Wealth management requires a very integrated and holistic approach to meet the needs and goals of an individual, family, or organization. Developing a meaningful plan to accomplish whatever those goals may be requires a comprehensive method that considers topics ranging from investments, cash flow, and risk mitigation to estate planning, tax services, and philanthropy. Making sure each of these aspects works together cohesively is essential for a successful plan.
Everyone is unique in their financial position and personal circumstances, so how do we develop a customized strategic plan that will be best for each client? The bullet points below outline the steps and considerations we take when collaborating with a client on their wealth management plan.
Before building a wealth management plan, we must take time to understand each client’s current personal and financial circumstances. Obtaining a thorough and accurate picture is imperative. To get an accurate understanding, it is important to gather personal and financial information such as family circumstances, values, risk tolerance, income, expenses, employee benefits, current investment accounts, insurance, estate plans, etc. This helps set the foundation for tackling the next step in this process: setting goals.
Once there is an understanding of a client’s current financial situation, we want to know what their goals and priorities are. Are they hoping to pay for their kids’ college? Do they want to retire in five years? Do they want to leave money for their grandchildren? Or become more involved in philanthropy? Typically, there are numerous goals a client would like to accomplish. Part of our role is to help prioritize those goals and determine what is possible in a financial plan.
After we understand the current situation and establish goals, we analyze the details and build out various projections to see what is possible and what steps need to be taken to move forward. When some objectives are not possible, we work together to develop alternative options that are more reasonable. We then present our proposed course of action to the client and work collaboratively to come up with the plan we will move forward with.
We help facilitate the process of implementing the plan that was developed and agreed upon. This step is multi-faceted and may include coordinating an array of items, including account consolidation; portfolio rebalancing; and making introductions to or connections with estate planning attorneys, accountants, insurance advisors, etc. Taking action can sometimes be daunting, which is why we do as much as we can on our side and provide the extra nudge when needed.
We regularly review the financial plan, update goals, and rebalance the portfolio when appropriate. We believe that there is no “set it and forget it” strategy that works when it comes to a financial plan. Whether it is personal, professional, tax law, or something else, there are always changes and it is crucial to consider the impacts and be proactive about making updates.
We have found working through the planning process together is just as important as the plan itself. Situations and circumstances always change, so being familiar with the process helps clients adapt and make updates as needed.