Wealth has variously been defined as:
“all material objects that have economic utility especially : the stock of useful goods having economic value in existence at any one time” https://www.merriam-webster.com/dictionary/wealth
“The total amount of money and assets an individual or group owns” https://sociologydictionary.org/wealth/
Usage Note
Wealth is typically measured by net worth, which is the total value of money owned and assets owned (e.g., real estate, stocks) minus the total value of all debts (e.g., credit cards, loans). The key point is- wealth is what you actually own, not what you have merely in your possession. https://sociologydictionary.org/wealth/
I would like to borrow from the sociology dictionary and the accompanying usage note above to define wealth. If wealth is measured by net worth, it is worthwhile to note that one must create a positive net worth and lock in the benefits. This to me is what defines wealth management. The discussion of wealth management should therefore include how to generate wealth, lock in the net worth, in such a way that at any one time, there is a positive net worth; thereafter devise ways to grow the net worth.
Creating wealth would require that you identify your niche/idea/business that will enable you have a positive net worth. Many of us can create or generate wealth but are unable to lock in the benefits or grow the wealth. Some of the reasons that we are unable to do this is because we choose the wrong “vehicle” for that purpose or structure our affairs in such a way that we do not obtain optimized benefits from our net worth. In this series, we shall analyse various arrangements that can facilitate locking-in of benefits and growth of wealth.
Next-? Trust, Limited Liability Company, Sole Proprietorship, Partnership, Limited Liability Partnership? Which works for you?