When it comes to matters regarding money or finances, it is always best to consult experts (or your bank) for guidance on how it should be managed to avoid setbacks in the future. In your conversations with your investment advisor, the word “asset” is usually heard. By definition, an asset means any property with high value. This value is usually reflected in your accounts – checking services, debit cards, margin loans, brokerage, etc. Because of these complexities when it comes to assets, your bank is responsible in handling investments on your behalf. In short, asset management is concerned with the proper and efficient organization, distribution and upgrading of these properties so that they will be used effectively.
However, there is one term that is usually confused with asset management, though both have the same function in properly handling the client’s money. That is wealth management. What makes wealth management different from asset management is that wealth management conducts in a broader scale. It does not only deal with the assets of an individual, but his or her whole financial life. This type of management plans and projects investments as to preserve and maintain their growth. It coordinates with legalities (i. e. since wealth can be divisible to the client’s family), retail, estate, and retirement.