What Does a Solid Wealth Management Plan Look Like?

High net worth individuals have unique financial situations and unique concerns with regard to managing their wealth.

The Whitlock Co.’s financial advisors can help you by working with you to develop a solid wealth management plan based on your financial objectives as you gather wealth and age.

First, Set Some Goals

Any plan needs a direction, and the same is true for a wealth management plan. Set short-, medium- and long-term goals for managing your wealth and assets. Specify and figure a target date for each goal. Tweak your plan along the way if some parts of the plan don’t follow along with what you expect.

Short-term goals are those you hope to achieve within five years, such as paying off your debts, purchasing a new car, or increasing your investment income by 10 percent.

Medium-term goals occur from 5 to 10 years, like starting your own business, saving for a down payment on a vacation home, or investing in a second mutual fund.

Long-term goals are 10 or more years away, like understanding what kind of lifestyle you want in retirement and knowing how to earn enough income to get there.

Start With Your Net Worth

Wealth management plans need a baseline. Compile a list of your net worth, which is more than just looking at your IRS returns.

Make a list of all of your assets, including bank accounts, investment accounts, real estate, jewelry, valuable personal property, vehicles, collectibles, precious metals, and cash on hand. 

Then make another list of your debts, like credit cards, mortgages, student loans, business loans, and more.

Then Start Some Cash Flow Planning & Debt Management

Monthly budgets are a great place to start with wealth management. If you want to gain wealth, your income must increase, expenses decrease, or a combination of the two. 

Make sure to plan for unexpected expenses, such as car repairs and health care costs. Set aside six months of your income as an emergency fund. 

Then try to work on paying down your debt. Star with high-interest debt, like credit cards or personal loans, to pay those off as quickly as possible. Then you can work on paying off your car loans, student loans, and mortgages more quickly so you can move towards a debt-free retirement (if that is one of your goals).

Consider setting up a diversified portfolio of investments to foster long-term wealth. Mutual funds, retirement accounts, and savings accounts all offer varying levels of returns.

You can alter your wealth management plan as much as you want. For example, what if you want to retire five years earlier? Does that mean you want to save more for retirement to maintain the same lifestyle you have now, or would you rather have a decreased lifestyle so you don’t have to save as much and you can still retire?

A wealth management advisor can help you pinpoint certain strategies based on your unique individual situation.

Contact The Whitlock Co. for Financial Services for High Net Worth Individuals

The experienced team at The Whitlock Co. offers a full slate of financial services for high net worth individuals, including tax planning and preparation, wealth management, estate planning, consultation, and planning.
Contact us to request a consultation, and we’ll start the conversation.


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