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What Is the First Step in Wealth Management

The first step to managing wealth is seeking the guidance of a financial advisor who is well-versed in all areas of wealth management. And while seeking net worth advice from a solo financial advisor may work well for some, it’s generally best to use a financial advisory firm. You could always do it yourself, but let’s be honest—do you truly have time for that? 

Think of it this way—two heads are better than one. With a financial advisory firm, you can get the input of multiple experts with a variety of backgrounds and areas of expertise. This vastly improves the wealth management process, as you have an entire support system looking out for you rather than a single advisor. Even if you’re a financial whiz yourself, having an expert outsider's opinion can be beneficial for discovering new insights you hadn’t considered before. 

As you begin the process of wealth management after choosing an advisor, your next step is to complete a portfolio audit to understand the full picture of your wealth. Let’s discuss the whole process and the functions of wealth management, so you know exactly how your valuable assets will be handled by a financial advisor. 

What Is the Process of Wealth Management?

In general, there are approximately 4 steps in the financial planning and management process. They involve: 

  • Evaluating your current financial situation
  • Planning a path forward
  • Taking action
  • Consistently monitoring those actions and making adjustments as needed. 

Of course, there are plenty of steps in between and tangential routes to be taken, but that’s a basic overview of the process. Now we’ll examine each part a little closer. 

Step 1: Evaluating Your Situation 

Before any wealth management can begin, a financial advisor will need a run-down of your entire financial situation. This isn’t limited to a simple list of all your accounts and assets. They’ll want to know about your life in general, your business if you have one, your family, your financial and personal goals, and more. Proper financial management will look at more than just numbers—it’s about understanding the human behind the numbers.

To prepare, here are some questions your financial advisor may ask to get started:

  • Are you married, and do you have children?
  • What is your current tax management strategy? 
  • How much do you have in savings?
  • What is the total of your current debt?
  • Do you have a budget in place for your personal life and business?
  • How would you describe your current lifestyle?
  • Are there any big, upcoming costs you are planning for?
  • Where do you see yourself financially in five years? Ten? Twenty? Beyond?
  • At what age would you like to retire? 
  • What does your current estate planning look like? 

Every financial advisor will ask different questions depending on the route these initial conversations take, as each person has a unique financial story. And, of course, you’ll also need to provide thorough documentation to back up the number side of things. 

Step 2: Making a Plan

Once you and your financial advisor are on the same page, the next step is to make a plan. The overall objective of financial planning is to optimize your profitability over time and meet any goals you may have. 

Each plan should be unique and cater to the individual’s personal and business goals. For example, a comprehensive financial plan may include strategies for:

  • Taxes
  • Estate planning
  • Retirement
  • Individual goals
  • Investing
  • Asset protection
  • Risk mitigation
  • Charitable giving 
  • Business plans and successions
  • Real Estate

Step 3: Putting the Plan into Action

For some, this may be the most intimidating step. There will always be an element of fear when managing the wealth you’ve worked so hard for. But without action, there can be no growth. This is yet another reason to have a financial advisory firm, like Delta Wealth Advisors, on your team.

You will hopefully witness positive change quickly regarding your short-term goals. If those fall in line according to your financial plan, that’s an excellent indicator that your financial advisor knows their stuff—and hopefully a promise of more good to come. 

Step 4: Monitoring and Improving

You and your financial advisor can try to plan for every bump in the road or potential crisis. Still, there will always be outliers and surprises that can’t be accounted for. This is why monitoring every aspect of your financial picture is so important. 

As personal, economic, and social factors change over time, you and your financial advisor should regularly communicate to shift your plan accordingly. If you have concerns, don’t ever hesitate to contact your advisor.

At the bare minimum, you should be meeting with your advisor at least once a year. Think of it as a yearly physical, but for your financial health. 

If you’re ready to take the first step in wealth management, consider Delta Wealth Advisors for a comprehensive solution. 

Delta Wealth Advisors: Your Financial Partner

With Delta Wealth Advisors, you get a whole wealth management system supporting you, your family, and your future. Our team is comprised of several specialized in-house professionals, net worth advisors, and CPAs. This allows us to address every angle of your financial picture and any unique needs or goals you bring to the table.  

To start, we will thoroughly discuss the steps in the financial planning process with you, reassuring you that your assets will be handled with care. If you’re ready to take the next step for your financial security, schedule a call with us today by clicking the big green button on our page. We look forward to working with you!