Broker Check

8 Wealth Management Issues

THE 8 WEALTH MANAGEMENT ISSUES

1. Investment Management 
In today’s investment environment, it is easy to be overwhelmed by the amount of information available. It seems that the media and so-called “experts” are always telling you what to do with your investments, even though they do not have any knowledge of your specific financial situation. Without professional advice, taking action could be detrimental to your investment goals.

2. Cash Flow and Debt Management 
Cash flow is the cornerstone of your wealth management plan. Without a clear picture of what money is flowing in and out each month, it is impossible to make informed decisions with respect to the other wealth management issues that affect you.

In addition to your cash flow, your debt level and credit history are also important barometers of financial health. Good debt management ensures you have credit when you need it, make wise borrowing decisions, and avoid disaster if you become overextended.

3. Family Risk Management 
Are you prepared for the unexpected? Even the best investment and financial plans can crumble if you have not properly prepared for the risks that exist for every family. Should something happen to you or a family member such as a disability, death, or a long-term care need, the careful planning and investing you have so diligently developed can be unraveled in an instant.

4. Retirement Planning 
People entering retirement are facing concerns that retirees simply did not face 20 and 30 years ago. As healthcare is improving and life expectancies rise, you are likely to live longer during retirement than past generations.

In addition to the concerns that exist, it is important to first establish a clear vision of what retirement means to you. Will you continue to work part time? Will you be traveling the world? Everyone’s vision of the “dream” retirement is different.

5. Education Planning 
Every child dreams about what they will be when they grow up, and a college education can be the most important factor in that dream becoming a reality. The available education planning choices can be confusing, and it is important that you have someone helping you who understands how your savings will affect your child’s or grandchild’s ability to qualify for financial aid, as well as the implications for your income, gift and estate tax situation.

6. Legacy Planning 
What type of legacy would you like to leave? Legacy planning is much more than just money. Simply stated, a legacy plan ensures that what you want to happen will happen at the time of your passing. However, because the subject of legacy is a complex and emotional topic, many families overlook planning before it is too late. If this topic is not discussed before a loved one dies, it could place your family in a difficult position of making decisions and deciding details when family members are the most emotionally fragile.

Having a plan in place reduces this stress and the red tape that goes along with losing a loved one. Without a good plan, the government may be in a position of dividing your assets between members of your family, and often they may not make the same decisions you would. Also, without a suitable plan, your family may be giving up a substantial portion of their inheritance to taxes, causing significant financial burden during a very emotionally devastating time.

7. Business Planning 
As a business owner, you likely face daily challenges such as having enough cash available to take advantage of opportunities when they arise, using the business as a vehicle to save for your and possibly your employees’ retirement, and protecting your business from a potentially devastating financial loss. The demands of running your company may leave very little time to focus on the important financial matters that can have a major impact on you, your family, your business and your future.

8. Special Situations Planning 
Throughout your life, as you pursue your long-term goals, some expected and unexpected needs will come your way, whether it is planning for a wedding, taking a spur-of-the-moment dream vacation, deciding to buy a second home or facing unexpected expenses due to unforeseen events.