What in the world is a "wealth manager"? A guide for students

Find out what wealth management is and whether you want to consider it for your career.

If you've looked into internship opportunities at banks, you might have noticed some in "wealth management" or simply "wealth." Let's dive into what this means and figure out whether it's the right career for you.

1. What's a wealth manager?

　✨ "Wealth manager" defined
　❓Why do wealth managers exist?
　🔍 What do wealth managers do?
　❌ What wealth managers don't do

2. Is wealth management for me?

3. Where can I find internships?

Part 1. What's a wealth manager?

✨ "Wealth manager" defined

As a wealth manager, you're a one-stop shop for people who (1) have a lot of money and (2) are looking to use it to achieve some goals. Let's break this down.

• Wealth: When we talk about "wealth," think anything from $100,000 in assets to the sky's the limit. The key here is that wealth represents a substantial amount of money, investments, or assets that go beyond the day-to-day necessities.
• Goals: Some people want to save for their kids' college tuition or prepare for retirement. Others want to secure their family's future or fund philanthropic ventures. Yet others just want to invest their hard-earned money and don't know where to start. The bottom line is – there's something big they want to do with their money and they want to make sure they get it right.

So as a wealth manager, you figure out your clients’ aspirations and then craft custom strategies that turn these dreams into realities.

❓Why do wealth managers exist?

Let's now go deeper into why people hire wealth managers. Why do they need their wealth to be "managed" in the first place?

• Complex financial situations: Imagine trying to solve a 3D puzzle, but every piece also changes shape based on decisions you make. That's what managing significant wealth is like. It takes a lot of financial savviness to pull off, so that's one reason people call in the pros.
• Priorities: Some people are so busy they don't have time to manage their wealth. Others have the time but prefer spending it on things they actually enjoy doing. Whatever the case, clients don't mind paying management fees for someone to take care of their wealth for them.
• Navigating the unknown: People come into wealth for all kinds of reasons. Maybe they've saved a lot more than they expected. Or they struck it big in an investment. Or they wound up inheriting a good deal of property. Whatever the case, suddenly having so much wealth can be overwhelming and they'll want people to help them guide them.
• Emotions: Money triggers all sorts of emotions, which means (even very smart, successful) people can't always manage their money in their best interest. They might "panic sell" during a downturn or "impulse buy" during an upturn. Wealth managers serve as a rational voice, providing stability and preventing emotionally driven mistakes.

🔍 What do wealth managers do?

As a wealth manager, you'll offer a suite of services tailored to each client’s unique financial goals.

• Investment strategies: You'll build personalized plans to grow or protect clients' wealth, considering your risk comfort, investment duration, and objectives.

• Tax planning: You'll come up with ways to (legally) reduce taxes, letting clients save more of what they earn.

• Estate planning: You'll ensure a client's assets are distributed as they wish after they're gone, safeguarding their family’s future.

• Risk management: You'll pinpoint financial risks and suggest protections, like life insurance.

Keep in mind wealth management strategies change for different amounts of wealth. At higher levels of wealth, you might provide more customized guidance, offer exclusive investment opportunities, or even set up a family office (a dedicated team managing a family's assets).

In any case, a good wealth manager doesn't just throw a mixed bag of solutions at their clients. You'll take a comprehensive look at your clients' finances and come up with a coordinated game plan to help them achieve their goals.

❌ What wealth managers don't do

#1 Sell stuff

Wealth managers aren't out there to push financial products on clients for a commission. Instead, you're paid through a fee structure (usually a percentage of the assets you manage), aligning your  success with your clients'.

#2 Beat the market

Wealth managers aren't there to outsmart the stock market. Instead of making risky bets, you'll opt for smart, well-planned investment strategies (like spreading a client's investments to reduce risk) that aim for solid, long-term growth. Wealth management is about keeping wealth safe, ensuring clients are set for the future, without the rollercoaster ride.

Part 2. Is wealth management for me?

Coming soon!

Part 3. Where can I find internships?

You can find plenty of internships on Prosple. We have a vast selection of internships curated for students like you. Filter 'til you find the right fit!