Family Wealth Management: What is this? A process whereby individuals and couples put together a full financial picture of what they own. A qualified financial advisor can be a great source to help you with this process. They can work along with your CPA, attorney, bank and insurance agent to pull together all that you own for a complete financial picture. Most advisors will provide this as part of their regular service and others may charge a fee.
Family Wealth Management is taking into account all that you have in the present and being the best steward possible with a plan to preserve those assets for the future. These assets include your cash savings, cash investments (stocks), property investments (home, rentals, business, and land), retirement accounts, oil & gas wells, livestock and more. As your assets grow and you begin to diversify, it is important to have an advisor to help you manage everything. Each investment needs to be a compliment to the other investments (if you own interest in oil & gas wells don’t load up your stock portfolio with oil and gas stocks).
Include all family members (spouse & children) in the planning process. It’s important for everyone to know that there is a plan in place for the family’s future. This is a great opportunity to educate family members on finances and to help them appreciate the personal value associated with your accumulated wealth.
Most important, the only worthwhile financial plan is one that is put into action (executed). Too many times people will spend thousands of dollars on a financial plan that ends up on a shelf collecting dust and is never implemented. True wealth management includes a plan and an advisor who will meet with you regularly as part of a process. Life happens and things change so you must be willing to keep your plan up-to-date and make adjustments accordingly.
No matter your level of income or the amount of your possessions, a well thought out plan to manage everything is vital. Be wise and allow someone to come along side you and provide advice as the process transpires.