Apr 02, 2025
Lori Gann Morris, CIMA®, AIF®, CeFT®, Co-Founder / Managing Partner
Understanding the difference between financial planning and wealth management can help you make the right choice for your long-term goals. Some people need a solid plan to grow their assets, while others require a more hands-on approach to protect and maximize what they’ve already built—here’s what each of these services are and what’s best for you and your family.
Key Differences Between Financial Planning and Wealth Management
Scope of Services
Financial planning covers a broad range of financial fundamentals—budgeting, saving, retirement planning, and tax strategies. It’s designed to help individuals and families establish financial security and work toward their goals. Wealth management, however, is far more specialized, addressing complex financial scenarios for those with significant assets.
Complexity of Needs
Financial planning is a great fit for those still building their wealth, while wealth management is designed for higher net-worth individuals who need sophisticated strategies for asset protection, tax efficiency, and multi-generational wealth growth and distribution. If your concerns involve trusts, business succession, or philanthropic giving, wealth management is likely the course you’ll want to take.
Level of Customization
While financial planning typically follows a structured framework to guide individuals toward financial stability, wealth management takes a much more nuanced and higher-scale approach. It involves collaboration with tax specialists, estate attorneys, and investment professionals to create a highly customized plan that aligns with long-term financial goals and family dynamics.
How Clients Are Typically Charged
Financial Planning Fees
Financial planners tend to charge a flat fee, hourly rate, or, in some situations, a percentage of assets under management (AUM). It’s not uncommon for financial planners to operate on a commission-based model as well, where they earn return from financial products they recommend.
Wealth Management Fees
Wealth management can also follow a fee-based structure, but more often than not tend to align with AUM structure. Given the high level of customization and expertise involved, fees are generally higher but include more breadth and depth to their capabilities.
Ultimately, financial planning is more accessible, while wealth management reflects the complexity of services aimed at high-net-worth individuals.
Trusted Wealth Advisors in Austin
Choosing between financial planning and wealth management comes down to your financial stage and long-term goals—whether you're building wealth or preserving and growing a substantial portfolio. If you’re in the Austin area and are looking for wealth management aligned to high-net-worth individuals and families, AMG Wealth Advisors can provide the insight and services you need. Reach out to our team to schedule a consultation!