First thing’s first; ‘wealth’ does not necessarily mean pounds in the bank. Yes money is a part of wealth, but so is property, a business or resources. Anything that goes towards contributing towards your quality of life, whether it be business or personal, constitutes your wealth.
Wealth Management is quite simply a financial planning process for managing the different factors that make up your wealth. It can be applied to anybody at any stage of their life. This process discovers where you are now, quantifies your goals and formulates a plan of action.
The Wealth Management service can be narrowed down to 4 key life stages: Wealth Protection, Wealth Accumulation, Wealth Preservation and Wealth Transfer.
One thing in life that is consistent is change and people’s needs and priorities reflect this. For example, a young couple’s prime concern may be protecting their lifestyle and their dependents in the event of death or illness and so their current lifestage is Wealth Protection.
Their next step will logically be Wealth Accumulation and making the most of tax efficient vehicles such as pensions and ISAs to help them build up their wealth.
When financial independence is achieved, the focus will likely shift to Wealth Preservation, which means utilising their assets in the best way.
In the latter stages of life, the emphasis will be on ensuring their legacy is passed on to future generations whilst still retaining control to ensure that the right people benefit and at the same time mitigating any potential tax consequences; this is Wealth Transfer.
In a nutshell, Wealth Management takes your current situation and draws a line which connects to your objectives in life. I am currently in the process of getting around to all of Sedulo’s client-base to see how Sedulo Wealth Management can help to connect the present to the future, but if you would like to jump ahead of the line to talk about your situation, please do not hesitate to contact me.