How to become a wealth manager?

Summary 

• According to FinExtra, the UK is one of the largest wealth management markets worldwide.

• A wealth manager helps clients manage their financial health, meet their goals, and secure their futures.

• Qualifications and experience are required to be a wealth manager.

• Career progression can lead to senior roles, specialisations, or starting a firm.

What does a wealth manager do?

Wealth managers aim to ensure their client's financial health and prosperity while helping them to achieve their long-term goals. Becoming a wealth manager means fulfilling a role that is crucial in navigating complex financial landscapes and helping to secure clients' financial futures. Their key services include:

• Investment management

• Financial planning

• Retirement planning

• Tax planning

• Estate planning

• Risk management

• Philanthropic advice

Wealth management vs asset management: what’s the difference?

When comparing wealth management vs asset management, they both involve financial guidance and portfolio management, but they differ in scope. Wealth management is broader and offers a comprehensive approach covering all aspects of a client's financial life, including investment advice, tax, retirement, and estate planning. 

Asset management serves a different need and objective. It focuses on managing investments, such as bonds, stocks, and real estate, to maximise returns. 

What are the benefits of being a wealth planner?

Being a wealth manager in the UK offers several benefits. It's a lucrative career with high earning potential, often including bonuses and commissions. The wealth manager role provides opportunities to build solid, long-term relationships with clients and positively impact their financial futures.

Wealth managers enjoy a dynamic work environment, dealing with diverse financial challenges and solutions. There's also significant professional growth, with opportunities for advancement and specialisation. Additionally, the job offers stability, as soft skills in financial expertise remain in demand.

How much do wealth managers earn in the UK?

Wealth management is a financially rewarding career with significant earning potential. Wealth managers' earnings vary widely in the UK based on experience, location, and client base. 

Entry-level wealth managers typically earn a base salary of around £47,705. At the same time, their experienced counterparts can reach up to £104,000, including bonuses and commissions.

According to Glassdoor, the average salary for wealth managers in London is £76,000, which includes the base salary plus commissions and bonuses.

What qualifications are required to become a wealth manager?

Wealth managers must have a degree in economics, accounting, finance, or a related field. Their academic qualification must be complemented with practical experience in the financial industry, typically gained through entry-level positions or internships.

You can boost your expertise and credibility as a wealth manager with advanced qualifications like a Chartered Financial Analyst (CFA) or Master of Business Administration (MBA). Furthermore, getting regulatory approval from the Financial Conduct Authority (FCA) can also bolster your credibility and expertise.

What skills are required for wealth management?

To be a successful wealth manager, one must have a diverse skill set. These skills include the following:

• Financial acumen in markets, investment strategies, and economic trends.

• Analytical skills to assess financial data and develop strategic plans.

• Communication skills to explain complicated concepts to clients clearly and effectively.

• Interpersonal skills to grow trust and maintain long-term client relationships.

• Problem-solving skills and the ability to create customised solutions to ensure clients' financial goals. 

• Attention to detail, guaranteeing accuracy in financial planning and compliance. 

• Ethical judgment to uphold integrity and standards in all client interactions.

How to become a wealth manager

To become a wealth manager takes time. First, you must obtain an undergraduate degree in finance or a related field. Then, you must do practical work or internships to gain practical experience. Finally, it helps to add industry-recognised certifications to your qualifications. The entire process, from education to certification, generally takes five to seven years.  

Consider the following pointers if you're considering this career path:

Get experience in the field

Gaining experience in the financial sector, such as in banking or financial advisory roles, is crucial and helps to build practical knowledge. Typically, wealth management firms employ those with more experience in the industry.

Earn a degree

As mentioned, you must earn a Bachelor's degree in finance, economics, or a related field before qualifying as a wealth manager.

Get your management certifications

Consider getting a Diploma for Financial Advisers (DipFA), a Diploma in Regulated Financial Planning, or the Chartered Wealth Manager certification from the Chartered Institute for Securities and Investments (CISI). These certifications cost up to £3,000 each.

How long will it take to become a wealth manager?

Given the studying required, becoming a wealth manager usually takes a minimum of five years. A bachelor's degree takes three to four years, while gaining practical experience in the financial sector takes a year or two, as does obtaining the additional certifications required.

Those who study while doing an internship can progress to a wealth manager title faster, but the key is that you need vast experience at different levels of financial services. 

Can I become a self-employed wealth manager?

Wealth managers with vast experience and a broad client base can definitely become self-employed. The advantages of becoming a wealth manager who is self-employed are as follows:

• Potential for higher earnings

• Flexible work hours

• The chance to grow your own client base.

However, being a self-employed wealth manager has its challenges, too. These include the following:

• Strong self-discipline

• The ability to manage business operations

• Building your own client base

• Maintaining professional standards without the support of a larger firm.

What is career progression like for wealth managers?

Becoming a wealth manager can lead to several career progression opportunities. Starting as junior advisors, they can advance to senior wealth manager roles, handling more complex client portfolios. With experience, they may become team leaders or department heads, overseeing other advisors. Some progress to executive positions like Director of Wealth Management or even partner.

Wealth managers specialising in niche areas, such as tax planning or estate management, can also enhance their career growth. Additionally, wealth managers might start their own firms, leveraging their expertise to build a client base independently.

Want to work with Unbiased? 

Becoming a wealth manager in the UK involves earning a relevant Bachelor's degree, gaining field experience, and obtaining certifications like the DipFA or Chartered Wealth Manager. The process typically takes five to seven years.

Wealth managers need financial acumen, analytical ability, and strong communication skills. Their career progression can lead to senior roles, specialisations, or starting a firm. This said, self-employment offers flexibility but comes with challenges. 

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