What is Comprehensive Wealth Management?
Comprehensive wealth management is a holistic approach to financial planning. The challenging part of a good comprehensive wealth management plan is to keep in mind that every situation, whether involving a family or individual, is unique. There are no pre-set plans that work for everyone because each investor has a unique financial fingerprint.
Why Change to Our Approach?
- You could save a significant amount of money on portfolio management
- One flat fee covers it all
- No matter how much we trade you do not pay any additional trading costs
Despite this fact, many advisors approach their clients with investment products, taking a one size fits all approach. This hurts the clients and, ultimately, the advisor’s reputation. A Financial Advisor is required by the Financial Industry Regulatory Authority, or FINRA, to follow suitability rules, meaning they must know their client’s financial planning needs by asking questions and looking at documentation prior to making a good recommendation. It is important to look at the financial planner clearly prior to hiring. Some tools that are available to investors but that are often overlooked are listed in our paper on vetting your financial planner.
What Should I Expect in the Initial Consultation?
A proper foundation for sound financial planning is built on realistic expectations fostered during a detailed interview process. The interview is really an open and honest conversation between the prospective client and the advisor. For the interview to work well, both parties must be honest and forthright or it will serve neither party. In the healthcare arena, if you go to see a physician due to an illness but refuse to answer questions or are dishonest, the diagnosis will be inaccurate and the treatment plan flawed. The same is true in the investment arena.
What is a Well-designed Portfolio?
Several factors go into achieving a well-designed portfolio. It starts with understanding your current financial situation and your financial goals and dreams. This is the foundation for your wealth management plan, and your financial advisor should use the interview process to gain specific information unique to you in order to build a solid one.
On this foundation, you and your financial advisor can begin building a tailored portfolio by taking into account the following:
- Duration/Time Horizon – How long can the portfolio grow prior your needing to use it?
- Risk Tolerance – What is your threshold for volatility in the financial markets?
- Diversification – Where should your assets be invested and why?
- Liquidity Needs – How much of the portfolio do you need to be readily accessible?
- Taxation – Should the portfolio be defensive on tax?
- Economic Conditions – Should the portfolio change with a shifting economy?
- Emergency Needs – Do you need an emergency fund?
- Where – What financial vehicles should be used to manage your wealth?
- Asset Protection – Are you in an environment where your assets could be seized due to a lawsuit or creditors?
Once the basic principles are applied, your financial advisor can design your portfolio allocations and monitor them based on your needs. At Edward Kennedy Mason, we know every client is different, so how we construct a portfolio will vary from one client to the next.
How Should I Invest and Why?
This brings us to the “where” principle, where to invest and why.
There are various vehicles to choose from, but which are right for you? There is no easy way to answer this question. Remember, it begins with a foundation, your individual foundation. Once that has been established, we choose from a multiple of vehicles including but not limited to:
- Preferred Stocks
- Exchange Traded Funds
- Inverse Correlated Exchange Traded Funds
- Certificates of Deposit
In short, we are proactive, helping our clients build up, defend and distribute their wealth. At Edward Kennedy Mason, of Sarasota, Florida, we are dedicated to the financial success of our clients. You can rest assured knowing that we have the ability to service the various aspects of your financial needs, no matter where you are on your financial journey. Whether we are planning for individuals, families, businesses, foundations, endowments or retirement plans, we have the tools to deliver personalized planning strategies and investment solutions.