What is wealth management?
We get this question a lot. After all, our company’s name is Anchor Wealth Management, so it invites the question.
Anchor Wealth Management is a financial services company with two offices, one in Rockford and one in Lanark, to better serve you. We are passionate about helping people save and plan for their future. In this blog post, we thought we’d set the record straight by explaining wealth management. Contact us today for a complimentary consultation!
WEALTH MANAGEMENT DEFINITION
Wealth management is in essence what it says: managing your wealth. Presumably if you’ve been investing for a while, you have accumulated a fair amount of assets — so much so, that you find you may be in a higher tax bracket than you’d like to be. Having so much is a blessing in your life, but it’s also a responsibility to manage it for you, your children, and others you’d like to bless with it once you leave this earth. Thus, you turn to wealth advisors who can assist you to continue to grow your wealth.
Nitty-Gritty of Wealth Management
While financial planning takes a look at your goals and desires for your financial future, it is more about the details of investing. It is also geared towards those with lesser income. The goal of financial planning is to grow into wealth planning. Once you’re in the wealth planning phase, wealth management takes over. Wealth management adopts a more holistic approach beyond financial planning. With wealth management, we’ll take a look at your estate planning, look at your tax savings plan and retirement plan, and discuss your legacy — what you wish to leave behind. Let’s examine these financial tools just a bit further.
Financial Goals
From traveling the world to starting a non-profit, becoming an angel investor, or getting into real estate as an investor, wealth advisors can set the stage and steps for implementing these goals and dreams.
Investment Planning
Investments are still a big part of wealth management. Odds are, you already have a considerable amount of investments. A wealth advisor will take a look at what you already have and develop a plan moving forward to build upon your wealth.
Tax Planning
You’d be completely remiss if you didn’t plan for taxes in your wealth management strategy. Taxes take a big portion of your income anyway. However, by planning ahead, you can minimize this amount as much as possible, which leaves more money in your hands at the end of the day for wealth management.
Planning for the Worst
The more wealth you have, the more you stand to lose should the worst happen. You’ll want to take a good look at insurance, especially if you are a business owner or someone else who is in the public eye. For example, if someone trips outside your business, you are one lawsuit away from losing millions simply because you have that to lose.
Have an Estate Plan
This advice holds true for everyone: you will die, and you need a plan for when you do. No one wants to think about their death. In fact, most of us wake up each morning and take our lives for granted — until you lose someone close to you. You will need an estate plan to ensure the wealth you built goes to whomever you want it to go to.
HOW MUCH WEALTH DO YOU NEED FOR WEALTH MANAGEMENT?
This is a great question our financial advisors at Anchor Wealth Management are often asked. Since all of our financial planning services are customized to meet the needs of our individual customers, the line where financial planning turns into wealth management is blurred. Truthfully, when you invest in financial planning, you are investing in wealth management because no matter how little or how much you have, it’s your wealth.
When you call us for a complimentary review of your finances, we’ll sit down with you and begin the financial planning and wealth management process. Together with you, we’ll develop a comprehensive financial plan that can not only meet your financial goals, but can put you on the path to wealth. Call either one of our Rockford or Lanark offices today.