Wealth Advisor vs. Financial Advisor: What is the Difference?

25 January 2024

When it comes to planning for your financial future, having the right guidance can be a game-changer, particularly in the context of making informed decisions that can help with financial security and growth.

This is where professionals like Wealth Advisors (WAs) and Financial Advisors (FAs) come into play, offering invaluable guidance to help you make informed decisions as you navigate your financial journey. While at face value, the differences between these roles are clear, discerning which one is the right fit can be intricate for those new to the field.

Moreover, when deciding which type of financial professional to work with, it's worth noting that personal preference isn't the sole determining factor. This makes understanding the nuances of their roles key to choosing the right advisor who aligns with your financial goals and aspirations.

So, which one of these professionals can help you achieve your financial aspirations?

What does a financial advisor do?

A financial advisor is a multifaceted professional whose role extends beyond just offering investment advice. These advisors provide comprehensive guidance, crucial for making informed financial decisions. Their expertise covers areas such as retirement planning, tax strategies, savings, and more. Key among their services is creating effective investment strategies tailored to each client's unique financial situation and goals.

Financial advisors also work with a diverse range of clients, from individuals just starting to build their wealth to those with more substantial assets. While some advisors may specialise in certain areas, a generalist financial advisor offers a broad spectrum of financial advice, addressing the most pressing concerns of their clients, such as navigating life's financial milestones like buying a home.

What does a wealth advisor do?

Wealth advisors stand out in the financial advisory landscape due to their specialised focus on clients with substantial assets. Typically serving high-net-worth and ultra-high-net-worth individuals, wealth advisors manage significant wealth, tailoring their services to the unique requirements of these affluent clients.

Their role encompasses a broad spectrum of services, including comprehensive financial planning, investment and wealth management, and more.

Similar to financial advisors, at the core of a wealth advisor's approach is a deep commitment to understanding and addressing the individual needs of each client. This personalised service ensures that every aspect of the client's financial life is meticulously managed and aligned with their overall financial goals.

What is the difference between wealth and financial planning?

From the above, it's clear to see that wealth and financial planning, while similar in their aim to enhance financial security, differ primarily in scope and client focus.

Wealth planning is an extensive process tailored for high-net-worth individuals and families, encompassing a wide range of sophisticated financial services. The focus here is on managing and growing significant wealth while ensuring long-term financial stability and succession.

Financial planning, in contrast, is more accessible and broad-based, catering to a diverse clientele. It involves creating a roadmap for financial goals such as retirement planning, saving for education, and basic investment management. Financial planning is about establishing a solid foundation for financial well-being, regardless of the client's current wealth status.

So, do you need a private wealth manager or a financial advisor?

Deciding on your path: Selecting between a wealth manager and financial advisor

Choosing between a wealth manager and a financial advisor largely hinges on your financial assets and the prevailing industry norms. But at the same time, there is no denying that the choice of a financial professional is still personal.

Therefore, to decide which path is right for you, there are several factors to consider.

For instance, you’d want to look into their fee structures, investment philosophies, and the professional’s reputation rather than merely the title they hold. Of course, all of these aspects will have to be considered in addition to your investment needs and the level of personalised service you seek.

Why consider StashAway’s wealth advisor services

Say you've decided to seek the help of a private wealth advisor — what does having a dedicated wealth advisor with StashAway mean for you?

With StashAway, this decision marks the beginning of a unique financial journey tailored specifically to your needs as an accredited investor. You'll be paired with a dedicated Wealth Advisor, a professional who's not just a guide but a partner in your wealth management. This advisor will work with you to ensure your investment portfolios, whether they're within StashAway or elsewhere, are optimally diversified and aligned with your long-term wealth goals.

And if you are specifically seeking wealth advisory solutions as an Accredited Investor, look no further than StashAway Reserve.

A wealth management offering designed to address the challenges of liquidity and diversification in the private market, it is tailored to the growing needs of high-net-worth individuals who have been traditionally underserved. As a result, it offers Accredited Investors investment opportunities at significantly lower entry points than usual, thus democratising access to sophisticated options.

With StashAway Reserve, you stand to benefit from:

1. Exclusive investments

With access to private equity (PE) and venture capital (VC) funds, our Wealth Advisors open doors so that you can tap into high-performing, diverse portfolios that often outperform traditional markets. These investments also offer the added advantage of being less market-correlated, providing a buffer against market volatility.

Furthermore, through our collaboration with the XA Network, you get a unique chance to delve into Southeast Asia's burgeoning startup scene. This partnership allows investors to engage with promising early-stage startups, leveraging the expertise of top executives from leading global companies like Google, Grab, and Netflix. With StashAway Reserve, a single investment can bring exposure to 10 to 20 promising startups, opening new avenues for wealth-building in dynamic sectors.

2. Accessibility and transparency

StashAway Reserve lowers the entry barriers for wealth management, enabling investments in private equity and venture capital starting from just $50,000 USD, significantly less than traditional minimums.

In addition, our approach is centred on transparency and affordability, with no fees for Reserve or Wealth Advisory services. For angel investing, a straightforward fee structure includes a management fee on invested funds and a performance fee on profits. In private equity and venture capital, a simple annual management fee on committed capital is applied without any additional fees on your annual budget.

3. Personalised wealth strategies

StashAway's Wealth Advisor services offered when you become a Reserve client are designed to offer personalised financial guidance, ensuring that your financial plan is as unique as your goals. With our certified and trained Wealth Advisors, you receive unbiased, comprehensive advice tailored to your specific needs.

As a Reserve client, you are entitled to these exclusive benefits:

  • Yearly financial planning: Engage in annual sessions to create and maintain a financial plan that reflects your changing life circumstances and goals.
  • Bi-annual portfolio reviews: Receive detailed evaluations of your portfolio every six months to ensure alignment with your financial objectives.
  • On-demand access: Your assigned Wealth Advisor is available for consultations anytime via WhatsApp, email, or phone, providing flexibility and responsiveness to your needs.
  • Wealth discovery sessions: These initial consultations help us understand your financial landscape, including income, savings, investments, and your short-term and long-term objectives.
  • Risk profile assessment: Tailored to gauge your comfort with various levels of investment risk.
  • Holistic financial planning: Over two sessions, we collaboratively establish a comprehensive financial plan that encompasses all aspects of your financial life.

Embark on a tailored financial journey with StashAway

Embrace the opportunity to redefine your financial future with StashAway. Whether you're considering the meticulous strategy of a private wealth manager or the broad-based approach of a financial advisor, StashAway is equipped to meet your unique needs. Our dedicated Wealth Advisors are ready to guide you through every step of your financial journey with personalised strategies and exclusive investment opportunities.

If you're intrigued by the possibilities of sophisticated yet accessible wealth management, we invite you to explore StashAway Reserve. As a Reserve client, have your aspirations meet our expertise, creating a harmonious path towards your financial goals.

Connect with our advisors today and take the first step towards a financial plan that's as individual as you are.

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