What is a Wealth Strategist?

June 8, 2020

People are often conditioned to associate financial advice with investment portfolios. However, there is much more to managing and growing wealth than this. To plan for a healthy financial future, it is important to take a look at your finances as a whole in order to see the big picture. A certified wealth strategist is the key to doing so.

Financial Planner vs. Wealth Strategist

People frequently mistake the role of a wealth strategist with that of a financial planner. While there are similarities between the two, both take a different approach to helping clients achieve their financial goals. To fully understand what a wealth strategist does, we must first look at the characteristics of a financial planner.

Characteristics of a Financial Planner

A financial planner is a qualified investment professional who assists clients in reaching their retirement goals. To do this, a financial planner prepares projections taking into account the client’s current assets and expected growth. However, financial planners do not take into consideration the client’s entire financial picture like their goals beyond retirement.

Financial planners generally have a pre-determined pool of financial products they offer clients. Rather than looking outside of the box at other products and strategies, they focus solely on these products. Once a strategy is developed, financial planners take a much more hands-off approach when compared to wealth strategists. Instead, the responsibility of managing the portfolio and reaching out with questions or concerns falls on the client. The financial planner may meet with the client on occasion to discuss the portfolio, but they do not actively manage it.

Other characteristics include:

  • Creating a strategy based on the question, “What can you afford?”
  • Product-oriented mindset
  • Focused primarily on retirement planning
  • Believes dollars have one job (money often sits stagnant)

Characteristics of a Wealth Strategist

A wealth strategist is an expert in financial strategy. As a financial architect, a wealth strategist has the knowledge and capabilities to connect each dot to create a tailor-made plan for each client. Though a plan may consist of several complex financial products and strategies, a wealth strategist can explain them in a way that is easy to understand.

Other characteristics include:

  • Creating a strategy based on the question, “What is possible?”
  • Thinking outside of the box to optimize wealth growing opportunities
  • Educating and empowering individuals to take control of their financial future
  • Believing each dollar should be used for multiple purposes (money is fluid)

The intention of a wealth strategist is to create a comprehensive plan that will help a client leave a life free of financial hardship. To do so, a wealth strategist looks at several different aspects of their client’s financial picture. This includes goals, plans for retirement, estate and insurance planning, and what kind of legacy the client wants to leave behind. By defining these aspects, a wealth strategist can create a tailor-made strategy to help the client reach their financial goals. The resulting strategy is often composed of a combination of financial products and insurance-based products.

A wealth strategist’s relationship with the client doesn’t end once a strategy is in place, however. Rather, the relationship between a wealth strategist and the client is that of a lifelong partnership. A wealth strategist empowers clients to take control of their financial future while also acting as a guide throughout the journey. This partnership helps to mitigate risks, reach desired targets and goals, and helps the client leave behind a financial legacy that will span generations.

Is a Wealth Strategist Right for You?

Many people fall for the common misconception that wealth strategists are only for those who are extremely rich. The truth is, anyone can benefit from the knowledge that comes from partnering with a wealth strategist. In fact, everyone can and should take an active role in their finances. Having control ensures your money is continually working in a way that will help you live the life you want. With the right strategy and guide, that’s entirely possible. Learn more about what a wealth strategist does and how working with one can benefit you!

Get in touch with Wade Borth at (701) 793-3471 or by email at wade@sagewealthstrategy.com to get started.