If you sat 100 wealth managers in one room and asked them to define wealth management, you may get 100 different answers. This is partly because of the personal and individualistic way in which wealth management should be offered to each client.

Wealth management is about taking care of all your financial needs, as well as those of your family and in some cases businesses through a long-term, consultative relationship. Depending on the demands of the client, this can comprise different levels of service.

The core of wealth management should be a personal service and long-term relationship with a wealth manager, regular and comprehensive reporting and the management of your personal finances.

A full wealth management service should include advice on investment management, estate planning, retirement planning, tax, wealth protection and cash flow analysis. As well as your assets, wealth management needs to consider liabilities, such as expenditure, mortgages, tax, including potential inheritance tax when you die, education fees and long-term medical care. It is often as much about wealth protection as wealth generation.

Clearly, the full wealth management service covers many areas of expertise, from tax through pensions to investment management. It is unlikely that any one wealth manager will have expertise in all these areas. Either you will need a relationship with a number of wealth managers or your main adviser will bring in other wealth managers when required.

A typical example of how wealth management can help is a businessman looking for an exit strategy from his company. He may be preparing to sell his business for £10 million. He will be looking for ways to minimise his tax bill on the sale of his business and the most effective ways to protect and invest this wealth once the company has been sold.

The investment strategy will depend on his new objectives and risk tolerance, as well as existing wealth. He will probably want to plan for how the money is passed on to his children and grandchildren before and on his death. He may also want to give some money to charity but have some control over how this money is distributed and used through the establishment of a trust.

In this example, the businessman has turned to a wealth manager because of a life-changing event. But wealth management encompasses every aspect of your financial life. Whether you are buying a holiday home overseas, reviewing your savings to provide a retirement income or analysing the asset allocation in your investment portfolio, you are engaging in wealth management.

Each area of your financial affairs should not be dealt with independently. Wealth management should provide a co-ordinated plan of all aspects of your financial affairs by taking a big picture look at your finances. Rather than sell you a financial product and never see you again, a wealth manager should be on hand throughout your life.

One of the key phrases of wealth management should be “comprehensive financial planning”. A wealth manager should seek to find out what is important to you and your family. What financial goals do you have and how do you want to accomplish them? Over what period of time do you want to achieve these goals? It is about working through questions such as these with a wealth manager and then considering his recommendations on how to achieve your financial objectives.