The Complete Guide to Wealth Management Basics

Charlene Laney |

Wealth Management - wealth management

Introduction to Wealth Management

Feeling overwhelmed by financial decisions as you navigate through major life transitions? Welcome to wealth management, a service designed to help you simplify your financial life and build more confidence in your financial decisions. Whether you're dealing with your recently changed marital status, coping with the loss of a loved one, or transitioning towards retirement, wealth management is a crucial tool to weather these changes and lay the groundwork for a secure financial future.

Wealth management is an all-encompassing service designed specifically to cater to affluent individuals or families looking for specialized financial advice and services. It aims to streamline their financial endeavors and help them achieve their financial goals sustainably and efficiently.

Here's a quick snapshot of what you need to know about Wealth Management:

  • It's Comprehensive: Wealth management provides advice and services across a broad array of finance-related areas, ranging from investment management, estate planning to retirement and tax services. Its focus is on addressing diverse and complex needs of clients.
  • It's Customizable: Every financial plan in wealth management is tailor-made according to the client's specific needs and individual situation.
  • It's Client-centric: The wealth manager works closely with clients, offering strategies that are in line with their financial objectives and life goals.

Wealth Management Services Infographic - wealth management infographic pillar-3-steps

Wealth management requires a high degree of expertise, personalization, and client engagement. It is more than just financial advice. It takes into account the entirety of a person's financial life, simplifying it, and catering to specific needs through professional guidance. Together, let's navigate wealth management and find the right path for your financial future.

Understanding the Wealth Management Process

The journey to wealth management can seem complex, but at NewMaker Financial, we break it down into four digestible steps to help you feel less overwhelmed and more in control of your financial future.

Initial Consultation and Goal Setting

We start with an initial consultation, where we get to know you and your unique financial situation. It's a time for us to understand your financial goals, concerns, and aspirations. This meeting allows us to identify any vulnerabilities you might have, like unsuitable investments or financial fraud, and work towards securing your current financial situation. It's the first step in our SEE process, where we Secure, Envision, and Enact a plan for you.

Development of a Personalized Wealth Management Plan

Next, we move on to the development of a personalized wealth management plan. This is where we take your financial goals and dreams and turn them into a tangible plan. We call this our Vision Plan, a comprehensive strategy that looks beyond just your finances. It's a roadmap to your best future, crafted with our understanding of investments, insurance, taxes, and economics. As your vision evolves, we'll be there to update and alter the plan, ensuring it always reflects your current needs and aspirations.

Implementation of the Wealth Management Plan

Once the Vision Plan is solidified, we enact that vision. In partnership with LPL, the nation’s leading independent broker, we offer you investment and insurance solutions that align with your goals. Our core approach, known as time segmentation or the "bucket approach," allows us to build a portfolio that puts your vision at its center. This step is all about making your plan come to life.

Regular Review and Adjustment of the Plan

The final step in the process is a regular review and adjustment of the plan. To monitor your progress and our financial recommendations, we create an Action Plan. This plan documents your progress towards your new future, outlining both emotional milestones and financial tasks. Every year we celebrate your accomplishments, helping you see how far you’ve come and how far you can go.

Wealth management is not a one-time event but a continuous journey. As your life changes, so will your financial needs and goals. Our mission is to support you through these transitions, providing professional guidance and ensuring your wealth management plan remains a secure foundation for your financial future.

At NewMaker Financial, we believe that you are more than just an account balance, and our wealth management process reflects that. We see you as a person with unique financial goals and dreams, and we're here to help make them a reality. Let's see your future together.

Key Services Provided by Wealth Management Firms

Effective wealth management goes beyond just managing your investments. It addresses all facets of your financial life, creating an integrated approach to ensure your wealth works for you. Wealth management firms, including us at NewMaker Financial, often provide a range of services, such as investment management, financial planning, tax advice, and estate planning.

Investment Management

Investment management is a crucial component of wealth management. It involves creating and managing an investment portfolio that aligns with your financial goals and risk tolerance. This process includes selecting suitable investment instruments – such as stocks, bonds, mutual funds, and real estate – and periodically reviewing and adjusting the portfolio to optimize returns.

At NewMaker Financial, we aim to understand your goals and develop an investment strategy tailored to your needs. Our approach to investment management is not just about making money; it's about creating a plan that supports your vision for the future.

Financial Planning

Financial planning is a comprehensive process that involves identifying your financial goals and creating a roadmap to achieve them. This process can encompass budgeting, retirement planning, education funding, debt management, and more.

We believe a strong planning process is the best way to create a more financially secure plan. We work with you to understand your current financial situation, future aspirations, and any potential roadblocks. From there, we develop a personalized financial plan that seeks to protect your needs now and plans for the future in a tax-efficient manner.

Tax Advice

Effective tax planning can help you reduce your tax liability and maximize your after-tax returns. This can involve strategies for tax-loss harvesting, managing capital gains and losses, optimizing tax-advantaged accounts, and more.

