What are the Best Tips for Strategic Wealth Management?

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  • Written By: H. Bliss
  • Edited By: W. Everett
  • Last Modified Date: 05 September 2019
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Strategic wealth management means planning finances to maximize income and profit and minimize expenditures. Common threats to wealth retention include liabilities, badly performing investments, and taxes. Easy tips for strategic wealth management include starting saving and investment early in life, investing in a diverse portfolio, and minimizing costs using retirement and estate planning. A major part of strategic wealth management involves minimizing taxes on income and estate inheritance. Maintaining records with an accurate value of wealth is also important in protecting its true value.

Estate planning is the part of strategic wealth management that involves planning how beneficiaries, like family, friends, and charities, will receive disbursement of wealth near the time of death and after death. Estate tax, also known as inheritance tax, changes year by year. If the disbursement of the money in an estate is not planned properly, much of it can go to the government tax collector. One popular means of reducing taxes on an estate and inheritance is gifting money to beneficiaries before death. Most areas have a limit on how much a recipient can receive as gifts from one person. Making yearly maximum gifts before death can help reduce the amount of the estate that can be taxed.


Do not be afraid to hire reputable professionals to handle difficult or unpleasant aspects of wealth management. Hiring professionals for strategic wealth management tasks like accounting or investment can simultaneously relieve the individual of the burden of the task, and get the task into the hands of a qualified professional who can perform it more accurately and efficiently. For example, it may be better to hire a professional to protect wealth against legal liabilities than to try to prevent and address liabilities alone. When hiring professionals to help manage wealth, it is important to choose a reputable professional. Though reviews and testimonials can be helpful in finding a candidate, consulting a friend for a recommendation may be the best way to meet reputable and effective strategic wealth management professionals.

Diversifying investments is a means of reducing investment risk by investing in many different types of opportunities. Types of investments with which a portfolio can be diversified include popular methods of investment like stocks and bonds, but also include other ways of investing, like buying or starting a business, life insurance or retirement plans. Investing money into different types of investment opportunities helps ensure minimal losses if an investment drops in value.

Above all, keep a strategic wealth management plan simple. Like a skilled juggler with too many chainsaws, even an experienced wealth manager cannot handle an overcomplicated system. Too much diversification can make it difficult to pay attention to investments, which may cause errors in investment that can cost big money.


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