Often, we pay too much attention to markets, investments, or day-to-day stock prices. While these are important to monitor, financial success comes from a well thought out plan that focuses on your unique long term objectives.

A financial plan allows you to live your life. It prioritizes what is important to you and orients your financial decisions towards those values. When your finances are aligned and invested with a detailed plan in mind, your overall financial picture becomes clearer and you have confidence in the decisions you’ve made.

A financial advisor helps you build this plan, shows you the outcomes that are achievable, and guides you through the inevitable changes that life brings. A good financial plan is a roadmap to wealth creation and the ultimate provider of financial peace of mind. A good wealth manager navigates this path with you and helps to steer in the right direction when it needs to evolve.

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Start Building Your Own Financial Plan

Your Investments should align with your risk tolerance and goals. A defined investment strategy that incorporates your needs for short, intermediate and long term objectives is a key component to successful planning.

Wealth management means investing towards these objectives, but also using the appropriate strategies in various investment accounts. A tax efficient, cost effective investment plan compounds over time, growing your wealth and saving you money.

Learn more about the Powerful Force of Compounding Returns

Strategies such as asset location, loss harvesting, strategic withdrawals, and optimal investment selection can substantially save on the taxes paid on your investments. Financial Advisors should proactively look to reduce your investment costs and lower your tax bill. When it comes to tax strategy, timing is everything.

Lowering your tax bill starts with planning for both the short and long term. By aligning your tax strategies with your financial strategies, the money you do not pay to the government can help fund your financial future. Like your financial strategy, your tax strategy operates in two time frames—now and later. “Now” covers the 12 months of the current tax year, such as income tax preparation and filing. “Later” covers long range moves, such as maximizing the long-term tax benefits offered by a qualified retirement plan such as a 401(k). Either way, timing is critical. Retaining as much of your gross income as possible should be an ongoing objective, not something that happens only at tax time.

Read more about Understanding Capital Gains Taxes and Planning

The firm does not provide legal or tax advice; tax-aware planning and coordination with a tax professional, if desired, are part of the process.

Cash is an important component of Wealth Management and can be an effective tool in your Financial Plan. By strategically placing cash in an investment strategy it can serve multiple uses, such as:

• it’s own asset class that reduces risk in a portfolio

• ‘dry powder’ investment tool to take advantage of market downturns

• emergency buffer that helps you get through a downturn without having to sell investments

Once identifying an investment plan and incorporating cash for everyday needs, excess cash can be effective and even earn its own investment return. Having a separate cash strategy alongside other investments helps to be nimble and flexible in your plan. If an advisor doesn’t have a strategy to earn a cash return above most bank or savings rates, they should be helping to find one.

For many, the thought of starting an investment savings plan is overwhelming. Getting your arms around income and spending can uncover opportunities to save and grow wealth. A good financial advisor will help to identify those opportunities and recommend an automated savings plan that you are comfortable with.

Start with this Checklist to Help Manage your Money