While we at NewMaker Financial aren't tax professionals, we do understand the tax implications of various financial decisions. We consider these implications when developing your financial plan, and we're able to coordinate with your tax advisor to ensure an integrated approach.

Estate Planning

Estate planning involves arranging for the management and disposal of your estate during your life and after death. This can include creating wills and trusts, minimizing estate taxes, setting up charitable contributions, and more.

At NewMaker Financial, we recognize the importance of estate planning in wealth management. Whether it's providing advice on creating a will or trust, or helping you minimize estate taxes, we are here to assist you.

In summary, wealth management is a comprehensive service that combines various financial services to meet your unique needs. Whether you're looking to grow your investments, plan for retirement, save on taxes, or pass on your wealth to the next generation, we at NewMaker Financial are here to help guide you on your financial journey.

How to Choose a Wealth Manager

Choosing your wealth manager is a crucial decision that can impact your financial future. It's essential to consider several factors, including the wealth manager's reputation, their clientele, their investment philosophy, and their service offerings and fees.

Evaluating the Reputation of a Wealth Manager

The reputation of your wealth manager is a key factor. You want a professional who is reputable and properly licensed to provide you with sound guidance. You can ask for reviews, check their standing from regulatory bodies like FINRA Brokercheck, or the SEC’s Investment Advisor Public Disclosure database.

Understanding the Clientele of a Wealth Manager

Ensure the wealth manager has a history of working with clients in situations similar to yours. Whether you're dealing with an inheritance, going through a divorce, or planning for retirement, it's important that the wealth manager understands your specific circumstances and needs.

Assessing the Investment Philosophy of a Wealth Manager

The wealth manager's investment philosophy should align with your own. They'll be making decisions about your portfolio, so you need to agree with their approach. This could include strategies like asset allocation, diversification, rebalancing, and tax-loss harvesting.

Comparing the Offerings and Fees of Different Wealth Managers

Wealth managers offer a variety of services, and it's crucial to ensure they offer what you need. These could range from investment management to financial planning, tax advice, and estate planning. Additionally, understand the fees associated with these services. They may include investment-related or specific advisory fees, so ensure you know what you're paying for.

At NewMaker Financial, we understand that wealth management is more than just managing money—it's about supporting you through life's transitions and helping you achieve your financial goals. Our approach is client-focused, and we pride ourselves on our reputation, expertise, and personalized service. We're here to help you navigate your financial journey, and we're committed to providing you with the best possible service.

The decision to hire a wealth manager should not be rushed. Take your time, do your research, and choose someone you trust and feel comfortable working with. After all, they'll play a huge role in your financial future.

Wealth Management Strategies

Managing your wealth effectively requires a well-thought-out strategy. Let's delve into some commonly used wealth management strategies that can help you grow and protect your wealth.

Asset Allocation

Asset allocation is the process of dividing an investment portfolio among different asset categories such as stocks, bonds, and cash. This strategy is crucial in wealth management as it helps to balance risk and reward based on an individual’s goals, risk tolerance, and investment horizon.

At NewMaker Financial, our asset allocation strategies are highly personalized, considering your specific financial situation and goals. We understand that each client has unique needs and risk tolerance levels, thus requiring a unique approach towards asset allocation.

Asset Allocation - wealth management


Diversification is another risk management technique that involves investing in a variety of assets. By spreading your investments across different asset classes, you minimize the impact of losses in any one particular asset, thereby reducing the overall risk of your portfolio.

Think of diversification as not putting all your eggs in one basket. It's a strategy we strongly advise our clients to adopt as it can help protect against sudden market changes.


Rebalancing is the process of realigning the proportions of your portfolio's assets to maintain your desired balance of risk and reward. In the long run, some of your investments may outperform others, causing your portfolio to drift away from its target asset allocation. Rebalancing helps to realign your portfolio with your original asset allocation and risk profile.

At NewMaker Financial, we conduct regular portfolio reviews and make necessary adjustments to keep your portfolio aligned with your financial goals and risk tolerance.

Tax-Loss Harvesting

Tax-loss harvesting is a strategy used to minimize capital gains taxes by selling securities that have experienced losses and replacing them with similar investments. This strategy can help offset taxes on both gains and income.

Tax planning is an integral part of our wealth management services at NewMaker Financial. Our team works in tandem with your tax advisor or can put you in touch with a professional from our NewMaker Network to integrate your investment strategy with tax planning, thereby optimizing both.

In conclusion, these wealth management strategies, when employed effectively, can help you achieve your financial goals. However, it's important to remember that the specific strategies employed will depend on your unique financial situation and goals. That's why we at NewMaker Financial are always ready to help you navigate through these strategies, ensuring that your wealth is managed in the most effective way possible.

Alternatives to Traditional Wealth Management

We understand that not everyone might want or need traditional wealth management services. Some individuals might prefer more hands-on control of their assets, while others might be looking for less expensive alternatives. We've identified three popular alternatives to traditional wealth management: robo-advisors, index funds, and self-directed investing.


