The best wealth management plan has nothing to do with “outside forces” beyond your control, but rather everything to do with what’s most important to you. Instead of feeling overwhelmed by the supposed complexity surrounding financial decisions, a straightforward wealth management plan can bring clarity and peace of mind about which strategies will work best for your particular situation.
Behind the scenes, a wealth management plan does involve number crunching and various strategies to implement. However, it should summarize this data into a document that represents;
- Three to four factors that are the most important to you.
- Action items that need to get done.
- A reminder of why you are doing them.
Similar to stock markets, no one can predict what will happen in the future. Life events such as a new baby, death in the family, or a medical issue can derail the best-laid plans. Therefore, it is critical to be flexible when it comes to wealth planning and life planning.
By doing the tedious but critical everyday steps that lead to a financially healthy life, such as maintaining a high savings rate, paying down debt, avoiding credit card debt, and preserving a high credit score, you can have the financial and personal flexibility you may need when life throws you a curveball.
Managing the Planning Process
Here are some of the critical aspects to keep top of mind when managing through an unexpected planning situation;
- Wealth planning is an ongoing process. As your life evolves, your wealth management plans should also evolve. What may have been a focus in your 20’s and 30’s won’t likely be your focus in your 40’s and 50’s. Stay nimble and don’t hold tightly to today’s plans, which could negatively impact your future.
- Goals can and will take a back seat to priorities. I could never have imagined having four kids let alone triplets. Goals and plans that I had pre-kids suddenly changed overnight. My wife, Theresa, and I had to focus on our many immediate priorities. This does not mean that you should let go of your goals if they still fit within the life that you ultimately want. You may have to delay them a bit to focus on what you must do today.
- You cannot prepare for everything, and that is okay. Have you ever been through a job change that wasn’t by choice? You may not have had any time to prepare for a change of that magnitude. However, everyone I know of that has gone through a situation such as this has bounced back stronger than before. With a healthy mind, spirit, and a reliable support system, just about any situation can be overcome.
The Meaning Behind Family Office
When life transitions and decisions happen, how do you go about making the right or best decision at the time? Do you go with your gut, do your own analysis, or talk to as many people as you can, which often can lead to overwhelming and bad decisions because people have their own biases just like you?
I have used the term Family Office to describe what TAMMA is and how I help to serve individuals and families in these very situations. TAMMA is here for;
- Families struggling to figure out how to live on one income after the loss of a job,
- An entrepreneur who is ready to strike out on their own, or
- The couple trying to figure out how to balance the financial priorities tugging at them, such as how to afford to save for retirement, kids’ education, and increases in everyday living expenses.
My definition of Family Office means offering wealth planning, portfolio management, and tax preparation/planning in a holistic manner that serves you best.
But just as important, Family Office means that you have a trusted partner to help you make the big decisions when major and minor life transitions happen. Knowing that you have someone that you can talk to and rely upon for unbiased advice that is truly in the best interest of you and your family.
We get you. We understand your challenges of raising strong, independent children, building a business or career, preparing for your future, balancing work and life. We have a devotion to planning finances and life transitions for families like you because we are you.
What I have found in helping people over the past 20 years is that clients put the most value and emphasis on having peace of mind.
People want to know that they have someone on their team who is always looking out for their best interest, which can be relied upon in a crisis or time of need. Helping to provide clients with peace of mind is the most rewarding part of what I do at TAMMA.