home  |  about us  |  careers  |  contact us  |  login  |  rate tracker

Educational Tidbit

Wealth Management Process
It seems difficult these days to avoid hearing about financial matters. The sources of information have exploded as newspapers, magazines, internet, and financial news outlets such as CNBC, newsletters from legal and financial professionals, seminars, and even friends and family provide an almost countless source of information.

Over the years various phrases have been associated with financial matters including financial planning, estate planning, tax planning and many more. The most recent phraseology focuses on the term “wealth management”. There are four phases of the wealth management process – accumulation, utilization, preservation, and transfer. Wealth is a relative term, but the process is not solely for the wealthy. We all accumulate wealth. Once we have some measure of wealth we desire to protect it and utilize it. Since “we can’t take it with us”, we leave it to family, friends or charity.

Accumulating wealth is a simple concept – generate income in excess of expenses. Wealth accumulation flows from work and savings and sometimes the receipt of wealth from others.

Utilization of wealth is sometimes fun (taking vacations or buying “toys”) and sometimes a requirement (living expenses, education, medical, etc.).

Preserving wealth is taking steps to protect your wealth against taxes, inflation, market fluctuations, and excess consumption. Concepts such as diversification, asset allocation, asset location and risk management are essential in this segment of the process.

Providing for the ultimate transfer of wealth at death is understandably uncomfortable for some. The inner gratification we feel from receiving a raise or bonus, a gain from an investment, reaching retirement, giving to a charity or family members is not necessarily present when one has a Will or trust drafted that takes effect at death. Still, the transfer of wealth is vitally important (“Failing to plan is planning to fail.”)

In the coming months we will examine various topics in the financial world and how they relate to the wealth management concept. There is great potential for tax law revisions, and changes in retirement plan and investment rules. Market volatility is likely to continue. All of these will most likely impact your wealth management strategy in some fashion.

The key to a successful wealth management process is planning. Please feel free to contact us to see how the Williamsville State Bank and Trust can assist.

3341 Old Jacksonville Road
480 S Crossing Drive
512 W Main Street
The Chamber Sherman Area Chamber of Commerce Sherman Area Chamber of Commerce Member FDIC Equal Housing Lender