The phrase “wealth management” might sound intimidating, but planning ahead and thinking critically about your assets is the best way to pursue an independent financial future. Whether you're just starting your career or are already established, wealth management can set you on a path to financial stability and growth. Our team of financial planners and investment strategists at David Wealth Management Group can guide you through the basics of wealth management and help you design a diversified portfolio to plan your future wealth and minimize risks.
But first, let’s answer one of the most fundamental questions with a clear, definitive answer.
How Do You Define Wealth, Exactly?
Wealth is about much more than just your current paycheck. It includes all sources of earned income, like salaries, wages, and bonuses. Wealth also includes your assets like real estate, savings, stocks, bonds, and other investments. Your future projected income, including expected returns from your long-term investment portfolio, also significantly affects your overall wealth.
How to Plan A Wealth Management Strategy
Reviewing your current financial situation is the first step toward designing a wealth management strategy that can withstand the test of time. List all your assets and liabilities to get a clear picture of your net worth; knowing where you stand financially helps you set realistic goals for the future.
Next, determine how much of your income can be set aside for investments and decide on the types of investments and approaches that align with your financial goals. You should also consider risk tolerance, your short-term and long-term financial objectives, and the time horizon for accessing any of your liquid (or easy to access) funds.
How Does a Time Horizon For Retirement Help Me Plan A Wealth Management Strategy?
One primary reason for wealth management is to prepare for your retirement. Considering a time horizon for retirement means planning how long you have until you retire and when you will need to use your retirement savings. The longer your time horizon, the more you can leverage compound interest and market growth to increase your wealth.
We recommend beginning saving for retirement as early as possible. Even small contributions can grow significantly over time due to the power of compound interest. If retirement is closer, that means that your time horizon is shorter and you might need a more aggressive saving and investing strategy to meet your goals.
How to Plan A Wealth Management Portfolio
Diversification is a cornerstone of a robust wealth management program. We advise clients to spread investments across different asset classes, such as stocks, bonds, and real estate. That helps reduce risk because different assets often perform differently under various market conditions.
Stocks are a common investment choice because of their potential for high returns, although they come with higher risks. Bonds are generally safer but offer lower returns. Real estate investments can provide income and appreciation over time.
If one investment performs poorly, others may perform well, balancing overall portfolio performance.
Regularly Review and Adjust Your Plan
Wealth management is not a set-it-and-forget-it process! Regular review and adjustments of your plan are required to keep the plan on track with your goals. Life events, like marriage, having children, changing jobs, or managing health, all can significantly impact your financial situation and necessitate strategy updates.
We Can Help You Plan a Wealth Management Strategy for Life
David Wealth Management Group is here to assist you in planning a comprehensive wealth management program for your future. Our team of professionals is dedicated to helping you achieve financial independence and growth through a wide range of services.
Contact us today to schedule a consultation and take the first step towards a prosperous financial future. We offer free consultations to review financial goals and serve CT, FL, GA, LA, MD, MO, NC, and SC residents from our locations near Lexington and Aiken, South Carolina.