Fundamental to the wealth management process is the creation of an investment portfolio. Creating your portfolio is more than a means to amassing wealth, however; it also involves earning, managing, and consuming money. Whether you’re investing for retirement, college, or another objective, you are faced with the task of quantifying your goal, developing an asset allocation strategy, and choosing the most appropriate investment vehicles.
Business planning focuses on issues specific to business owners and shareholders. For most business owners, the business is their most significant asset, and the financial success of that business has an immediate impact on the economic security of their families. Without proper planning, you may have difficulty tapping the value of your business to support your retirement, or your family may lose the value of your business at your death.
There are several ways to save for retirement- qualified employer-sponsored plans, individual retirement accounts (IRAs), executive deferral plans, and personal savings.
Common estate planning issues addressed in the wealth management process include the transfer of wealth, the minimization of transfer taxes, asset protection, and charitable giving.
A major goal of tax planning is minimizing federal income tax liability. This can often be achieved by reducing taxable income through income deferral or shifting. Deduction planning, investment tax planning, and year-end planning strategies can also help reduce your overall income tax burden.
Asset protection planning manages risks to your wealth. Lawsuits, accidents, property damage, and other financial risks are facts of everyday life. Asset protection planning seeks to transfer the risk of these events through insurance, repositioning asset ownership, and other protections under the law.