Assignment For PMCF8 Module 2:: 1. What Is Wealth Management? Explain Briefly

Assignment for PMCF8 Module 2:
1. What is wealth management? Explain briefly.
Wealth management is the utilization of processes, services and products

designed to grow, protect, utilize and disseminate one’s wealth. This is more
comprehensive than portfolio management in terms of financial planning. It covers a
client's entire financial condition, including investment management, estate and tax
planning, bookkeeping, retirement planning, and, in some situations, legal advice.
2. Enumerate and briefly explain the importance of wealth management.
Wealth Management is an important aspect of dealing with financial matters.

Most people put a large sum of money into savings in order to accumulate capital so
that they can provide financial security to their loved ones. It is also critical to develop
proper strategies in order to get a sense of where a person's savings can be put to use.
Wealth management services provide such services, in which a person can get a plan
for how to invest his or her money. And the wealth management advisory helps the
person in developing a financial plan that allows them to use their assets in such a way
that almost all of their financial objectives are met. Through sound investment policy or
effective tax planning, the advisory ensures that the money invested continues to
compound.
3. Compare and contrast asset management from wealth management.
Asset management concerns assets, including cash, stocks, bonds, and real
estate. Meanwhile, Wealth management concerns all aspects of wealth, including tax
issues, business ownership, and legacy issues that will affect your family for
generations. And Wealth management is reserved for those with high net worth. Asset
management, on the other hand, can be used by anyone. Even businesses can make
use of asset management ensuring that company assets are being used in the most
efficient way possible. Both wealth management and asset management employ a wide
spectrum of products, services and strategies and both services are personalized as per
the financial goals and situation of the person or entity.
4. Cite and discuss briefly the wealth management process.
There was a process in wealth management that will supports us in customizing

a plan based on your unique needs and desires. It consists of six stages which is the
first process is established client relationships, you will collect relevant financial data,
assess risk tolerance, and determine your financial goals and needs. The second
process is gathering data which you will identify your principal needs and work with you
to prioritize both short- and long-term goals. Then, you will analyze existing positions
wherein they will assess your current accounts and policies, looking closely for gaps or
inconsistencies. After that, you must present a detailed action plan and present an
action plan to come up your specific decisions regarding which financial tools are best
for your situation. The last process will be ongoing to monitor or always review and
reporting your portfolio to keep your objectives on track.
5. Briefly explain the steps involved in the preparation of wealth management

plan.
When preparing a wealth management plan, there was six steps that you need to
follow. The first step involves data gathering and a review of quantitative information or
background financial information of the clients. The second step is you seeks to identify
both financial and personal goals and objectives in order to track success and to
provide feedback so that strategies can be fine-tuned. Then you must analyze problems
and opportunities to develop specific solutions. After that, an action plan should be
created with appropriate strategies and tactics outlined in writing. And the last step,
always monitor or update to ensure that your action is successfully attained to your
financial objectives. It is better to daily review it to allow for any changes and allow
opportunity to provide for any changes to strategies or tactics.
6. Choose a certain financial institution which has a wealth management division
and explain its tasks and responsibilities.
Large U.S. financial institutions such as JP Morgan and Goldman Sachs run a

specific private wealth management business unit with investment specialists and client
advisors to cater to HNWI. Since wealthy individuals lack the time and knowledge to
manage their wealth efficiently, they consult with private wealth managers with
significant experience in managing finances for private individuals. The manager
designs an investment strategy and proposes investment products that are in line with
the client’s financial goals and risk tolerance. Most clients work with a single wealth
manager, who takes inputs from the client’s attorney, accountants, and insurance
agents.

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Assignment for PMCF8 Module 2:

1. What is wealth management? Explain briefly.

Wealth management is the utilization of processes, services and products

2. Enumerate and briefly explain the importance of wealth management.

Wealth Management is an important aspect of dealing with financial matters.

3. Compare and contrast asset management from wealth management.

4. Cite and discuss briefly the wealth management process.

There was a process in wealth management that will supports us in customizing

5. Briefly explain the steps involved in the preparation of wealth management

and explain its tasks and responsibilities.

Large U.S. financial institutions such as JP Morgan and Goldman Sachs run a

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