Wealth management is not only about dollars and cents. Sound wealth management requires conscious, informed control of resources so as to meet family obligations and enable satisfying family experiences.
We all have moments that we look forward to, savor, and remember. People we must care for, support, and celebrate. Milestones to reach, ambitions to accomplish, and goals to complete.
We exercise wealth management to create financial stability, so a sudden change in circumstances does not derail the chance of experiencing precious moments, protecting our loved ones, or achieving our goals. This is a lifelong endeavor. As our lives and needs change, so do our goals, and adjustments may need to be made, so we know we will still be able to progress the way we choose, rather than be buffeted by the economic winds.
Modern wealth management may look effortless from the outside, but, from the inside, it is a continuous effort to meet significant challenges.
A comprehensive financial management plan considers more than present day needs. It accounts for future risks and changing priorities. It relies on more than budgets to keep expenditures below income so as to build and preserve financial independence. It includes leveraging assets, mitigating risk, and managing liabilities. The services to execute such a plan can be understood within the four pillars of wealth management.
The four pillars of wealth management for lifetime financial stability
Build. Manage. Protect. Transition. These are the watchwords of the wealth management account. Through years of patient and intelligent management a significant portfolio may be created, and provide a substantial resource for family financial protection. These watchwords serve as the foundation for the four pillars of wealth management:
- Investments – During our income producing years, we save money, and we can invest it, with the goal that the returns create larger substantial growth. A client advisor can design an investment portfolio appropriate for your current situation, future goals, and personal investment style. Time can be an extremely valuable asset in investing. An early investor can outgrow a late bloomer, sometimes even with a significantly smaller contribution total.
- Banking – Markets fluctuate, and your investment portfolio should not account for your complete financial picture, so you don’t become overextended. This means looking at your loan obligations, income and expenses, and understanding how to manage liabilities. Meeting these obligations means being able to do things like take out a loan to support a business, secure a lower interest rate for a mortgage, or feel secure in your financial future.
- Risk management – It is not possible to take risk out of life, but it is possible to mitigate the financial damages unforeseen circumstances can cause. One can ensure that their loved ones can still accomplish goals through life insurance, that their current income won’t disappear with disability insurance, and that they can remain independent in the home for longer with long-term care insurance.
- Trust/Estates – After assets are accumulated, it is important to ensure their continued management and to employ them to accomplish specific goals. For example, a living trust can ensure that a professional can step in right away and continue wealth management in the case of incapacity. Trusts can also create a smoother transition of wealth with more family privacy and quicker access to assets rather than having them flow through probate.
Wealth management is a complex driving force in our lives, so much so that it may consume all of our time. That’s why it may be helpful to employ the services of a client advisor, such as those at Arvest Wealth Management, so that you can focus on what is most important to you.
How does a client advisor ensure I have these pillars of support?
At Arvest Wealth Management, we are passionate about wealth management because we know that done properly, it can lead to happier lives with more magical moments. Each client is unique, so we start the process of discovering where that client currently is in their financial life cycle and what they would like to accomplish. Together, we’ll review your financial aspirations in order to articulate goals so that they become concrete and measurable. Your goals may include for example:
- Creating an investment portfolio that based on your risk profile.
- Balancing a budget with uncertain income streams and expenditures.
- Financial protection in the event of misfortune.
- Retiring without running out of funds.
- Maximizing the benefit of your charitable contributions.
- A lasting legacy for heirs.
Next, we’ll help inventory your current assets and liabilities, income and expenditures, and compare and analyze them against your goals. This will allow us to recommend the actions needed to accomplish your goals and to discuss the risks involved. We’ll create and present an easy-to-understand plan which is designed to be within your comfort zone and to achieve your priorities.
Should you proceed to implement our plan, we would be pleased to assist you by providing continued supervision of your wealth management. This would allow us to quickly adjust your plan based on changes to your personal situation and to market conditions. Should major changes occur, we would do an overview to ensure everything is still aligned and you are on track for your goals.
Whether you’re at the beginning of your journey to financial stability and independence or are nearing its conclusion, please let us know if you’d like a consultation about how modern wealth management can run in the background so you can focus on life’s magical moments as they come up.