I love reading newspaper and during my weekend, I spent a few hours scrutinizing the newspaper in search of valuable informations I can get my hands on. So, today I read New Sunday Times and there was one topic which got my attention. I am always interested in creating wealth as so many people are, however I am still finding my way of doing it (I'll let you know when I found it though).
So, one of the ways into creating wealth is to tap into the wealth creator's wealth. Simply saying, you use your hard-earned management skill or tools and convince the wealth creator to hire you to manage his/her wealth. That is how financial advisor make money from. Having a credible credential is a bonus in convincing wealth creators but in my opinion, having a set of selling skills and persuasion tactics is the key for getting the wealth creator's to be sold by you. However, what is the most important is the education and your willingness to learn and to be educated even more.
Let's see how Wealth Management and Wealth Creation differs:
Wealth Creation
Purpose: To create wealth from nothing
Who works for who: You work for wealth
Risk Profile: Take risks
Resource allocation: Concentrated
Key Performance Indicator: Speed
Return on Investment: Main or only measurement
Feeling: Exciting
Wealth Management
Purpose: To manage the created wealth
Who works for who: Wealth works for you
Risk Profile: Minimise risks
Resource allocation: Diversified
Key Performance Indicator: Length
Return on Investment: One of many other measurements
Feeling: Peace of mind
Having to know this invaluable piece of information. It is now your choice to choose on which side would you prefer. There's no clear answer on which is more superior. As for me, I would choose Wealth Management as I feel it is more superior than the latter. However, each side has its own learning curve and anyone who wishes to become wealthy has their own path toward achieving their goals.
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