Wealth management is simply managing your wealth and understanding the elements of a financial plan. There are 6 different areas of putting together a comprehensive wealth management plan.
Here are the 6 main areas that you should cover when it comes to wealth management. These will help you manage all aspects of your personal finances.
- Home and Car Insurance
- Life Insurance
- Disability Insurance
- Long Term Care
You want to make sure you have enough coverage, especially if something happens to you. Things such as home and car insurance are often required, but others types of insurance are important as well. These depend on your personal situation and what your short and long term goals are, as well as your family situation.
- Social Security
- Employee Stock
Will you have enough money in retirement to cover your basic expenses? How about being able to do all of the things that you want to do (travel, hobbies, etc…)?
Estate and Trusts
- Estates & Trusts
How would you like your wealth distributed after you pass away. You want to make sure everyone in your family is taken care of. What do you want done with your business?
- Tax brackets
- Tax implications (Investments)
- Tax harvesting
You may be able to help reduce the burden of taxes with the proper planning. Know how to setup your investments correctly.
- Stocks, Mutual Funds, Bonds, etc…
- Asset Allocation
What are your main sources for building wealth? How to divide your portfolio based on your risk tolerance. Know the fees associated with your advisor and the investments.
Cash & Risk Management
You need to understand where you are, where you want to go, and then choose a qualified wealth manager to help devise a plan to get your there. They will help you ask yourself the hard questions that need to be answered.
Many people don’t realize that your debt doesn’t go away when you pass away. Sometimes that debt can pass down to your family.
Here’s What To Do Now
These are the 6 main areas that make up wealth management and financial planning.
An experienced wealth manager will be able to:
- Recommend professionals who specialize in the other areas such as insurance, legal, and tax planning.
- Or work with your existing professionals in those areas.
This will enable you to tie all of these areas together into one main cohesive unit. This will ensure that they all work together to help you accomplish your short and long term financial goals.
If you would like help in managing these aspects of your life, give us a call today at 410-435-3270 or click here to request your strategy session online.