The Steps All Financial Advisors Should Take to be Successful in any Market
Posted on 10/22/2014
Magii Inc., one of New York's most renowned wealth management firms, specializes in helping businesses and individuals generate and maintain financial prosperity. Financial advisors are responsible for helping clients navigate an environment that is always changing. The company discusses the four essential steps financial advisors should make in regard to wealth management decisions in order to achieve success.
Financial advisors need to educate clients to ensure that they understand that the rate of return is not the ultimate goal. Instead, the goal is to earn the capital to live off of in retirement or to pay for children to go to college. It is also a smart idea to sit down with clients and discuss a sound financial plan that includes checkpoints for determining if they are on track.
Clients need to realize that a source of liquidity to manage downturns is essential for any successful investment plan. When investing in the long term, there will always be short term downturns. Ask clients how much money they want access to for living expenses in such a situation, whether it is several months' or several years' worth. Clients will benefit from the peace of mind that comes with knowing there is a contingency plan in place.
Advisors should utilize financial planning tools that predict a variety of outcomes based on each investor's assets and expected cash flows. This information helps everyone establish a practical long term allocation with a focus on potential successes and failures over time. All plans should be evaluated each year in order to make necessary adjustments based on near term risks so that the plan is successful.
Finally, it is very important to consider the tax ramifications of all wealth management decisions. Tax codes change and a careless decision can cost significant amounts of money in unnecessary taxes. Most advisors make it a point to keep up with tax regulations. If that is not the case, advisors should bring in a tax professional to help with decisions.
Magii Inc. is a wealth management and retirement advisory firm for successful business executives and near retirees who desire financial peace of mind. Magii is located in Long Island, N.Y. and serves clients inNew York, New Jersey and Connecticut.