ADVANCED PLANNING

With the accumulation of wealth, management of household finances can take on complexity similar to that of running a small business. Advanced financial planning involves strategies that can vary widely from household to household. Representative topics include options/equity planning, tax mitigation, trusts/estates, retirement planning, and charitable giving. Business leaders anticipating binary events (such as potential liquidity events) also need to plan across multiple scenarios of the future. It is here where a sophisticated advisor, with the pattern recognition of having worked with other households in similar situations, can inform one’s unique strategy.

For successful entrepreneurs and business leaders who have worked in fields such as private equity, management consulting, and investment banking, it can be a rarity to find a wealth advisor with similar experience. Such a relationship can be of particular benefit for those looking for a higher level of insight, and who are looking to manage their personal wealth with the same type of rigor that they apply in their careers.

Working with someone you connect with, whose judgement and integrity you trust, is critical in a field such as financial planning. Having accepted that investors cannot consistently beat the market without adjusting the amount of risk that they take, one can still stand apart from the crowd through effective financial planning. With a long-term investment strategy that eschews constant reaction to the markets, one also frees up valuable mind share for financial planning.

An advisor should be a great listener and understand your personal perspective and evolving situation thoroughly. The advisor also needs to fill a coaching role to ensure that you are executing your plan successfully.