Individual investors need a comprehensive wealth management strategy for their changing goals and priorities.
Life is about change. So is wealth management. As investors move through the stages of life, they face a succession of financial challenges. Some challenges, like the need to prudently manage the relationship between investment risk and return, start early and never go away. Others, like estate planning, come later in life. These changing goals and priorities can be summarized as a cycle with four broad stages: WEALTH ACCUMULATION: During this phase, individuals are primarily focused on acquiring the assets they are likely to need to help meet their long-term financial goals. WEALTH PRESERVATION: As investors move into their peak earning years, their financial focus may gradually shift from asset growth to risk management—protecting their families and their portfolios from unexpected adversity or market volatility. WEALTH UTILIZATION: At some point, most individuals will need to draw on their accumulated resources to fund specific needs, such as college tuition costs or retirement expenses. WEALTH TRANSFER: Many, if not most, affluent individuals hope to leave a sizable legacy for their children, their grandchildren and/or their communities. Read Article: https://www.morganstanley.com/ideas/well-defined-wealth-plan Comments are closed.
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AuthorJoshua Nahas Archives
May 2017
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