Protecting Your Wealth

When it comes to wealth management strategies, many people are looking for a quick fix — a magic bullet that will achieve all of their financial goals in one neat, profitable and sustainable package. Most people are able to quickly understand the importance of wealth management as a concept and are willing to listen to nearly any approach that offers the secret to wealth management success. Of course, there are a lot of wealth management options and the best option is often unique to an individual’s particular financial situation and goals.

In the world of wealth management, however, what frequently separates the successful from the not-so-successful is a willingness to adopt disciplined principles as the core of a wealth management strategy. Rather than focus on this financial product, that financial product or some esoteric tax strategy, it may be of more long-term benefit to focus instead on cultivating a steady, proactive mindset when it comes to managing wealth.

Of course, there are definitely specific financial options that should be taken advantage of, but they should be taken advantage of in the context of an unwavering code of behavior when it comes to finances.

Here is a look at a few elements of a successful wealth management system that can’t help but move people in the direction of their wealth management goals.

Communicate With All Involved

Often, your individual wealth management goals are inextricably linked to the financial planning decisions of other people or other entities. A business owner, for example, often has his or her personal finances largely contingent upon their business finances.  In cases such as these, business succession planning is extremely important.

Family members also need to be considered when developing long-term wealth management strategies, especially as it relates to preserving wealth for future generations or planning for the retirement of a married couple. There can be a tendency in financial planning to avoid talking about money; such discussions are associated with stress for many families. To avoid even more unpleasant circumstances down the road that can develop from a lack of financial awareness, it is a good idea to make sure all family members are on the same financial page. When each family member understands not only the family’s overall financial strategy, but also the reasons and goals behind the financial strategy, it is much more conducive to success.

Communication is also key when it comes to dealing with your financial advisor. Some people have a tendency to compartmentalize their financial strategies, while some have found greater success moving all of their financial planning under the umbrella of one professional or one organization.

If incorporating the finances together seems extreme, just remember that communication between you and your financial advisors is essential. When everyone is on the same page, your combined financial plan can more easily move in harmony toward protecting and growing your wealth while preparing for retirement, as well.

Stay Organized

Many times, keeping finances organized means delegating responsibility. In a family situation, this can mean allowing family members to have more control over their individual financial situations. Not only does this make it easier for any one person to hold up their end of the bargain, it theoretically allows for more growth as different individuals (and different financial planners) to focus on their individual goals and specialties. To make this work effectively, though, you need to be sure that each family member is financially literate and that you trust each of your financial advisors.

Keep It Simple

The more successful you are with your money, the more tempting it can be to try out the array of financial strategies presented to you by usually well-meaning financial planners. The best philosophy to protect against this temptation is to live by the “keep it simple” mantra. When it comes to finances, simplicity means easy to understand and easy to implement with high levels of certainty and flexibility.