There are two sides of a wealth management strategy that a wealth manager must take into consideration. First, you have the investment diversification that includes traditional and non-traditional approaches that helps accumulate wealth. But higher rewards are only half the story. Risk management is also important, and is accomplished by identifying any potential source of risk (tax liabilities associated with personal or business investments, unsystematic risks associated with diversification, etc.) and developing a plan to minimize your exposure to it.
Remember, taxes, inflation and other factors are the things that eat away at your wealth accumulation and if left unchecked, can significantly reduce your overall retirement cushion. Also, in regards to a diversified portfolio, have a variety of assets can also help minimize the risks associated with the fluctuations of the stock market.
And don’t forget about the wealth manager. You want a person who is looking out for your best interests, so make sure your advisor sees eye-to-eye with your goals. The more closely your advisor is aligned with your long-term strategy, the more probable the relationship will succeed and prosper over the years.
If you have any concerns about your wealth accumulation strategy, please give me a call at 1-847-382-2600 or visit me at mooneylyons.com. I am here to help.
There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk. No strategy assures success or protects against loss.