Wealth Management: Why a Holistic Approach Matters
In the world of financial advisory practices, you have many options when choosing a professional to work with. Some firms strictly focus on trading your accounts like a stockbroker, there are firms that focus purely on portfolio management, and there are firms that look to help you understand your complete financial picture, that would be a wealth management firm focusing on a holistic approach.
Portfolio Management is Only One Part of Wealth Mangement
There are many facets to your overall financial picture and portfolio management is just one of them, while many people think that a wealth management firm will mostly focus on this item and only this item, I would argue that you would benefit from working with a professional who looks at all aspects of your financial life. Portfolio management is a key component in this equation, but so are how you will take income, what your tax strategy is, and whether or not leaving behind a legacy is important to you.
Different Retirement Stages Require Different Planing
For many people entering retirement or in retirement, the aspects of tax, income, investment management, and legacy are key components to the holistic approach offered by a wealth management firm that focuses on all aspects of your financial life. While we are in what can be called the consolidation phase or the decumulation phase of our financial life, having a plan that focuses on everything is paramount. For those of us in the accumulation phase many of these items are important not to lose sight of, but as you grow your assets your primary concern will be that of portfolio management and how to make your money grow.
How Holistic Planning Goes Beyond Investments
Wealth management firms that center around the holistic approach when dealing with finance offer ideas and solutions for such items as how to draw income, and what accounts to draw income from and in what order. Tax strategies such as possible Roth IRA conversions, or Qualified Charitable Distributions can make a big difference on the bottom line of your retirement plan. How you manage your portfolio is important as well. Are you taking too much risk, or are you taking too little risk? Does a market correction alter your long-term financial plan? Are you prepared if the market has a correction? These are all key components of what a wealth management firm can help you with.
Choosing the Right Solution for Your Family
In conclusion, some people like to manage their own assets and come up with their own financial plan and we think that is great. For those of you who do not want to deal with it or want to work with a financial professional, a wealth management firm with advisors who focus on the holistic approach may be the right fit for you. As I always say, I was terrible at auto shop in high school and to this day I am terrible under the hood of my vehicle, so I will seek out the right professional to help me with that task. If that is how you feel when dealing with financial matters such as the accumulation of wealth, consolidation of wealth, decumulation, or retirement phase of your financial life, I would encourage you to seek out a wealth management firm that focuses on the holistic approach. It is important to find the right fit for you and your family.
This is being provided for informational purposes only. The views expressed are those of Silver State Wealth Management and do not necessarily reflect the views of Mutual Advisors, LLC, or any of its affiliates. Investment advisory services offered through Mutual Advisors, LLC, DBA Silver State Wealth Management, an SEC registered investment adviser.