- Identify your short- and long-term needs and goals.
- Develop a customized road map to help you grow your wealth, plan your legacy and support your community.
- Enhance your success with well-tested strategies including tax planning, estate planning and asset management.
- Reevaluate your plans across life stages.
What is wealth planning?
Wealth planning is a process; its goal is to develop a road map to help you meet your short- and long-term goals. Part exploration, part strategizing, planning encompasses all aspects of your financial life. By taking a holistic approach to your unique circumstances, wealth planning can help bring you peace of mind and enhance your success.
The benefits of wealth planning
Once you have a holistic view of your current situation and goals, you can get a better understanding of how your financial decisions — big and small — can impact your financial future. The wealth planning process provides many benefits, including:
- Clarity about your goals, values and vision — for you, your business and your family
- Confidence in your financial direction, especially during times of uncertainty and change
- Guidance from an advisor or planner to help you explore major financial decisions
- Perspective for a better long-term view of your financial situation and the range of possibilities
- Measurable results that can help you adjust your course as you move toward your goals
How to get started
Wealth planning starts with gaining clarity about your needs and objectives. To help you think through areas of challenge and opportunity, here are 10 topics the wealth planning process explores.
Considerations |
Issues Addressed |
Cash Flow |
- Can I retire and maintain my current standard of living? |
Investments |
- Does my asset allocation reflect my tolerance for risk and still allow me to achieve my goals? |
Estate Planning |
- How are my assets titled during my life? |
Life/Disability/LTC Insurance |
- Do I need insurance, and if so, how much insurance do I need? |
Property & Casualty Insurance |
- Am I exposed to a substantial loss from theft, destruction, an accident or a lawsuit? |
Education Funding |
- Can I afford to pay for my children’s/grandchildren’s education? |
Wealth Transfer Planning / Charitable Giving |
- How much can I give away without impacting my lifestyle? |
Tax Planning |
- How can I reduce my current and future federal/state income and estate taxes? |
Business Planning |
- How do I handle business succession planning, managing liquidity, establishing a qualified retirement plan, retaining/rewarding key employees, offering employee benefits and providing employee education? |
“One-offs” |
- Should I pay for my new home outright or take out a mortgage? |
What to expect
Once your long- and short-term goals are defined and topics and considerations are reviewed, the holistic planning approach generally includes:
- Establishing or reviewing tax, retirement, legacy and business plans
- Assessing your net worth, insurance and estate plans
- Reviewing your investment allocation, asset protection and cash flow needs
Your wealth planning professional should then deliver a quantitative analysis that includes your net worth and projected net worth, insurance summary, cash flow and estate analysis and projections as well as strategic planning recommendations.
This essential information can help you get a clear view of what the next 5, 10 and 15 years will look like. If you’re anticipating a major transition or considering a large expenditure, that can be addressed as part of your plan as well.
Being intentional about your wealth means having a cohesive planning strategy for your finances — from accumulating it, to growing it, to putting it to work. It takes planning, patience and, in most cases, professional guidance. Establishing a strong relationship with a financial advisor can help you on your path to achieving your most important goals.
The team at First Republic is passionate about adding meaning and value to our clients’ financial lives. Connect with your First Republic advisor to learn more about our wealth and financial planning services.
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