A Quick Guide
Are you interested in investing your money? Or are you looking for a way to grow your wealth?
If so, you may have heard about wealth planning services, which are, as the name suggests, a great way to help you build and preserve your wealth. As a rule, these are services that you can get access to via financial advisors, estate planners, and wealth managers, all with the aim of meeting your financial goals.
However, you may be curious about the options that are available in the realm of financial strategies and planning services, and here, you will be walked through the options to help you make sense of the process.
Financial Planning
One of the key components of wealth planning services is financial planning.
As far as tax and wealth planning services go, this involves assessing and analyzing your income, your expenses, your assets, and any liabilities that you may have to help create a strategy for meeting your financial objectives.
For many people who look into wealth planning, this option will also involve budgeting, managing debt, and retirement planning, which may require a bit of a financial overhaul. The end result is that you will be able to sustain your current lifestyle in the long term.
Investment Management
Next on the list is investment management.
The aim of this segment of wealth planning is to grow your wealth with assets. These are typically via stocks, bonds, investments, and real estate. Wealth managers or financial planners will aim to assess your risk level when recommending investment management options and will devise a tailored investment strategy.
This will also involve active portfolio management from your wealth managers or financial planners to help monitor the performance of the stocks, bonds, or investments to ensure that you get the desired outcome from this service and wealth planning option.
Tax Planning
Tax planning was touched upon earlier, and, as you can understand, a core part of wealth planning is to aim to minimize tax liabilities without breaking the law! With wealth management services, your advisor may recommend tax-efficient investments, giving to charity, income splitting, and even the use of accounts like IRAs and 401(k)s, which are tax-advantaged accounts.
Estate and Legacy Planning
Another option to help maintain your wealth is estate planning. This is somewhat similar to writing a will, but it is specifically focused on ensuring that your wealth is transferred to your beneficiaries or charities based on your wishes. This will involve setting up a trust and a power of attorney while also minimizing estate taxes.
Risk Management and Insurance Planning
Of course, this is all well and good but as is the way with life, unforeseen risks and issues can knock planning out of sync. So, undertaking wealth planning involves evaluating your life insurance and disability insurance as well as looking into financial security options.
Retirement Planning
Last but certainly not least, retirement planning will help you to secure a comfortable life when you finish working, as wealth planning will assess your retirement needs and create a suitable savings and investment plan. This will usually include pension planning, as well as withdrawal strategies to ensure that you have a sufficient income throughout your retirement.
