When to Start Thinking About Wealth Management Services

Mar 3, 2020

Dollar bills curled and stuck in sand

Unfortunately, when some people think about wealth management, there is often the misconception that an advisor is only involved with the investment part of the process and that they will always charge a fee to advise you on that process. In truth, perhaps the biggest impact an advisor can make is to partner with a client and guide them through life’s important decisions and events. While portfolio management is an important function of an advisor and there are various ways that an advisor can add value – including actually making a portfolio more cost effective by helping clients find investments that keep the total cost of the portfolio low – advisors can also help with tax efficiency and by taking a total return approach to investments. In addition, they can go beyond investments to help you think about the total impact of your finances on your life and your personal goals.

How are investments and financial goals connected?

Investments and goals are directly tied to one another when thinking about reaching your personal goals. One can only achieve their goals (the reason for investing) by staying on track with their investment plan. And the investment plan is only one of the many ways that an advisor can help you with the important decisions that affect your life, as wealth management encompasses so much more.

Setting your investment goals

Here are a few of the questions to consider when thinking your own personal goals

  • Have you thought about where your income will come from after retirement? How and when you will start to take your social security benefits? How will you cover your medical care costs through retirement?

  • Are you prepared for the rising cost of education and do you have a plan in place to give your children a financial head start?

  • Are your investments generating the income you need for expenses now and for years to come?

  • What are your life, home, and auto insurance policies covering? Are these coverages enough?

  • What happens to your assets when you pass away or can no longer take care of them? Have you prepared for the tax liabilities your beneficiaries may face?

  • Do you understand how your equity compensation (RSUs, ISOs, ESPP) works and how these assets fit into your overall financial plan?

  • Are you as tax-efficient as you can be?

  • Have you developed a plan to give donations to a worthwhile cause or your favorite charity?

Partnering with an investment advisor

If you answered no to any of these questions or are unsure of the answers, it’s a great time to start thinking about wealth management and seeking advice from an investment advisor. Building a plan with an advisor can help you create a plan that works for you and achieve your goals! Contact us if you’re interested in creating a plan catered to your personal needs.

Peninsula Wealth is a Registered Investment Adviser. Advisory services are only offered to clients or prospective clients where Peninsula Wealth and its representatives are properly licensed or exempt from licensure. This material is solely for informational purposes. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. No advice may be rendered by Peninsula Wealth unless a client service agreement is in place. It is expressly understood that our firm will not provide accounting or legal advice nor prepare any accounting or legal documents for the implementation of your financial planning objectives.