Three Distinct Stages of Wealth Management

We are experienced in the three distinct stages of Wealth Management which cover your family’s lifespan. We work with members of all generations: The Traditionalists, Baby-Boomers, Generation X, Millennials, and Generation Z.

Stage 1: Accumulation of Wealth

Early Accumulation Years: During our careers, we strive to balance our resources between immediate needs and long-term savings required to obtain financial independence.  

Pre-Retirement Years: We believe most people wisely limit their choices if they want eventually to replace their take-home pay plus cover the costs of health insurance, taxes, and often a margin to cover special expenses including hobbies like travel. Pre-retirement planning is critical to a successful long-term financial plan.  

Critical to this stage of wealth management is projecting your retirement capital trajectory.  We utilize financial planning software to project your sources of retirement income and expenses to see how long your capital may last.  We often summarize projections under three categories:

X1 Retirement: such a retirement projection shows a client may deplete their saved capital before their life expectancy.  From our experience managing these retirement scenarios are the most stressful as there’s little margin.  We often encourage clients in this situation to consider working longer, spending less, or a combination of these choices to allow their capital projection to look stronger.  

X2 Retirement: here client’s look to preserve their capital throughout their life expectancy.  Ideally, we encourage clients to strive toward at least an X2 retirement.  From our experience, this provides margin for unanticipated goals and a buffer for unexpected risks you might face in your future.   

X3 Retirement:  these projections illustrate a client’s capital growing throughout retirement.  Such clients may carefully need to consider their wealth transfer strategy and estate plan.  

Note: actual retirement projections fall amongst the range of these X1, X2, or X3 categories.   A clients’ choices: how much to spend, when to retire, etc., may result in different projected retirements.  It’s our objective throughout all stages, to monitor and update our projections to help clients understand the ramifications of their financial choices.  

Stage 2: Distribution of Wealth

Golden Years:  One of the most joyful stages of our lives should be retirement, but this life transition holds many changes that can be stressful if not adequately prepared for.

Platinum Years:  Over time, we assist families through many transitions. Incapacity challenges even the most prepared and having a team who knows you and can assist you and your family is a great benefit. For those with financial margin, helping family and the community you serve may offer rich rewards.

Stage 3: Transfer of Wealth

Knowing you may leave a legacy to your family or the charities you support is a great joy.  The loss of our loved ones is inevitable and never easy.  We have expertise coming alongside surviving family members with the many questions that arise.

Stages of Wealth Management Copywrite © 2019