What is Wealth Management, Types, Strategies & How to Apply

MANAGEMENT, ACTIVELYSHARE.COM — Want to know more about wealth management? This is the discussion.

ActivelyShare.com friends, have you ever had trouble managing your wealth and family? Worried about not being able to manage your money no matter how much income you have? Maybe you and your family need wealth management services, or wealth management. What is wealth management? What types of wealth management can you try? What is the best work pattern and wealth management strategy for you? Check out the explanation as follows.

What is Wealth Management?

If you want to know what wealth management is, here’s what wealth management means according to some experts.

Yarman (2008)

Yarman explained that wealth management is a planning of investment activities based on financial goals and the criteria of each individual.

This investment planning includes asset development, debt management, planning tax payments, risk management, and also the allocation of assets based on these things.

Tandelilin (2010)

According to Tandelilin, the notion of wealth management is a broad and comprehensive wealth management service. Types of services such as:

  • Investment management and strategy
  • Asset management
  • Portfolio management
  • Tax consultation
  • Insurance

Purwati (2009)

Based on Purwati’s explanation, the notion of wealth management is financial management for the family that can be obtained by everyone by taking into account the opportunities and risks.

So if we conclude, the meaning of wealth management is a wealth management service from financial companies for individuals and families that offers various types of services, such as investment management, asset management, tax consulting, insurance, and so on.

The Beginning of Wealth Management

The term wealth management or wealth management began to be used in the early 90s. However, the practice existed long before that. Wealth management has been known in London since the 17th to 18th centuries.

With the development of international finance, there is a need for private banking or personal banking services that can manage various assets and wealth of certain people.

In the digital era like now, private wealth management is increasingly gaining a place in people’s hearts. Because, these services can help people who have difficulty managing their wealth. Thus, there are various wealth management services to be able to manage client assets.

Types of Wealth Management

In general, the type of wealth management is divided into 3 main pillars, namely protection, growth, and distribution of wealth.

1. Wealth Protection and Preservation

This type of wealth management focuses on protecting the wealth and assets of a family. This protection is provided to avoid a reduction in value, so that wealth and assets are maintained in their condition, both in quality and quantity.

2. Wealth Growth and Accumulation

Wealth Growth and Accumulation is a type of wealth management aimed at growing the value of existing wealth and assets. In order to continue to grow, wealth and assets need to be processed in order to grow bigger, so they must be managed properly.

3. Wealth Distribution and Transition

The last type of wealth management is wealth distribution and transition, namely the process of wealth management by distributing or transferring assets to other parties. If you have problems in the process of distributing wealth, you can consult a wealth manager or other party you trust.

Wealth Management Strategy Alternatives

After discussing the types of wealth management, this time we will discuss some strategies for those of you who want to join this program, here is a list.

1. Insurance

Not many people know that insurance is a wealth management product. Insurance is a wealth management product because it contains elements of protection for the wealth and assets of its users. All kinds of wealth and assets can be insured, including the health of the body and life.

If you want to protect what is of value to you, insurance is the best wealth management strategy to choose.

2. Trust Fund

Trust fund is a strategy to protect wealth by entrusting it to someone to keep it useful. A trust fund is similar to a will, however, the person who is trusted by the trust fund is obliged to manage and maintain the value of the money so that it does not change even though many years have passed.

In a trust fund, funds are usually managed for social benefits such as orphanages, foundation construction, and disaster grants. Every certain time, the trust fund manager is required to report the management of the fund to the owner or heir.

3. Hedge Fund

Hedge fund is a wealth management strategy by depositing funds with investment managers to be combined with other funds and invested. This strategy can be done by those of you who have lots of funds, but are still not big enough to invest in giant companies.

In a hedge fund, the investment manager will collect the funds of the investors into one, after which it is invested in the company according to the agreement of the investors.

4. Investment Management

The next strategy for wealth management is investment management, or investment management. In investment management, you can entrust whatever funds you have to a trusted investment manager. Next, the manager will manage your funds to increase their value.

5. Business Venture

The next strategy is a bit risky, but most of the giant companies that exist today are built using business venture funds. This wealth management strategy is a strategy by entrusting a number of funds to new businesses.

Because the business is still new or not even established, the return on investment generally takes time. However, once the business is developed, the return on investment will be greater than the investment in general.

6. Estate Management

The last strategy for wealth management is estate management, also known as inheritance management. If you have many family members and are worried about miscommunication during the distribution of wealth, you can choose a wealth manager to manage it.


In order to be more useful and grow in value, wealth must be managed properly. If you have difficulty doing so, you can use trusted wealth management services.

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