The difference between wealth management and financial planning
Published 10 October 2025
If you have been looking for financial advice, you have probably come across two common terms: wealth management and financial planning. At first glance, they might sound similar. Both involve helping you manage money, both aim to improve your financial future, and both are offered by professionals. But which one do you actually need?
Choosing the wrong service can mean wasted time, wasted money, and a plan that does not fit your life. Pick someone who only manages investments when you need help with protecting your family and planning for the future, and you will be left with gaps in your plan. Go for a one-off financial plan when you really need ongoing support, and your strategy can quickly go out of date. This confusion often leads people to do nothing at all, which means missing out on opportunities to protect and grow their wealth.
By understanding the difference between wealth management and financial planning, you can choose the service that matches your goals, lifestyle, and budget. In this guide, we will break down what each one offers, who they are for, common myths to ignore, and how to decide which is right for you.
What is financial planning?
Financial planning is the process of creating a roadmap for your money. I call this your Money Map. A financial planner will look at your current position, ask about your goals, and work out how you can get from where you are now to where you want to be.
Common areas covered include:
Setting short, medium, and long-term goals
Creating a budget and savings plan
Planning for retirement income
Reducing debts
Making sure you have the right insurance cover
Help with estate planning so your wealth is passed on efficiently
Financial planning can be a one-off project, or it can involve regular reviews to keep you on track. The focus is often on building strong money habits, understanding your numbers, and making clear decisions for the future.
What is wealth management?
Wealth managers usually focus more on the investments.
A wealth manager will:
Actively manage your investment portfolio
Review your tax position and make changes where needed
Suggest strategies to grow and protect your assets over the long term
Adjust this as your life and markets change
Wealth management is often only accessible to those with significant assets.
The key differences
Financial planning
Creates a financial roadmap
Covers budgeting, savings, retirement planning, estate planning, protection and investment advice.
Can be used by anyone at any wealth level.
Wealth management
Manages investments over time
Usually covers investment management, tax planning and risk management.
Typically for those with significant assets.
Myth-busting: what people often get wrong
Myth 1: They are basically the same thing
No. Financial planning focuses on creating a holistic strategy based on your goals, wealth management focuses more on actively managing assets.
Myth 2: Only wealthy people need either service
Not true. Financial planning can be useful for anyone. Wealth management is more common for those with larger or more complex portfolios, but it is not exclusive to millionaires.
Myth 3: Financial planning is just about budgeting
It goes much deeper. A good financial planner will help you map out a full life plan for your money and life goals. They help you build wealth for future you, whilst making this robust for any possible bumps in the road.
How to decide which is right for you: a step-by-step guide
List your goals - Are you focused on getting organised, investing, thinking about your future, or you solely looking for investment advice?
Assess your assets - If you have less than £250,000 investments, a financial planner may be the best first step. Over that, and especially with multiple accounts, wealth management may be more suitable.
Think about time commitment - Do you want to manage your own investments after getting a plan, or would you prefer someone else to handle them long term?
Consider complexity - Financial planners and wealth managers could help you with more complex needs. They are not all the same though, so speak to them to understand if they have the experience to deal with your level of complexity.
Decide on ongoing vs one-off - Both may offer an ongoing relationship or one-off. Ask them what they offer and consider what you need.
Why regulation matters in both services
In the UK, both financial planners and wealth managers should be regulated and authorised by the Financial Conduct Authority (FCA). This ensures they meet professional standards and gives you access to the Financial Ombudsman Service and the Financial Services Compensation Scheme (FSCS) if something goes wrong. Always check an adviser on the FCA register before hiring them.
Quick takeaways
Financial planning creates a roadmap for your money and how best to meet your goals, wealth management focuses predominantly on the investment strategy.
Choose financial planning if you need structure, budgeting, and planning.
Choose wealth management if you predominatly want help managing investments.
Always check your adviser is FCA regulated.
FAQs
1. Can I have financial planning without wealth management?
Yes. Many people hire a financial planner to create a strategy, then manage their own investments or implement the advice given.
2. Which is more expensive?
It can vary so check with the financial planner or wealth manager directly.
3. Do I need to be wealthy to have a financial plan?
No. Financial planning can be useful for anyone who wants to improve their money habits and prepare for the future.
4. How do I check if an adviser is regulated?
Search the Financial Conduct Authority’s register online to see if they are authorised.
5. Can I switch from wealth management to financial planning later?
Absolutely. Many people start with a financial plan and move to wealth management as their assets and needs grow.
6. Will I lose control of my money with wealth management?
No. You remain the owner of your assets. A wealth manager acts on your behalf within the agreed strategy.
Understanding the difference between wealth management and financial planning helps you make the right choice for your situation. If you want a clear strategy for your finances, financial planning is a great place to start. If you want professional help managing your investments, wealth management may be for you.
Whichever you choose, make sure your adviser is regulated, transparent about fees, and committed to helping you reach your goals. The right choice can save you time, reduce stress, and help you make the most of your money now and in the future.
Are you ready to get started?
Book your no obligation consultation today here. Let us start building your Liverpool wealth story together.
Your trusted Wealth Manager & Financial Planner in Liverpool,
Shalini Kanap
P.S. Related blogs you may enjoy
Do Financial Planners help with budgeting? Taking control of your finances
Empowering women: Essential financial advice for your financial plan
What do Financial Advisers do? How they secure your financial future in the UK
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