March 16, 2024 – As we bask in the warmth of these first days of spring and renewal, we are taking a break from our economic and financial analysis to spotlight the importance of wealth planning. At Robertson Stephens, we like to say that managing a portfolio without a wealth plan is like driving without a destination. A comprehensive wealth plan is the key to managing risk and liquidity in a portfolio, and every investor should have one.
Here are some important questions we encourage you and your loved ones to ask as part of a comprehensive wealth plan:
- Stating goals: what does your optimal life look like, and how are you using your wealth to live it?
- Budgeting and cash flow: are your spending, savings, and cash flow aligned with your goals?
- Scenario analysis: what other life choices do you want to make sure are available to you?
- Risk audit: are you protected from events that could cause your wealth plan to fail?
- Tax sensitivity: what choices can you make to keep your taxes at a level you’re comfortable with?
- Estate planning: are your loved ones and legacy secure after you pass?
A wealth plan is not static and needs to be updated regularly as our lives and the world around us change. Keeping your plan up to date means it’s available as part of your ongoing decision-making process. It’s never too early or too late to have a financial plan. Managing your wealth with intention is part of living your optimal life, and now is a great time to start planning.
Wishing you all a happy spring. Keep an eye out for our next newsletter in April for an analysis of the economy and markets during the first quarter of 2024.
— AMD