Many people who reach out to a financial advisor are first seeking help in creating a financial plan. While a financial plan can be a great start, there are limitations to creating a one-time financial plan.
In this episode, a few of our wealth advisors break down how wealth management works from the tax planning, retirement planning and risk planning perspectives.
What is Wealth Management?
Many are aware of the wealth management terminology, but it can be tough to understand the distinctions between a one-time financial plan and a wealth management relationship and how it could benefit you.
People tend to contact a financial advisor with a pressing financial question that creates uncertainty about their financial future. They may simply want to know if they can retire without running out of money. Or perhaps they are looking to see if they’re invested appropriately. Others are interested in saving more on taxes.
While a one-time financial plan can give you a status check, it can fall short of helping with the accountability and implementation that most people are looking for when managing their finances.
To effectively manage, implement, and monitor your finances takes ongoing time, knowledge, and attention. This accountability could be the difference in reaching your goals or not. Too often, people put off asking themselves what the risks could be if they do a poor job managing their own financial picture.
The benefits of the wealth management relationship
Clients can save time and achieve more consistent implementation of their financial plan through a wealth management relationship.
One of the primary reasons that people seek financial advice is to understand all the possible tax-saving opportunities available to them. A wealth manager can help you to maximize your tax-saving opportunities by fully funding tax-deferred retirement accounts, and using Roth conversions when appropriate.
Wealth advisors look at the long-term picture to help you lower your lifetime tax rate. A fiduciary financial advisor will put your interest first and analyze your finances with a fine-toothed comb to look for tax-saving opportunities, ways to maximize your retirement planning and assess your risk management plan.
Outline of This Episode
[1:34] Tax planning benefits that wealth management can help with
[7:55] Utilizing the mega backdoor Roth
[11:05] Using a brokerage account to improve retirement flexibility
[18:30] Maximizing Social Security
[22:54] When life events change financial plans
[25:50] Handling risk management
[29:58] Preparing for non-insurance risks
Resources & People Mentioned
Episode 148 – Developing a Retirement Withdrawal Strategy
Episode 178 – 10 Tax Planning Opportunities You Don’t Want to Miss
Will Holt
Will Holt is a Certified Public Accountant and Certified Financial Planner™. He has been a trusted advisor in the Triangle area for fifteen years, and with his history in the field of public accounting, is uniquely positioned to assist clients with complexities in the area of taxation.
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Allison Berger
As an experienced Financial Advisor and partner, Allison builds custom financial solutions to enhance today and enrich tomorrow for our Wealth Management clients. Allison has a particular interest in working with clients in or on the cusp of retirement who want to delegate their portfolio management so they can enjoy life.
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Grayson Blazek
Grayson is a CFP® who helps clients plan for retirement, make wise investment decisions, and identify advantageous tax strategies. As a fee-only advisor, Grayson believes in offering comprehensive financial advice that is always in his clients’ best interest.
![avatar](https://www.financialsymmetry.com/wp-content/uploads/B00203221.jpg)
Chad Smith
Chad Smith is a Certified Financial Planner™. He is an active member of NAPFA, the Financial Planning Association, and FPA’s NexGen. He has been quoted and appeared on WSJ.com, Bloomberg.com, Businessweek.com, Msn.com, Financial Planning Magazine, Triangle Business Journal, and Investment News.