Aligning Your Wealth Management with Your Life Goals

Wealth management today is all about you—your goals, your values and your financial well- being. Here’s how the latest trends and strategies fit into the five core pillars of wealth management…

1. Wealth Preservation and Investment Consulting

Achieve what matters most to you – The whole point of wealth preservation is to align your investments with your personal goals, so that you will have the means to reach these goals. As your financial advisor I work with a wide variety of tools—as well as a team of professionals who each have specialized expertise—to craft a financial plan that’s completely tailored to you. I then work with you to adapt this plan as your life and the market change.

The end result: You have a roadmap that maximizes your chances of reaching the milestones that are most important to you.

Benefit from smart diversification – Protecting your wealth means not putting all your eggs in one basket. Today’s strategies mix traditional investments like stocks and bonds with alternative assets such as real estate and private equity, which, as I discussed in my recent article on “2 Big Shifts in Wealth Management,” are now more accessible than ever.

By spreading out your investments and adjusting them over time, you can aim for growth while managing risk.

2. Wealth Enhancement

Keep more of what you earn – Wealth enhancement focuses on making your money work harder by legally reducing your tax bill. Strategies like tax-loss harvesting, Roth conversions and investing in Qualified Opportunity Zones can help you keep more of your hard-earned cash. Direct indexing also lets you optimize tax outcomes by managing your capital gains more effectively.

Why pay more taxes than necessary?

Ensure steady income – Whether you’re nearing retirement or just want more cash flow, there are smart strategies for ensuring a steady income. Think bond ladders, dividend-paying stocks and annuities that provide guaranteed income. These tools are designed to keep the money flowing while minimizing taxes, so you don’t have to dip into your savings too quickly.

Income equals lifestyle, so having a steady income is vitally important.

3. Wealth Transfer

Pass on your wealth, tax-efficiently – When it’s time to pass on your wealth, you want to do it in the most tax-friendly way possible. This is why it’s so important that your wealth management team includes an experienced estate planning attorney. There are types of trusts and other advanced estate planning tools available that can help you maintain control while reducing estate and gift taxes.

Why have your heirs pay more taxes than necessary?

Leave a legacy – Beyond just handing over assets, many people want to leave a legacy. Modern estate planning can help you incorporate your values into your wealth transfer. For example, you may want to set up a family foundation or donor-advised fund that aligns with your philanthropic goals. This can ensure that your legacy reflects what’s important to you.

Pass on your values to future generations.

4. Wealth Protection

Safeguard what’s yours – Protecting your wealth from legal challenges is crucial. Strategies such as using certain types of trusts and/or limited liability entities, as well as having the right insurance coverage in place, can shield your assets from creditors, lawsuits and other threats. Wealth protection is about making sure what you’ve built stays safe, no matter what.

Prevent legal challenges from devouring your savings.

Manage risks – Comprehensive risk management now includes everything from life and disability insurance to long-term care. For those with significant wealth, umbrella policies and captive insurance companies offer an extra layer of protection, ensuring that a catastrophic event doesn’t erode your financial security.

Risk management is an important aspect of wealth management.

5. Charitable Giving

Give back, smarter – Want to make a difference while also getting tax benefits? Charitable giving strategies such as donor-advised funds and charitable remainder trusts allow you to support your favorite causes while enjoying immediate tax deductions. These tools let you plan your giving over time.

Maximize both your impact and your benefits.

Practice impactful philanthropy – Impact philanthropy aligns your charitable giving with your personal values, ensuring that your donations achieve measurable outcomes. By integrating your charitable goals into your financial plan, you can give generously without compromising your own financial security.

Make a real difference.

Conclusion

When you align wealth management with your life goals you end up with strategies that help you preserve, grow, protect and pass on your wealth, all while supporting the causes you care about. It’s all about making your wealth work for you, in the ways that matter most to you.

If you need help getting this type of wealth management in place, let’s talk! As a highly- experienced financial advisor who is also part of a team of collaborative experts, I’m here for you.