Wealth management consultation utah involves many different facets, extending beyond just money management. After all, the concept of “wealth” itself is a subjective thing, and that concept will likely change throughout your lifetime.
Growing financial assets is just one piece of wealth management. It’s also about protecting what you have, preserving it through the minimizing of taxes, coordinating health, life, insurance, estate, and business interests, and establishing a legacy to pass on to others.
It’s not done alone – wealth management takes a team of financial professionals, pulling expertise from tax, investment, and legal arenas. Wealth management takes a holistic view of all these areas, and customizes solutions to align with your personal financial and life goals. When done right, wealth management twin cities mn builds on the successes you’ve already had, allowing for:
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- Personal freedom and choice
- Peace of mind and financial security
- Legal protection of assets
- Smooth transition of estate to heirs
- Smooth transition of business interests and succession
While there’s no single wealth management strategy that’s perfect for everybody, there are some key pillars of what a wealth manager or advisory firm can offer. These are five of the most important aspects of a sound wealth management strategy:
#1 – Form Strong Banking and Financial Advisory Relationships
It all starts with having a wealth advisor who acts like a financial quarterback, bringing in tax, legal, and investment expertise and understanding how they all work in concert to grow and preserve wealth. The best financial professional to seek out is a Certified Financial Planner, or CFP. CFPs are rigorously trained and vetted in managing investments, planning for retirement, minimizing taxes, and estate planning. They create a fiduciary bond with you, the client, and are legally bound to always act in your best interests.
Most wealth management teams also offer services like private banking, integrated investment portfolios, and estate planning. Private banking is very helpful to business owners and high-net-worth investors who have investments spread across many different asset classes.
#2 – Own a Diversified, Adaptive Investment Portfolio
By now we all know the benefits of owning diversified holdings in assets like stocks and bonds – taking a balanced, even approach is the key to long-term investing.
#3 – Protect What You Have
During your prime earning years, good wealth management practice includes setting aside consistent new money for investment, and seeking to grow wealth. But as you transition into retirement, the focus of your wealth plan will shift into more of a preservation and income-generating mode. Your priorities are likely to change, often in unexpected ways, so your portfolio should reflect this by being safe and liquid to provide you with the most options and choices.
You’ll also start thinking about estate planning, and how creating trusts for you and your family can best protect your assets and ensure they face the least tax burden possible. Having the right legal documents and account structures in place also ensures that the legacy you’ve created will have a smooth transition to your heirs and your philanthropic endeavors.
#4 – Monitor and Adjust
Sitting down with your wealth manager and creating your long-term financial plan is a critical first step to any strategy. At the outset you need to be clear with your wealth advisors about what you want your personal financial journey to be. They will use your investment objectives and financial goals to help set realistic expectations for you, and then put an investment plan in place.
But plans change, new variables come into focus, and life inevitably brings its surprises. So your wealth manager’s job is to constantly monitor your investments, and to keep abreast of any major changes to your financial picture. Different asset classes like real estate or private investments may become more of a focus in later years, and your wealth management team will keep working to keep tax bills low and your overall asset allocation in line with your targets.
#5 – Practice Perfect Patience
“Rome wasn’t built in a day”, they say. Neither is wealth.
It’s a fast-paced world out there and investments can appear volatile and unpredictable over the short-term. But if we widen the lens, we see the immense advantages of consistent, long-term investing in diversified assets. Wealth management success is about planning, yes, but it’s ultimately about patience.
Form a thoughtful financial plan from the outset. Listen to your advisors and have them listen to you. Set a course, and stick to it methodically. Then it’s just about practicing patience. Wealth management works best when it sits in the background, just consistently being there working for you. You have a life to live, and it’s best lived knowing that you have fiduciaries watching your back, thinking ahead, and preserving what you’ve earned.