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Published on: 08/16/2023 • 6 min read

Ways To Level Up Your Wealth Management Strategy

Almost everybody manages their wealth in some way. Many casual investors are already accruing interest in a savings account of some kind, putting money into a sponsored retirement fund, or actively engaging with the market by buying stocks and bonds — but there is always more you can do to level up your wealth management strategy and better prepare yourself for your future.

The benefits of wealth management are self-evident and vast, but wealth management also operates on a continuum. What does this mean? It means that you can technically say you have a wealth management system if you’re stashing 10% of your earnings in a piggy bank and calling it a day, but are you really managing your wealth and maximizing your ability to grow and protect your assets?

Whether you have noticed some of the signs of a bad financial advisor and are considering moving on from your current advisor or you just think you could be getting more out of your money, the fiduciary financial professionals at Avidian Wealth Solutions are here to share a few tips on taking your wealth management to the next level so that you can begin paving a smooth road toward a prosperous future. 

#1: Setting short- and long-term financial goals

First things first, if you don’t know what your financial goals are, it will be impossible for you to actually work toward them. It is important to have everything from attainable goals that can be accomplished along the way to long-term goals that might take years and years to achieve. An example list of short- and long-term goals may look like this:

  • Short: a trip to Greece – $15,000
  • Short: down payment on a house – $80,000
  • Medium: pay off student loans – $200,000
  • Long: retirement – $5,000,000

Conducting a thorough assessment of your current financial situation by tallying assets, liabilities, income, and expenses, will give you a comprehensive goal of where you stand in relation to where you want to be. 

#2: Rebalancing your budget

A well-structured budget should be at the center of ​​any set of wealth management principles. You need to be able to track your income and expenses so that you can identify unnecessary spending and correctly allocate funds toward either savings or reinvestment. 

In order to get an accurate measurement of what you need where you will need a finely-tuned budget to use as a yardstick. With an accurate budget, created with your short- and long-term goals in mind, you will be able to make sound decisions that put you closer to where you want to be. 

#3: Build an emergency fund

Risk is a financial certainty, and as such, having an emergency fund is a non-negotiable aspect of any good wealth management system. For investors with traditional full-time employment, a good benchmark for an emergency fund is 3 – 6 months of salary, but for freelancers or investors that otherwise have a nontraditional stream of income that number should likely be higher. 

Without an emergency fund, you can find yourself more exposed to the dangers associated with risk — this kind of risk aversion can actually end up handcuffing your portfolio. 

#4: Create a diverse investment portfolio

If you’re going to invest — which most people looking into leveling up their wealth management strategy are — you need to do so intelligently. Stock market returns are a great way to combat inflation and grow your wealth at the same time, but if you’re going to be successful, having a diversified and balanced portfolio is an absolute necessity. 

This means having your money invested across things like stocks, bonds, mutual funds, and real estate, or even in alternative investments such as investing in art. You’ve heard the phrase “don’t put all your eggs in one basket,” but may not have heard that some baskets are better than others, or that some baskets turn out to be a total disaster. 

In order to properly balance and diversify a portfolio, you will need to do serious research or work with an investment management professional who can provide market insights and investment expertise. 

#5: Revisit your plan regularly

Revisiting your wealth management system regularly will ensure that you’re always aligning where you are right now with where you want to be. Some aspects of your financial plan that you will want to check on regularly include:

  • Diversification and balance of your portfolio within the current market
  • The reduction, settling, and consolidating of high-interest debt
  • Whether or not your risk tolerance aligns with your overall financial health and age
  • Whether you have jumped tax brackets or otherwise need to adjust your tax plan to reduce tax liability 

Invariably, things change over time. Whether the changes come about because of market volatility or a life event (like having children, marriages, separations, or illnesses), you will likely have to adjust and readjust your strategy as the years go by if you plan on keeping on track. 

#6: Work with a trusted wealth management firm to help minimize taxes and maximize opportunity

A wealth management system goes far beyond just investment management, and reaches far into things like taxes, retirement, and estate planning, to name a few. If you need to expand your wealth management policies to include these other aspects of life, you will likely need to work with an experienced and accomplished wealth management firm. 

Whether you want to start a protective trust, invest in a 529 plan in Texas, or are just concerned about the impact that taxes* are having on your ability to grow your wealth, talking to an expert is likely your best course of action. 

*Continue reading about the Texas capital gains tax

Optimize your financial life with Avidian Wealth Solutions

Although you could always be doing more to level up your wealth management strategy — for your wealth manager, it’s their full-time job. Setting clear goals, creating a well-diversified portfolio, and keeping an eye on those taxes, will set you up to be well-prepared to grow and protect you and your family’s wealth. 

Protecting and growing your assets is something that takes an immense amount of discipline and continuous learning, which is why we recommend working with fiduciary financial professionals. Working with a wealth management firm can ensure that your finances are given the time and attention they deserve, while you have the time to focus on your job, your family, and the rest of your life.  

Avidian Wealth Solutions offers a boutique family office at our physical offices in Houston, Austin, Sugar Land, and The Woodlands, for high-net-worth individuals and those managing multiple income streams looking to optimize their financial lives. 

If you’re ready to level up your wealth management strategy, schedule a conversation with Avidian today. 

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