Wealth Management – Wealth Accumulation, Discovery & Marketing

Vocabulary flashcards summarising essential terms and concepts from the lecture on wealth accumulation, client discovery, risk conversation and advisor marketing.

Wealth Management

Holistic financial approach that integrates accumulation, preservation and transfer of wealth to align with a client’s life goals.

Wealth Advisor

Professional who uses a client-centred, life-stage approach to coordinate investment, tax, insurance and succession strategies.

Financial Advisor

Professional who traditionally focuses on selecting investments and managing portfolios, often product-centred.

Accumulation Stages

Age-related phases—seed-money formation, mid-life growth, pre-retirement consolidation and retirement—used to gauge client needs.

Seed-money Formation Stage

Early career phase (≈20-40) focused on building initial savings and establishing long-term saving habits.

Mid-life Growth Stage

Phase (≈35-60) when higher earnings allow accelerated saving and serious retirement planning.

Pre-retirement Consolidation Stage

Period (≈55-70) devoted to final wealth build-up and safeguarding assets before stopping work.

Retirement Stage (Accumulation Context)

Post-work phase where assets are drawn for income yet may still be grown or managed for legacy.

Life Stage Approach

Client classification based on personal circumstances (e.g., family build, career evolution) rather than age alone.

Life Transition

Event that moves a client to a new life stage, triggering new financial priorities (e.g., inheritance, illness).

Wealth Transfer

Movement of assets between generations or spouses, commonly via death or divorce.

Objectives-based Planning Approach

Discovery method that starts with client values and goals to craft financial strategies.

Discovery (Client Discovery)

Structured process of learning a client’s current finances, future goals and emotional drivers.

Current State Questions

Discovery questions aimed at factual details of a client’s present situation.

Future State Questions

Discovery questions that probe goals, implications and emotions about the future.

High-value Question

Open-ended inquiry that elicits meaningful insights and emotional engagement from clients.

Structured Conversation

Planned dialogue framework that guides discovery while feeling natural to the client.

Emotional Buy-in

Client’s personal commitment to a financial plan achieved through values-focused discussion.

Hierarchy of Needs (Financial)

Concept that money first meets basic security needs before funding higher-level lifestyle and legacy goals.

Financial Comfort

State in which a client feels secure and unconcerned about day-to-day money issues.

Risk Tolerance

Client’s capacity and willingness to endure investment volatility and potential loss.

Risk-profile Questionnaire

Tool that scores a client’s attitudes toward risk; should supplement, not replace, conversation.

Investment Knowledge & Experience

Client’s familiarity with markets and products, a factor that shapes perceived risk tolerance.

Behavioural Finance

Study of how cognitive and emotional biases affect investment decisions.

Asset Allocation

Distribution of portfolio across asset classes; primary long-term determinant of returns.

Market Timing

Tactical shifts into or out of assets based on short-term forecasts.

Product Selection

Choosing specific securities or funds within an asset class.

Strategic Alliance

Mutually supportive relationship between professionals who actively refer clients to each other.

Reciprocal Agreement

Loose cross-selling arrangement among complementary professionals.

Professional Referral Network

Group of trusted specialists an advisor recommends to broaden client solutions.

Extended Team

Combination of in-house staff and external experts coordinated by the wealth advisor.

Value Proposition

Clear statement of the unique benefits an advisor delivers to clients.

Branding (Advisor)

Consistent marketing message that differentiates an advisor’s services in the marketplace.

Unique Value Proposition

Distinct client-oriented benefit that sets an advisor apart from competitors.

Above-the-Line Marketing

Focus on client emotions, relationships and life outcomes rather than products.

Below-the-Line Marketing

Focus on technical aspects: investments, tax planning, products.

Client-Centred Approach

Advisory philosophy that prioritises individual client goals over product promotion.

Mission Statement (Advisor)

Concise declaration of the advisor’s purpose and guiding principles.

High-Net-Worth Individual (HNWI)

Person with substantial investable assets requiring complex planning.

Capital Purchase

Large expense such as a home or vehicle that influences cash-flow planning.

Emergency Fund

Liquid reserve set aside to meet unexpected expenses or income shocks.

Tax-Advantaged Account

Savings vehicle offering preferential tax treatment (e.g., pension plan, housing savings account).

Legacy

Wealth or impact a client intends to leave to heirs or causes.

Philanthropy

Strategic charitable giving integrated into a client’s financial plan.

Financial Windfall

Sudden, often unexpected, influx of money (e.g., inheritance, business sale).

Financial Setback

Adverse event that reduces income or assets, requiring plan adjustments.

High-Value Seminar

Educational event centred on life-stage issues (e.g., caregiving costs), reinforcing advisor’s brand.

Social Media Strategy

Planned use of platforms like LinkedIn or Twitter to educate, engage and attract clients.

Professional Collaboration

Co-ordinated work with other specialists to deliver holistic client solutions.

Client Discovery Roadmap

Advisor’s structured outline ensuring all key life areas are explored during conversations.