Building and managing wealth is serious business to those who are dedicated to it, and to those who help dedicated individuals attain (and maintain) financial security. Unfortunately, many people who want to build wealth fail to do so because they are not sure how to go about it. Even with financial advice, things won’t always work out the right way, but there are specific areas to focus on when you want to see your portfolio grow.
Consider All Your Options
Before you shy away from stocks, bonds, real estate, or another type of investment and wealth management strategy, make sure you take time to get the facts. If you’re only scratching the surface, or if you have a financial advisor who has said you should avoid something but hasn’t said why, you could be missing out. Knowledge really is power, especially where wealth management is concerned. Some types of investment may really not be for you, but until you have all the information, you won’t be able to make the best, most informed decision for your specific situation.
Stay The Course
Once you’ve invested, it’s time to leave your money alone. You want it to grow and mature, and if you move it around too much you could be harming its wealth building potential. It can be hard to leave money in investments that aren’t doing well, but staying the course when there is short-term volatility in the market makes sense. Those downturns will work there way back around to upswings. If you’ve invested wisely that will show over time, so it’s important not to let a bad moment cause you to pull your investment. You could lose much more money that way, when the market rebounds and your money isn’t in it.
Be Aware Of The Fees
When you invest your money, there will be fees. Financial advisors generally take a small percentage, although some of them work on a flat fee scale for trades and other changes to your portfolio. You can also invest your money on your own, without meeting face to face with an advisor, but that can be risky if you’re not well-informed about the market. If you do decide to invest on your own, keep in mind that you will still have fees, and choose one of the larger companies. They are generally more stable and offer lower fees and better investment options.
Know Your Investment Company
Companies can come and go, and you don’t want to be part of one that’s suddenly gone. Choose a company that has a strong reputation and that has been around for a long time. While it’s not a guarantee that there won’t be problems, it makes those problems far less likely to appear. Then you will know that your wealth is being managed correctly, and that the company you’ve entrusted with your investments isn’t going to suddenly close down or experience financial problems. That peace of mind is important, especially as your portfolio grows.
Plan For More Than Retirement
Most people build and manage wealth with their eyes on retirement. That makes sense, but there are other areas of life that you might want to plan for, as well. College for your children, or even for yourself, a new home, travel, and other facets of life can be very important, and depending on how much they mean to you, you may want to consider some wealth building sources that aren’t focused solely on your golden years. That way you can save for retirement, but also have money to spend on other things at an earlier time in life.
Having some liquidity is very important. You don’t want to put almost every dime you have into investments that you can’t get money back out of quickly. Often there are large penalties for removing money from retirement accounts early, and some types of investments, like real estate, really aren’t liquid at all. As you invest, work with your advisor as to how much of your portfolio you should keep liquid, so you have the opportunity to get access to cash if you need it in an emergency.
Protect Yourself The Right Way
As much as you love your spouse and family, you also have to protect yourself. What would happen during a divorce, or if you passed away? Would your assets and the wealth you have built up over the years go to the right place or the right people? If you’re not sure about the answers to those questions, now is the time to find out, and to make any necessary changes. That way you don’t have to worry about your finances if you divorce, and you can rest assured that your wealth will be distributed properly in the event of your death. Many people ignore these things during wealth building, but they are very important.
Look At Your Legacy
The legacy you leave to your family matters, and if you don’t have a family then there may be charities, good friends, or others you want to leave your wealth to. Consider that carefully before you make your investments, so you can have a better chance at building the level of wealth that will let you do the things that matter to you in life and also leave something for after you’re gone. These kinds of issues may be much more important to one person than they are to another, but if they’re something that matters to you it’s better to make that known from the beginning. That way you’ll build wealth in a way that truly works for you.
Your portfolio is unique, and your needs, goals, and desires are unique, as well. With that in mind, you can find the right advisor, learn all you need to know about investing, and move your money toward working for you in the best way possible. There is peace of mind in that, along with a higher level of financial security.