Wealth Management: Putting it All Together

It seems only natural that an abundance of wealth would lead to a feeling of financial security and independence. Conversely, insufficient wealth can be a source of concern and stress. In particular, if a lack of wealth is impacting your mid and late-stage retirement years. 

It has been our experience that the way you think about money can have a major impact on your financial decision-making – for example how you invest your assets in volatile securities markets. Your thought patterns and emotions about money can also impact how you make, save, and spend money. 

So, the first step to holistic wealth management is documenting your relationship with money and any thought patterns or emotions that may be impacting your financial decision-making.

Changing how you think about money can help you improve your results. Sometimes, the only thing preventing you from saving more money is the discipline it takes to make saving a bigger priority in your life. 

If you don’t believe you’re capable of saving more money than you already do, then it is less likely you will do what it takes to save more - increase income, cut expenses, invest smarter, and take measured risks. 

Read our blog posts to learn more about relationships with money:

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Similar to how you think about money, how you feel about money can also impact how you approach your finances. There are two primary emotions that drive the investment of money. One is greed - how much money I will make if I am right. The other is fear - how much money I will lose if I am wrong. Realities are usually somewhere in between.

Your feelings about money can stem from any number of past life experiences, such as watching how your parents treated money or the experiences of friends and family. Often, these experiences trigger fear or anxiety where money is concerned. By understanding how you feel about money and where those feelings come from, you can increase your financial confidence.

Try asking yourself these five questions:

• How do the experiences of others impact your decisions?
• How do you feel about making decisions that impact risk?
• How comfortable are you in making purchase decisions, both big and small?
• How does it feel to be in debt that is in addition to the mortgage on your home?
• How much time do you spend planning for your financial future?

Your feelings toward money are neither right nor wrong; they are just part of who you are. The important thing is to be aware of them and recognize when those feelings may be causing you to make the right decisions. Remember that money is just a tool for helping you achieve your financial goals. You use it to build the type of life you want to live. Creating that life should be your real goal, and not just numbers in savings account.

Read our blog post: How Do You Really Feel About Money? Let’s Find Out

You already know life is full of uncertainties, as the COVID-19 pandemic so poignantly reminded us. In general, they are unexpected and beyond our control 

When it comes to wealth management, life’s uncertainties can come in many forms, from our health and longevity to the performance of the financial markets and the economy. Luckily, there are wealth management strategies you can use to prepare for each of these uncertainties.

To prepare for potential health concerns, it’s important to have adequate insurance coverage. This includes both health insurance and disability income insurance. And, as you near retirement, you should be building a reliable healthcare strategy for when you are no longer covered by an employer plan. 

Healthcare costs are one of the biggest expenses that many retirees face later in life. And these costs are rising faster than the rate of inflation. Being prepared can go a long way to making sure these costs don’t derail what is otherwise a comfortable retirement: Healthcare, Assisted Living, Skilled Nursing, Memory Care. 

Rising longevity can be a source of concern for many couples who are in their mid-retirement years. One of their most common concerns is about running out of money later in life. This concern is increasing as one or both spouses live 30 or more years after they retire.

To reduce the chances of outliving your money, make sure to maintain a balance of risk and reward when you invest for retirement. Perhaps your parents or grandparents could roll CDs, but that is no longer feasible unless you have so much money there is no risk of a shortfall.

Investing in a balanced, diversified portfolio (stocks/bonds/cash equivalents) can also help minimize the risks of market and economic uncertainty. It’s also important to recognize that volatility is natural both in the securities markets and the global economy. The markets go up and down with economic conditions that may be difficult to predict. Diversification in multiple asset classes is one way to predict your principal.

These uncertainties highlight the importance of having a financial plan for a variety of market conditions. People with a clear plan are more likely to achieve their goals than people who do not have a plan that covers the unexpected. The key is a customized financial plan that works in a variety of market conditions. 

Read our blog posts:

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A truly personalized financial plan is one that is built around your individual circumstances, concerns, and goals. Everyone’s lifestyles and dreams can be different, so every financial plan can be different. 

Some financial strategies use one-size-fits-all, cookie-cutter plans that are produced by software. You answer a few questions and a few seconds later you have a financial plan that has your name on it. This does not constitute a custom financial or retirement plan.

At PAX Financial Group, we treat every client as unique. There are no cookie-cutter plans. We spend whatever time it takes to learn more about our clients and develop custom solutions. This is based on a financial planning process that starts with an examination of your current situation in relation to where you want to be down the road. Next, is gaining an understanding of your emotional relationship with your money. Only then do we have enough information to develop a custom financial or retirement plan. Part of the plan includes a comprehensive budget that incorporates current and future income and expenses, including debt and tax consequences.

At PAX Financial Group, our customized plans are very specific to our clients. For example, each plan has a detailed strategy for life’s events - for example when children leave the nest and head off to college. Our comprehensive planning includes building a legacy for future generations. Everything in the plan is tailored to the needs of individual clients - no one-size-fits-all solutions.

Read our blog posts:

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Once you have a plan in place, the journey is just starting. It’s important to track and review your progress along your financial roadmap regularly. As life events happen – such as the birth of a child or a job change, or even just a new hobby or vision for your future – it’s important to revisit your plan and make adjustments as necessary. 

At PAX we tell you what is happening and why.

You should think of your plan as a roadmap. You have a clearly defined destination and the map helps you get there. These mile markers – which you need for any financial goal – will help determine if you’re still on track. If you find you are not reaching mile markers it may be time for a course correction.

Read our blog posts:

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A financial plan should never be a static document. Quite the opposite, your financial plan should be nimble and adaptable. At PAX Financial Group, you can change your plan at any time, and in fact, should adjust it whenever your circumstances and goals change.

Think of your plan as your ideal path based on all currently available information. If new information arises that impacts your plan, you can correct your course. Likewise, if there is a detour based on a change in circumstances, for example, a job change that increases your income, then you also need to update your plan.

Even if nothing changes in your current situation, you may require course corrections based on road conditions - for example, you are not on track to achieve your goals. If you miss your savings mile marker, for instance, you can course correct by adjusting your savings or investment strategy. 

What you should not do is make emotional course corrections in response to financial events that have already happened. By then it is too late. A better approach is to make sure your financial plan is designed to account for anything that life and the securities markets can throw at you. If you have questions about your plan, talk to your financial advisor.

Read our blog post:

How to Stay Calm During the Pandemic and Focused on Your San Antonio Retirement

Finding clarity, confidence, and control in your financial life is empowering, but it can also be challenging. Financial planning is complicated and constantly changing - nothing is static. This is where an experienced financial advisor can help.

A financial advisor who specializes in wealth management can be a resource and guide throughout your financial life. Wealth managers should take a holistic view of your financial life by combining all of the financial information they need into one package. For example, by working with a wealth advisor at PAX Financial Group, you’ll get investment guidance, retirement planning, estate planning and other services that help you get your financial life on track and keep it there.

Read our blog post:

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Get a conversation started!

If you’re ready to get help with your financial life and put a retirement comprehensive plan in place, contact us to see how PAX Financial Group can help.