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Identify Unique Goals and Strategies to Optimize Transfer of Wealth

Financial advisors must identify unique strategies and goals for their clients' wealth and the wealth of their heirs in order to drive their success.

Clients want to utilize their wealth to meet unique goals that they have. Charitable gifting, leaving assets to family members or even having enough for one last hurrah with friends requires a unique investment strategy for unique goals.

Financial professionals should not only identify these goals but craft a corresponding strategy. A high-net worth person in their 60’s who wants to gift assets to their family will have very different needs than a younger philanthropist who wants to donate assets the community after they retire. These clients will have two unique strategies. 

The older investor might want to invest in a more conservative investment allocation to preserve the assets they are passing on.

The investor might also want to look at other vehicles to help shelter assets against taxation, such as a trust or even life insurance. The younger investor, meanwhile, may benefit from a trust but may want a more aggressive investment allocation or even access to alternative investments to drive returns.

Financial professionals should explore products and services that facilitate the wealth transfer process from both the investment management perspective and financial planning perspective. Investment management revolves around the ongoing portfolio management needed to achieve a predefined goal, while financial planning revolves around the initial definition of goals and the resources/techniques needed to achieve them.

Professionals also stand to benefit from addressing wealth transfer for one simple yet powerful reason: Exploring these concepts with a client may also lead to addressing these concepts with their heirs. Advisors who do not include the next generation in the conversation stand to lose that client since if they are not having conversations with them, it might be another advisor who is conversing with that client later on.

Did You Know....
4Thought helps advisers craft strategies designed to preserve wealth across generations, attuned for the clients’ needs. We seek to ensure that assets are available for every goal and every generation.

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