Are you managing your wealth efficiently? While you may be focused on the details, it is essential to step back and take a broader view of your financial situation. In this article, we have put together a wealth management checklist to help you assess whether you are missing the bigger picture.
Independent Advisor: Do you have an independent financial advisor on your side whose only source of income is a fixed annual fee from you? This fee-only advisor will work solely in your best interest, not receiving commissions from any financial product or service provider.
Investment Plan: Do you have a well-defined investment plan or investment policy statement that serves as the go-to document before making any investment decisions? This plan helps you stay on track, avoid impulsive decisions and achieve your financial goals.
Investment Tracking: Do you know how much money you have invested and what is its present worth? Do you have any idea of what it would have been worth if you had invested in benchmark indices? Keeping track of your investment performance will help you evaluate the effectiveness of your investment strategy.
Commission Charges: Do you know which schemes you are still paying commissions to the wealth manager who sold you the scheme? Understanding the fees and charges associated with your investments is crucial to avoid unnecessary costs and maximize returns.
Financial Reporting: Do you have someone regularly writing your books of accounts, highlighting any loss-harvesting opportunities, and paying advance taxes on time? Proper financial reporting and tax planning can help you reduce your tax liability and optimize your investment returns.
Investment Execution: Do you have a seamless execution set-up that allows you to buy/sell investment products with minimum fuss and under direct code? Efficient execution is critical to ensure that you capitalize on market opportunities without wasting time or incurring unnecessary costs.
Estate Planning: Do you have a clear estate plan that ensures smooth succession after you and protects you from potential liabilities? The estate plan should also protect you and your children, especially if they are in the US/UK, from estate taxes.
Asset Register: Do you have an asset register that lists down all the minute details of each of your investments, which your family also has access to? Having a complete and accurate asset register will help you manage your investments and provide transparency to your heirs.
If your answers to the above questions are not a convincing YES, then you might be missing the bigger picture. Corrective steps are required to optimize your wealth management strategy and secure your financial future. Use this wealth management checklist to assess your financial situation and take action where necessary.
