DEFINITION
Private Wealth Management (PWM)
Private Wealth Management (PWM) refers to a set of financial and investment services provided to affluent individuals, such as ultra-high-net-worth individuals (UHNWs). Private Wealth Management covers services such as investment management, estate planning, tax advisory, retirement planning and so on.
Private Wealth Management providers will typically tailor their offerings to the client in order to help them grow, protect, and transfer their wealth effectively. They will typically also act with complete discretion, which is a major selling point for affluent clients.
Synonyms
Ultra-high-net-worth wealth management
Acronyms
PWM
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Synonyms
Ultra-high-net-worth wealth management
Acronyms
PWM
Examples
A private wealth management firm works with an ultra-high-net-worth individual in order to develop a comprehensive financial strategy. The client in question wants to grow their investment portfolio, plan a generational wealth transfer, and minimize tax liabilities.
The private wealth manager therefore creates a diversified investment plan, establishes tax-efficient trust structures and aids in the transition of wealth to the younger generation. Typically, this will be a long-term relationship and the private wealth manager can even assist in non-financial matters, such as vacation planning.
FAQ
What is the difference between private wealth management and regular financial advisory services?
Private wealth management is tailored specifically for ultra-high-net-worth individuals, offering a much higher level of personalization than a standard advisory service. PWM also addresses more complex financial needs that typically wouldn’t be covered under financial advisory.
How much money do you need for private wealth management?
Private wealth management services are typically reserved for ultra-high-net-worth individuals (those who have over $30 million in assets). High-net-worth individuals (those who have over $1 million) can also fall under consideration within regular wealth management.
What services are typically included in private wealth management?
Depending on the client in question, private wealth management can offer investment management, estate and legacy planning, philanthropic planning, risk management and others.
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