want to leave a lasting legacy after they’re gone, devoting large portions of their wealth to charitable organizations and causes that align with their larger societal visions. Some also want to ensure their children and grandchildren are financially secure and can pursue their dreams in life without undue financial burden.

Wealth managers can help you plan for these financial arrangements before the time comes. They can work with you to create trusts and identify beneficiaries, and make other arrangements to respect your after-death wishes.


Discover Cathay Wealth Management’s Services

Wealth management is especially important in an uncertain economic environment. HNWIs have to put the proper safeguards and plans in place to ensure their wealth is in the best position to grow and deliver long-term value despite changing economic conditions.

At Cathay Wealth Management, we offer a range of wealth management services to help our clients pursue their financial goals with minimal risk exposure. Our wealth management services include investment IRAs, mutual funds, financial planning, and other products designed to match your financial circumstances.

Reach out to our team today to learn more about our wealth management services *.



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This article does not constitute legal, accounting, or other professional advice. Although the information contained herein is intended to be accurate, Cathay Bank does not assume liability for loss or damage due to reliance on such information.

* Wealth management services does not assure a profit or protect against loss in a declining market.


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