A robo-advisor is an automated wealth management service that uses algorithms to provide investment advice and manage your portfolio. This is a great option for individuals who prefer a hands-off approach to managing their investments but still want their assets managed according to a defined investment strategy.

Robo-advisors are typically less expensive than traditional wealth managers and can be a good option for those who want to manage their own finances but don’t have the time or knowledge to do so effectively.

Index Funds

Another alternative to traditional wealth management is investing in index funds. These are a type of investment that tracks specific market indexes, like the S&P 500. Index funds provide a simple, low-cost way to invest, typically offering diversification across a variety of stocks.

Index funds are particularly appealing because they allow investors to achieve broad market exposure with a single investment, reducing the need for constant monitoring and rebalancing.

Self-Directed Investing

Lastly, for those who prefer to have complete control over their investments, there's self-directed investing. This approach requires a significant amount of time, knowledge, and research. But for those who are willing to put in the effort, it can be a rewarding experience.

Self-directed investing allows you to make your own investment decisions and execute trades on your own. It's a good option for those who have a deep understanding of financial markets and are comfortable taking on the responsibility of managing their own investments.

While these alternatives can be effective, keep in mind that managing your wealth is crucial. So, whether you go with traditional wealth management or one of these alternatives, ensure that it aligns with your individual needs and goals.

At NewMaker Financial, we're always ready to help guide you through these decisions, ensuring that your wealth is managed in the way that's best for you.

The Unique Approach of NewMaker Financial to Wealth Management

At NewMaker Financial, we believe in a unique approach to wealth management. Our philosophy is rooted in three core principles: holistic vision planning and investment management, prioritizing education for our clients, and being an approachable and reliable partner.

Holistic Vision Planning and Investment Management

We don't just manage your wealth; we help you envision a secure and fulfilling future. Our approach begins with understanding your goals, dreams, and concerns. Then, we craft a comprehensive financial plan that aligns with these objectives. This includes investment management and strategic wealth planning tailored to your specific needs and circumstances.

Just like a skilled architect, we see the whole building before laying the first brick. We take into account every aspect of your financial life, including investment advice, estate planning, retirement planning, and tax services. This holistic approach ensures that your financial plan is not just about numbers but about building a bridge towards achieving your dreams.

Prioritizing Education for Clients

We understand that financial planning can be overwhelming, especially during times of change. That's why we make a point of empowering our clients through education. We provide the necessary knowledge and tools to help you make informed decisions about your wealth.

At NewMaker Financial, we're committed to being transparent in our dealings and acting as a fiduciary in our advisory relationships. We believe in fostering a sense of confidence and control among our clients, allowing you to take an active role in shaping your financial future.

Being an Approachable and Reliable Partner

Finally, we prioritize being an approachable partner. We understand that dealing with financial matters can be daunting. That's why we strive to create an environment where you feel comfortable asking questions and sharing your concerns.

At NewMaker Financial, we're more than just wealth managers—we're your partners in navigating your financial journey. Whether you're going through a major life transition or planning for the future, you can rely on us to provide the guidance and support you need.

In conclusion, our unique approach to wealth management ensures that your path to financial success starts here. Let NewMaker Financial be your guide and partner in this journey. With our professional advice, strategic planning, and commitment to your success, you can confidently navigate your financial future, no matter what life throws your way.

Conclusion: The Importance of Wealth Management in Achieving Financial Goals

The journey to financial security and prosperity can often seem daunting and complex. With various financial products, investment options, and tax laws to navigate, the process of building, managing and preserving wealth can become overwhelming. This is where wealth management plays a pivotal role.

Wealth management is more than just investing—it's about creating a comprehensive plan that brings together all aspects of your financial life. It integrates investment management, tax advice, estate planning, and more to ensure a holistic approach to your financial health. The objective is not just to grow your wealth, but also protect it, and align it with your life goals and values.

At the heart of this process is the wealth manager. A wealth manager is your partner in this journey, offering personalized advice tailored to your unique financial circumstances and goals. They help you make informed decisions, guiding you through market complexities, and providing strategies to mitigate risks and optimize returns.

Wealth management is not exclusive to high-net-worth individuals. Regardless of your financial status, it can provide a roadmap to your financial goals and help you make the most of your assets. After all, as Joshua Dunlop rightly points out, wealth is not just about having more money, but about having enough to live the way you want.

At NewMaker Financial, we understand that wealth means different things to different people. Our goal is to help you define what wealth means to you and to create a strategy that aligns with your definition. This is why we provide education for our clients, ensuring that you're fully informed about the decisions you're making. We aim to be not just your financial advisor, but also your partner and ally in your financial journey.

So, as you navigate through life’s transitions, remember that wealth management is not a luxury—it's a necessity. It's a tool that helps you plan for the future, protect your assets, and ultimately, achieve your financial goals.

To learn more about how NewMaker Financial can assist you in your wealth management journey, visit our website or contact us today.

Financial Planning - wealth management