Wealth Management for Ordinary Folks

Wealth Management for Ordinary Folks

Kyle Swaim
TB Group LLC


Someone who has enough money for Forbes to write about it probably needs to hire people to keep track of it. That’s why we usually associate wealth management with rich people. On the other hand, Jeff Bezos, who is valued at about $200 billion, could misplace an amount equal to, say, the GDP of Grenada, and not notice it. But ordinary folks, who cannot afford to misplace a million (or even a thousand) may be the people who most need wealth management.


According to Nerdwallet, “Wealth management is the most advanced form of financial advisory services. A wealth advisor typically works with high-net-worth individuals to create a tailored investment strategy to help them manage their assets. Wealth management also generally includes comprehensive financial advice, tax guidance, estate planning and even legal assistance.”


Wealth Management Starts Before You’re Wealthy

While you may not be Jeff Bezos, you still need a tailored investment strategy, comprehensive financial advice, tax guidance, estate planning, etc. And you probably need it more than Jeff Bezos does. Furthermore, you need it right now.


In a previous blog post, I posed the case of putting aside $50 a month toward retirement. If you start when you’re 55, and you put the money into a fund with a 10% annual return, at 65, you will have $9,562.45. But if you start when you’re 25 and put the same money into the same fund, at the age of 65, you’ll have over a quarter million.


And if you don’t put aside anything, you’ll have nothing. The point is your money wants to grow, but it needs your participation. So get involved, and soon.


How Wealth Management Works

An astute wealth advisor may be able to find you investments with a return greater than 10%. A wealth advisor can show you when it’s advantageous to invest in stocks and bonds and how much of each, depending on your age and the market outlook. He or she can advise when to invest in real estate (and real estate investment trusts), commodities, exchange-traded funds, mutual funds, annuities, and certificates of deposit (CDs). Furthermore, a good wealth manager can help you get out of such investments when they’re not helping to meet your goals.


“Your goals” is the operative phrase here. Wealth management doesn’t just mean hiring a wealth advisor and forgetting about it. Bear in mind that this isn’t just about getting richer. It’s about the life you want to live, how you want to live it, and how to recognize things that contribute to it and that detract from it.


Four Steps

Like most financial advisory processes, wealth management has four steps:


    • Identify Goals. Create a mission statement that embodies your purpose, goals, and standards.


    • Create a Plan. What investments will meet your goals most reliably? How much debt are your carrying and when should you pay it off? How can you minimize your tax burden?


    • Implement the Plan. This is where you convert assets, establish savings, make investments, and pay off debts.


    • Review and Adjust. Look back at the plan at least yearly to see you are making progress toward your goals. Do market conditions indicate changes? Make changes to keep on track.


Now, here’s the kicker. It’s very likely you have a family. You need to involve the other members of the family, even across generations. If you’re not all working on the same mission, your chances of success are considerably reduced. You may not find it easy to talk with your kids about money. But look at this way: it’s a great opportunity to discuss concepts like delayed gratification, contributing to the community, and the elements of personal happiness. You may even learn something about the people you are helping to raise.


At TB Group, we believe everybody needs wealth management. We believe it should start early in life and should be as agile as market conditions demand. If you believe the same, click here to set up a meeting with us.


Photo: “Family on a Sunny Beach” by Muhammed Tarik Kahraman via Pexels.

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