The word “Wealth Management” has many different meanings in finance.
Some call it as money management, some say it asset management or investment management. One should be more interested in what is offered inside and how!
Just selling any financial instruments without knowing your financial goals or looking at the investment amount available or by not taking into consideration the lifestyle or dreams of an individual would be considered as pure push marketing.
If you follow these 3 things that I am mentioning below, wealth management will not be filled with fears anymore but full of bright hopes.
1) Protection: We often overlook the insurance needs, or debt repayments level of urgency over wealth management, investments or luxury needs. Calculated Risk is always better than being rash. Some may argue needs are individualistic, let me tell you why these are key factors to be looked upon.
A hypothetical situation for Instance: Raj is 45 years old now, started earning when he was 25yrs old. Being the only bread earner of the family his focus was totally on the accumulation of wealth. His net worth is around Rs.2.5 cr. supposing by some unavoidable circumstances he meets with an accident and is advised bed rest for the next 18 months with hospitalization expenses around Rs.80-90 lacs.
What would be his net worth now after subtracting his medical bills and family expenses?
He would exactly be somewhere around where we started 15-20 years back.
This has happened simply because of his ignorance towards the aspect of protection. Most of us think such kind of events won’t take place in our life. But can they guarantee it?
2) Saving and achieving your financial goals: Once you have taken care of the protection aspect then you start achieving your financial goals.
Confusion plays a major role at this stage to disguise. Often wealth management and financial goals are mixed up and considered to be the same. Like kids education, their marriage, our retirement planning is mixed up with wealth creation. They are actually our second step towards wealth management. Once we have made provisions for it, only then we get the liberty for wealth creation and accumulation which can be passed on to our next generation.
3) Wealth creation and management: Once I have built my shelter. I can now think of making it my home. This is the right time when you can start thinking about wealth creation and wealth management Services. Where different investment avenues like stocks, bonds, real estate, mutual funds, forex, commodities, etc come into the picture. Here the real value can be created with the help of an expert financial planner to create and manage your wealth.
These are the step that needs to be followed to get your financial freedom. But everything boils down to where are you standing currently in your financial life and what comes on your priority list. Don’t wait for the right time as the right time is right now.
For everything else, Money Anna is there to help!