What Does Wealth Management Look Like?

By Peter A. Racen, CLU®, ChFC®, CASL®, AEP®, CFP®
Chief Executive Officer
Racen Wealth Management

When it comes to planning out your financial future, there are countless options to choose from that promise impressive performance and sustainable returns. But, when you look closer, what does true wealth management look like for investors? We’ve got an answer for you.

One of the key components of effective wealth management is advanced planning. This discovery process helps your advisors gain a little bit more clarity on what your vision, values, and goals are for your money.

When there’s a high level of clarity on those topics, you and your advisors can start planning a roadmap of your financial future with the appropriate strategies, tactics, and tools.  

Breaking it down even more, there are four key components to advanced planning:

  1. Wealth Enhancement — This category focuses on tax and cash flow management solutions. It can be easy to lose track of where your money is going. Effective cash flow management and planning can help you find extra cash for your future. Tax management, on the other hand, helps structure your portfolio for optimal efficiency.

  2. Wealth Transfer — This section is all about providing for future generations. With a trusted advisor, you can ensure that you’re able to transfer your wealth in a tax-efficient manner to the next generations. Tax mitigation also plays a major role in this phase.

  3. Wealth Protection — In this section, it’s all about mitigating risk. This is also where legal expertise is crucial. Attorneys, in tandem with your advisors, will make sure that the proper legal structures are in place, along with the necessary insurance, to ensure your financial future is in safe hands.

  4. Charitable Giving — We all have causes and programs that we’re passionate about. A good wealth management strategy is able to maximize your goals for charitable giving while also managing the impact of taxes.

Once you have your plan, it’s all about implementation. No matter how great a plan is on paper, if it’s not properly implemented, you could be leaving yourself open to unexpected risks. This means getting into the nitty-gritty details to make sure trusts are funded and that the right documents are in place.

But, even after going through those four components, the job of maximizing your financial future is never truly done. It’s important to regularly review your plan to make sure nothing has been overlooked.

While some of the practices in these categories may seem easy to accomplish, it’s important to have a trusted expert in business and estate planning by your side. This expertise and experience can provide you with the confidence that your money is working as hard as it can.

And just as important, this guidance can give you peace-of-mind that your financial future (and your family’s future) are in secure hands.

The information contained in this article is general in nature and is not legal, tax or financial advice. For information regarding your particular situation, contact an attorney or a tax or financial professional.

Racen Wealth Management

Peter Racen, CFP®, CLU®, ChFC®, CASL®, AEP®

Racen Wealth Management


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