Finance: What Does a Personal Wealth Manager Do?

What does a personal wealth manager do? A personal wealth manager helps individuals reach their financial goals. To do this, they ask questions like...when do they want to retire, how much do they make, how much do they have saved, etc. Then they come up with a plan that includes investments and insurance to help the individual achieve those goals.

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Transcript

00:30

done to keep difficult wealthy clients happy, so they'll continue paying the 1% [man smiles]

00:36

change a year fee plus whatever other charges they incur like commissions and

00:40

oh you know the other fees. other beware of other. the job is generally housed

00:45

inside of investment banks like Goldman Sachs Morgan Stanley JP Morgan and [skyscrapers]

00:50

others and the banks generally charge that 1% for managing a client's money

00:56

each year year after year after year. so if a wealth manager is handling the

01:01

savings for a client with a hundred million bucks invested with them well

01:04

the fee for just that one client is a million bucks a year and the wealth

01:09

manager has heft or leverage or power. when they negotiate on the client's [equations]

01:14

behalf to get into whatever theoretically exclusive hedge fund or

01:19

private equity fund or other fancy for the rich only investment vehicles are

01:24

out there, and feel hot that day yeah they get discounts because they have

01:28

heft .in theory by being inside of an investment bank the PWM or Private [man lifts weights]

01:33

Wealth manager has access to valuable research or discounted pricing on fees

01:37

in whatever funds might be appropriate for the client and to all of the other

01:41

resources offered by the bank .well how's the economy looking there? well how's

01:47

your cough there mr. client? we have a nice estate and will planning department [man coughs]

01:51

down the hall here if you really are feeling sick. want to donate some money?

01:54

well we can show you a tax efficient way to do that. you know you get all kinds of

01:59

favors ,like that. that stuff tons of services the wealthy need to you know to [fancy building shown]

02:03

stay wealthy. on a day to day basis you are a fork in the road .stock and bond

02:08

research goes through you. you add your own

02:11

spin to it like well I agree with the analyst here I disagree with the analyst [man speaks over folder]

02:15

there, and then you disseminate that research to your clients. and for that

02:19

little ad of salt and pepper to the stone soup of Finance well you get to

02:24

earn a modest salary maybe 50 to 80 grand depending on where you live but

02:29

then annual bonuses that can be in the millions based on how big and lucrative [definitions on screen]

02:34

your clients are. bottom line if you're reasonably good at understanding the

02:38

concept of managing money, and figuring out who's good so you get your clients

02:42

to invest with them, but you yourself are not good enough to be an actual

02:46

portfolio slash money manager, and you know how to butt kiss with the best of [man uses throat spray]

02:51

them well maybe this is a gig for you.