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In these times there have been many growing economic activities in the nation, starting to show potential signs that it could breed a new set of millionaires. This includes both the educated and the non-educated, old and young, male and female – and those who are financially literate and illiterate. They come from a wide range of backgrounds and businesses, though most are from oil, gas, banking, sports, manufacturing and transportation.
VISION 2020 proposed that the present president will put Nigeria among the top 20 economies of the world by that year, and the number of millionaires is constantly growing.
However, the main problem is that the creation of wealth can pose a number of problems when it comes to maintaining that wealth. This is why it's so important to find financial planners who are experts in wealth management. This is a novel idea, and may sound strange to many people – many citizens do not understand the place of these services in current economic affairs. However, the president saw that there is a dire need for these services and called on all Nigerian businesses living in Switzerland to come back home and offer a helping hand to reaching his important dream.
These kind of services are already established in more developed countries, accounting for the giant leaps that these nations have seen in terms of wealth. This hasn't just happened down to chance, but empires abroad have managed to last for over 40 years and counting. A phrase like private wealth management is actually quite common in countries like this, denoting a specialized service instead of a service that is generally offered. A foreign service provider, Morgan Stanley, stated that private wealth management is there for those who have investments that are worth over $20 million.
It is clear to see that you cannot over emphasize the importance of financial planning. They have a central role in your affairs, much like a coach. The team involves lawyers, insurers, bankers, stockbrokers, real estate brokers and more. And all of their duties depend on the instructions.
It is this duty which separates this service from more traditional financial services. For a complete beginner, having a guide you can trust really helps you to reach your financial destination. If you have gathered a few million then a strategy can even multiply this! There have been many cases reported when million dollar empires have disintegrated completely, which is why it's important to make sure that the management of wealth is up to scratch. The single work of a wealth management financial planner goes towards ensuring that the lifespan of the wealth is always protected, helping to prolong the wealth of the nation as a whole. This will ensure that the company never dissolved, and the future is always taken care of.
Wealth management can be referred to as an advanced discipline relating to advice in terms of investment which incorporates specialist monetary services and financial planning. The main objectives are providing families dealing with services in retail banking, legal resources, investment management, and taxation advice goals to sustain and grow long-term wealth. Monetary planning can help the individuals who are accumulating wealth or have already done so.
Wealth management can be exemplified through self-governing advisors or huge corporate entities such as Citigold of Citibank and the other extensions regarding services relating to retail banking designed for focusing on customers dealing with retail worthy of high nets. Customers of such type are likely to be categorized as ‘upper retail' or ‘mass affluent' clients owing to net worth of theirs, potential products owned by them from bank, assets of their under management, and many other segmentation methods.
Banks create exclusive services, branches, and other advantages for retaining or attracting the customers who can earn more profits in comparison with the customers detailing with retail banking. It should, however, be noted that clients of wealth management cannot be termed as ‘Private Banking' clients as they do not justify the criteria of services of banking provided by private banks.
Background
The term ‘Wealth Management' traces its origin in the 90s in the United States through Insurance Companies, banks, and Broker Dealers. The evolution of wealth management traces to high-net worth monetary consulting for people who happen to be topmost clients of any of the firms, to high level private banking which makes provisions for different kinds of investment, bank products, and insurance. With the passing of Glass-Steagall Act in the year 1999, monetary firms have been able to make arrangements for all the 3 services from a single office.
With emergence of wealth management in the form of professional service, along with career opportunity, educational programs like AAFM, i.e. American academy of Financial Management certified by CWM and Chartered Wealth Manager plan are arranging for modified wealth management training to individuals and corporations alike. Wealth Management is used to serve the affluent community, along with Chartered Monetary analysts, certified managers of wealth, Public Accountants, government-licensed lawyers, insurance professionals, etc.
Criteria for various countries
In the US, only CPAs and lawyers possess the license provided by government for providing advice related to tax or legal matters on complicated wealth management, tax law, estate planning, retirement, or even other legal matters like divorce or business management.
In Australia, the rules regarding wealth management are such that only those advisers who qualify under PS 146, i.e. Policy Statement no.146, outlined under Financial Services Reform Act of the year 2001, administered and governed by ASIC, i.e. Australian Securities Investments Commission are entitled to provide advice regarding financial products to the retail clients.
Job profile
People engaged in the wealth management generally work for brokerage firms, investment banks, accounting firms, law firms, trust departments, consumer banks, or portfolio management and investment firms. Smaller ones like registered advisors might also provide broad array regarding services pertaining to family and office.
Products dealt with in wealth management include stock trading and stocks, investments linked with equity, derivatives and products relating to structured investment, foreign exchange, unit trusts and mutual funds, investments and management of property, etc. Alternative investments with respect to wealth management include art, wine, precious metals, etc.