Investment Service in Denver Explains Wealth Managers vs. Investment Managers
Ponder how a professional investment service in Denver can make a difference to your finances. As you do, you’ll eventually wonder about the difference between wealth managers and investment managers. Considering trusts, diversification, and risk management, wealth and investment services in Denver are complex, and these two services often overlap.
How Wealth Managers and Investment Managers are Different
Although it may seem insignificant on the surface, when you want to solidify your financial position and plan for retirement, the differences are key.
Generally, wealth managers oversee a broad range of financial topics, handling the complexities of how investments, taxes, and retirement intermingle. Investment managers focus on providing an investment service, working to help you accomplish your financial goals with your assets.
Wealth Managers Provide an Investment Service in Denver
A wealth manager may simply be called a financial advisor or a consultant. They help you develop and implement an overall financial picture. These services go beyond managing a portfolio. Your wealth manager may offer services like:
- Investment management
- Retirement planning
- General accounting assistance
- Tax services
- Philanthropy advice
- Estate planning
Many wealth managers provide overall investment service in Denver, while others specialize in a few areas. Some work with firms with several team members, each with specialty areas.
Wealth management services are helpful if you want to get a handle on your current financial picture and create a plan for your financial future. Consider consulting with a wealth manager if you have goals like:
- Making sure you have enough funds to retire
- Minimizing tax obligations on your business income
- Decreasing estate or inheritance taxes
- Making sure you have insurance protection for your family and business
Wealth managers also help you formalize your financial goals, implement investment options to optimize your wealth, and more.
Your wealth manager begins the process with information about your finances. Before your first meeting, put together documents such as:
- Current investment portfolio
- Retirement plan statements
- Current estate planning documentation
- Prior tax returns
- Insurance policies
- Financial statements for your businesses
Often, they will review these documents before your meeting to get a complete picture of your financial situation. Then, when you do meet, your conversation can focus on your financial goals rather than your current investments.
Your Unique Financial Situation
Your unique financial situation is not only about where your money is or how much you pay in taxes. For example, you could decide that your retirement plan is to make sure you have enough and pay for your grandchildren’s college education. Or perhaps in retirement, you want to set up ongoing charitable donations. Your wealth advisor will work with you to create a comprehensive plan that addresses all of your concern areas and many more.
As part of an investment service in Denver, your wealth manager oversees all of this and lets you know when it is time to shift the plan.
Investment Managers Provide an Investment Service in Denver
Investment managers provide an investment service that is a subset of what your wealth manager offers. This investment service in Denver focuses on your assets. A manager handles your investment management tasks.
Your investment manager helps create a financial portfolio by purchasing and selling assets on your behalf. They analyze the options and suggest which investments are good options for you. Most investment managers offer options like stocks and bonds or mutual funds.
As part of your investment service in Denver, your manager will:
- Monitor market trends
- Provide recommendations to add to your investment portfolio
- Make changes to holdings to manage the risk in your portfolio
- Buy and sell on your behalf based on your predetermined investment plan
Based on your risk tolerance, your investment manager recommends investments and helps you buy and hold them. To determine your risk tolerance, you may need to discuss your overall financial goals with your investment manager. Still, their focus remains on how your assets fit into that picture. When you want to invest a significant sum of money, hiring an investment manager can be a wise idea.
Key Takeaways
Wealth managers and investment managers can both provide valuable services and many of those investment services in Denver overlap. Our team offers both services, so we provide insights at both levels.
