Financial Planning
April 15, 2022

Why Is Wealth Management Important?

Stewart Willis
Co-Founder & Co-Owner Asset Preservation Tax & Retirement

Why Is Wealth Management Important?

It’s difficult to plan and set aside resources for the future. In a fast-paced world, everything is “now now now” leading to “I’ll worry about this later.” But without a thorough strategy to manage financial success, you might find yourself strapped for cash later in life. Especially with inflation running rampant these days.

The past is the past. Maybe your 20s and 30s were so hectic that you didn't think you’d ever need wealth management services. Or, maybe the long-term benefits to effective wealth management early on were hard to see or believe. 

Either way, the best way forward is to begin financial planning with the help of trustworthy advisors that have your best interests at heart, not theirs. Here’s a quick breakdown of why it’s also important to manage wealth with a clear, experienced, and concise plan - instead of planning on your own. 

Cash flow and earnings optimization

The most significant benefit of professional wealth management is optimizing your cash flow and earnings towards a series of specific financial-related goals. In other words, you have to make a strict budget, adhere to it for years, and remain in an agile financial position to adjust the plan as needed if unforeseen expenses come up. 

This is more fun than it sounds - imagine yourself a year from now, just watching your nest egg grow from some simple steps you took to set aside money.

It’s worth noting a wealth management strategy isn't an ordinary budget because it includes more than income and monthly expenses. For example, estate planning requires an in-depth dive into inheritance law that most people don't include in an annual household budget; however, it's a standard day-to-day activity for wealth management professionals.

Goal-based planning with milestones that make sense for you

Think of a wealth management strategy as your long-term blueprint to enjoy the life you’ve always wanted. This means different things for different people. A young millennial couple who just had their first child will have very different financial goals than an early retiree who's already raised a family. 

Most likely, the young couple will want to secure their child’s financial future and set money aside to pay for college and living expenses, but what about the early retiree? There’s no end to the possibilities as we grow older and have a more mature understanding of how we want to live, and wealth management is how you achieve that ideal.

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Taxes Taxes Taxes

Taxes are another consideration, and for many, that's why they make a wealth management plan in the first place. Suppose you're an entrepreneur and you're experiencing a reasonable amount of success. In that case, you already know how tangled business taxes can be, especially if you live in a state with income taxes or other financial regulations. 

For instance, wealth management in Arizona looks different from wealth management in Texas, where there is no state income tax. Most people hire accountants to keep track of everything, but a wealth management strategy considers all taxes that you have to pay now and those you might have to pay in the future. Without a process in place, you could get over your head with unpaid taxes if you didn't plan ahead for continued success.

Consider getting help from a pro

Certainly, there are many other reasons why wealth management is essential for your financial future, yet these are the top three reasons it's crucial to ensure your quality of life as you progress through each stage of your career.

Asset Preservation Tax & Retirement Services can help you today if you’re ready to make the first step. Getting started is easy. All we have to do is find out where you stand financially, identify your personal financial goals, and create a plan to reach those goals.

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You spent all your working years accumulating this wealth. Now it’s the time to make the most of it.