A Good Plan Gives You Peace of Mind

Wealth management planning is a process that demands a long-term outlook. It can be challenging, however, to stay on track in an evolving economic environment. Let's look at 5 tips for keeping your wealth management planning efforts on the right track.

Get Organized

If you can't answer within a reasonable margin of error how much wealth you have right now, then you are not organized enough. Make sure your accounting situation is in order. If it's not, conduct a thorough audit of your assets and liabilities. Until you can lay the details out straight when you ask a wealth management planning services provider for help, you're not prepared to do any planning.

Establish Your Goals

Define what you need to see from your wealth at several medium- to long-term horizons. Are you looking to make a major purchase, such as a new home, in the next couple of years? How focused are you on passing your wealth along to your descendants if you have any? Are you comfortable taking a major hit on a 10-year timeline investing aggressively to produce greater growth on a 25-year timeline, or is wealth-preservation key?

Identify All Risks

It's impossible to predict everything that might impact your wealth negatively, but you can assess the damage many what-if scenarios might produce. Someone who has invested heavily in residential real estate, for example, might need to think about how to hedge their risk against an unforeseen mortgage crash.

You can't predict when most risks will nail you, but you usually can predict how badly a negative move might crater your wealth. Plan accordingly.

Seek Outside Perspectives

In the same way that a lawyer will almost always hire another attorney when they need legal health, a wealthy person should seek wealth management planning services. You'll receive an unbiased perspective. Even if you're not inclined to follow a third party's advice, you should have someone there to provide more than simple approval for every wealth management idea you consider. Hearing the pros and cons of different strategies can help you fill the gaps even if you're confident in what you're doing.

Take Time to Reassess Your Situation Annually

Putting your wealth on cruise control might seem like an ideal outcome, but even the most robust garden requires pruning and new planting. Set aside time every year at a predictable time, such as after-tax season, to talk with a professional about where things stand, what's working, and which trends seem troublesome.