Investment and wealth management are terms commonly used in the financial realm, but what exactly do they mean? 

Depending on your financial situation, stage of life, and long-term goals, your strategic financial planning will likely focus more on investment or wealth management. Therefore, it is helpful to know which of these two types of financial planning strategies will benefit you the most. 

An expert wealth management services provider like Saddock Wealth can guide the way when it comes to all of the intricate aspects of wealth and investment portfolio management. For now, let’s take a closer look at these two seemingly interchangeable terms and how they can play a role in your financial health and lifetime goals. 

Defining Investment Management 

In its simplest terms, investment management encompasses growing and managing your investment portfolio, focusing on asset allocation, portfolio tracking, and market strategies. These efforts are designed to increase your investment portfolio’s value over time in conjunction with your long-term goals. For example, establishing a comfortable retirement or a substantial estate to pass on to your loved ones are prime examples of investment management.  

Defining Wealth Management 

Wealth management, on the other hand, is a more comprehensive approach to your finances. While it certainly includes investment portfolio management, it also looks at all aspects of your income and expenses. These financial elements evolve over time and are very much individualized. But they can include college saving goals, estate planning, tax strategies, insurance needs, retirement savings, and reviewing the balance between your income and expenses. 

Investment and Wealth Management Overlap 

Notably, there is some overlap between investment and wealth management. For example, managing your investment portfolio is part of wealth management as it affects your overall financial well-being. Similarly, wealth management decisions—like estate planning or tax strategies—can impact how and where you invest. 

For many people, the best approach isn’t one or the other but a hybrid solution. A wealth manager who knows investment strategies can ensure your financial decisions are aligned and work towards helping you fulfill both short and long-term goals. This balance allows you to grow your wealth while simultaneously protecting and planning for the future. 

Which Approach Is Right for You? 

Even if the differences and areas of intersection between wealth management and investment management are apparent, choosing the right approach for your unique situation can still be challenging. 

Here are a few steps you can take to determine whether you should focus on investment management, wealth management, or some combination of both: 

• Assess your financial goals – Review your financial goals and determine where they rank in your priorities. For example, do you want a more extensive nest egg decades down the road for retirement, or are you looking to grow your investments and income in a shorter timeframe? 

• Consider your risk tolerance. Time and risk tend to go hand-in-hand, so knowing your risk tolerance will also help determine whether you should focus on investment portfolio or wealth management. 

• Consider your financial complexity—High-net-worth individuals or people with more complex financial situations often benefit more from wealth management. This is because wealth management takes a more holistic approach and incorporates all moving parts and assets in developing a long-term plan. 

• Consider hybrid solutions – You do not have to exclusively pick a wealth or investment management strategy to pave a successful path forward. A financial expert like Saddock Wealth can craft custom hybrid strategies tailored to your unique financial situation and future fiscal aspirations.  

Reach out to us Today to Start the Conversation 

You can get a head start on achieving your financial goals by connecting with the experts at Saddock Wealth. From saving for your children’s education, to building a strong retirement safety net, and enhancing your portfolio health, Saddock Wealth can help. 

Connect with us today. Together, we will craft a detailed plan that will pave the way to fulfilling your financial goals. You do not have to do the hard work of deciding between wealth management and investment management. With an expert like us at your side, we can help you create a plan that incorporates both strategies and ensures years and decades of benefits.