Wealth Management is the science of solving/enhancing a financial situation. An individual may manage their wealth through a number of Investment strategies.
Fundamentals of Wealth Management & Wealth Management Process
A key factor in determining an effective wealth management strategy is how the wealth is accumulated. There are basically two different ways people accumulate wealth: • Wealth through moderate accumulation; and • Wealth through momentous event.
Having a realistic financial framework can help you better seize financial opportunities as they arise.
• Before creating a wealth plan, take a snapshot of where you are today financially. • Net worth is measured as the excess of all your assets over all your liabilities. i.e. • Total Asset – Liabilities = Net Worth
• When developing a plan, balance financially prudent strategies with emotionally acceptable thresholds. • Provide for flexibility, as personal and financial situations often change with major and minor life events such as death, illness or marriage.
• A successful investment program must address both safety and performance concerns compromising neither. • It is an ongoing process, thus you must monitor the plan and adjust it as necessary to ensure that you are moving in the right direction.
• Ownership of broadly diversified portfolio – investments in multiple asset classes such as equity, fixed income, ETPs and derivatives • Ownership of high-quality equities diversified across Sectors, Blue Chip/Growth companies and Geography • Investment in ETFs for smaller investment amounts
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