The term “wealth management” is one of a number of poorly understood and frequently overused financial planning phrases. Wealth management is much more than simply giving financial advice, and wealth management advisers and advisory teams provide a range of service to their clients. Although wealth managers are by definition financial advisors, there is much more to wealth management than other types of financial advice. Typically, a wealth management client would be a high net worth individual in order to require these services, whereas a financial planner may work with middle-class clients. Here are three key ways that wealth management differs from financial advice:

1. Advanced Planning

Advanced planning is one area that sets wealth management advisers apart from other financial planners or financial advisers. There are four key areas where wealth management advisers assist with advanced planning. Wealth management teams can assist with wealth enhancement to maximize financial growth, wealth protection to protect clients’ savings from potential liabilities, wealth transfer to the client’s heirs in the event of the client’s death, and charitable giving to maximize tax deductions. Wealth managers know how to maximize their clients’ Social Security benefits, minimize their tax liability, and plan for the future by ensuring that estate planning documents are in order.

2. Investment Consulting

Although any qualified financial adviser can offer advice with investments, a wealth management team who specializes in this area will be able to offer a wide range of investment opportunities to their clients. Wealth management advisers recommend investments with their clients’ specific financial goals in mind and provide more personalized advice than other investment consultants. Because the wealth manager works for the client, he or she will put the client’s needs over the investment product in order to build trust and establish a rapport with the client.

3. Relationships

Wealth management advisers build relationships with their clients to learn more about where they are financially, what they value, and what their short-term and long-term goals are so that they can provide the best possible financial solutions. By getting to know their clients, they are able to offer a wider range of services tailored to meet their clients’ specific needs. They also help their clients to build relationships with other professionals. A wealth management team may collaborate with others such as accountants, attorneys who specialize in estate planning, and property experts, to help the client meet his or her financial goals.