Wealth management services are designed to help ease the stress of dealing with your day-to-day financials while also setting a customized plan in place to ensure your financial future. According to Dwight Dykstra, wealth manager and financial advisor, one of the most popular benefits of wealth management is the ability to actively work towards your retirement goals.
When you think about your financial future, you most likely picture retirement, says Dwight Dykstra. But it’s important to think beyond what you’ll be doing with your free time and consider how you’re going to fund those dreams. Most people retire around age 65, which means that you have twenty to thirty years with no income coming in.
Proper retirement planning doesn’t happen overnight, says Dwight Dykstra. In fact, the earlier you start planning the better. On the average American salary of $45,000 takes decades to accumulate the needed funds to support you in retirement.
Wealth management focuses on helping you make wise investments for your budget, your risk tolerance, your age, and your retirement goals. Following financial plans set into place under the advisement of your wealth manager can help you save the money you need to invest in your retirement funds. Your wealth manager will also help you choose the correct asset allocations and help you manage your portfolio so you can focus on other things.
The other major benefit of utilizing wealth management services is a customized investment plan. There are hundreds of possibilities for investment–money market funds, the stock market, EFTs, REITs, real estate, commercial projects, commodities–the list goes on. A seasoned wealth advisor will be able to help you build a balanced and diversified portfolio of investments based on your retirement goals and your risk tolerance.
Don’t try to time the market or pick up day trading, advises Dwight Dykstra. Instead, make slow and steady investments in a diversified portfolio to protect yourself from major fluctuations in any one market. When you work to grow your wealth over the long term rather than the short term, you’re able to leave your money in the market for longer. This strategy reduces your risk and maximizes your returns.
Your investing plan is an integral part of your retirement plan. Likewise, your retirement goals will inform your investing decisions along the way. A good wealth manager will help you develop a comprehensive financial plan that protects your assets and maximizes your returns so you can enjoy your retirement and a sound financial future.