How a Private Wealth Manager Differs from a Financial Advisor

A financial services firm, Worden Capital Management, LLC offers Private Client Services as a part of its menu of options. Based in Garden City, New York, Worden Capital Management LLC provides its clients with strategies for building wealth, or wealth management.

Today’s consumer can access financial services assistance through a private wealth manager or a financial advisor. While both assist their clients with making sound financial decisions, the two professions differ in a few ways.

One difference in the two is the type of clients each serves. A financial advisor might work with clients who make between $50,000 and $1 million while a private wealth manager works with high-net worth individuals with assets up to $20 million.

Another difference between the two is in the scope of their work. A private wealth manager oversees a client’s assets under one portfolio while a financial advisor outsources this job to other financial professionals.

The number of services offered also differs slightly. Both offer basic financial planning, investment management, and some tax planning. However, the private wealth manager takes a deeper, comprehensive, proactive approach to assisting the client with his/her financial goals.

Finally, the way each professional assesses fees differs as well. Wealth managers typically charge fees based on assets under management (AUM), and financial advisors have different methods for charging fees, including the AUM method. Another method includes charging a one-time fee for services.