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How does asset management differ from wealth management?

Rhonda Simony

Asset management and wealth management are two different types of managing money. Both of them deal with money, but the way they do it is different.

Asset management means managing things that have value, like houses, cars, or stocks. The goal of asset management is to help people make smart decisions about their assets, so that they can make money from them in the future. For example, if someone has some money that they want to invest, an asset manager can help them choose which stocks to buy. By picking the right stocks, the person can make more money than they would have if they'd invested the money on their own.

On the other hand, wealth management is about managing people's money overall. Usually, this means managing large sums of money that wealthy people have, like millions of dollars. The goal of wealth management is to help rich people keep their money safe and invest it wisely. Wealth managers do things like creating financial plans, investing in various things, and managing risks.

So, in short, the difference between asset management and wealth management is that asset management is about managing specific assets, while wealth management is about managing a person's overall wealth. Both are important to help people get the most from their money and make smart financial decisions.