About This Episode
In this episode of GDS Unplugged, Glen and Robert dive deep into the often-confused worlds of investment management and wealth management. They unpack the differences, the responsibilities, and the real-life implications of choosing one over the other. From licensing requirements to financial planning software, this episode is ideal for anyone serious about their financial future.
Why It Matters
Not all financial advisers are created equal. Glen and Robert highlight how investment managers often focus on transactions and commissions, while wealth managers take a holistic approach to financial planning. Understanding this distinction can help you avoid costly mistakes and ensure your adviser is truly working in your best interest.
Key Differences
Licensing requirements can vary depending on the services provided. Some investment professionals may not be required to hold specific licenses, depending on their business model and scope of advice. Wealth managers, including those at GDS, often hold various licenses, and may be subject to oversight by regulatory bodies like the SEC and/or FINRA, depending on their registration status and the services they offer.
Wealth managers are more likely to offer comprehensive financial plans that adapt to life changes. These plans often include tax strategies, Social Security optimization, healthcare cost projections, inflation, and more.
Investment managers may earn commissions through products like mutual funds, proprietary products, and annuities, while GDS operates under a fee-only fiduciary model, to promote alignment with client goals and long-term interests.
Real-Life Examples
Glen and Robert share stories of clients whose lives changed dramatically—like a 67-year-old recently diagnosed with cancer—and how GDS and a nimble financial plan helped them adapt. They also discuss how advanced planning tools can project healthcare costs, optimize Social Security timing, and stress-test retirement plans.
Common Pitfalls
- Choosing an adviser without verifying their credentials or background.
- Relying on basic calculators instead of comprehensive planning software.
- Ignoring hidden fees embedded in investment products.
- Failing to update financial plans as life circumstances change.
Takeaways
- Always verify your adviser's licenses and background using tools like https://brokercheck.finra.org/.
- Require a comprehensive financial plan that includes tax strategies, healthcare forecasting, legacy planning, and future goals.
- Understand the difference between investment and wealth management to make informed decisions.
- Don’t settle for a plan that’s created once and forgotten—review it at least twice a year.
Resources
- Connect with Glen Smith and Robert Casey on LinkedIn.
- Check out our podcast on The Truth About Adviser Fees.
- Subscribe to our YouTube channel.
- Contact GDS Wealth Management for a complimentary financial consultation.
- Submit your questions to Glen and Robert, GDS Unplugged mailbag by emailing gds@gdswealth.com.
Why Listen?
This episode is packed with practical insights and real-life scenarios to help you distinguish between investment and wealth management. Whether you're just starting your financial journey or planning for retirement, Glen and Robert provide the clarity you need to make confident, informed decisions.
GDS Wealth Management (“GDS”) is an SEC Registered Investment Adviser. Registration as an investment adviser does not imply a certain level of skill or training. The information presented in this podcast is intended for informational purposes only and does not constitute investment, legal, tax, or other professional advice. Any references to financial planning, wealth management, investment management, or advisor credentials such as “fiduciary” or “fee-only” are general in nature and may not reflect the qualifications or services of all financial professionals. Examples and scenarios shared in this podcast are hypothetical, intended for illustrative purposes only, and do not guarantee future results. Past performance is not indicative of future outcomes. All investing involves risk, including the potential loss of principal. No strategy can ensure success or protect against losses in all market environments. The views and opinions reflect the authors as of the publication date and are subject to change without notice. This podcast may reference third-party tools, custodians, technology platforms, or financial planning software. Such references are not endorsements and should be independently evaluated. For more information about GDS Wealth Management, including a detailed description of our services, fees, and important disclosures, please visit https://www.gdswealth.com.
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