BY SUZANNE HAZLETT, MBA, CIMA®, CFP®
Managing your finances consists of much more than investing your savings. Though investments receive the most attention and fanfare, they are only one part of the puzzle. Your financial life is evolving, and every rite of passage brings new challenges and expectations. How can you sleep confidently knowing you have the right pieces in place when making decisions that can alter your future? Start by using a discovery process well-known to wealth management advisors.
The first step of the discovery process is to examine each piece of your financial life as a separate entity.
- Top Priorities— List your priorities for the next 12 to 24 months and determine how much money is needed to accomplish these objectives.
- Liquidity Needs— Establish your annual liquidity needs. Do you have enough cash to cover your expenses? Are you comfortable with a 12-, 24-, or 36-month cash reserve? Be sure to build in a cushion in case the unexpected happens.
- Retirement Income— If you were to live to 100 years old, how much money would you need in retirement to continue comfortably living your lifestyle?
- Risk Management— Risk tolerance is personal. Managing investment risk is an ongoing process that is reevaluated during bull and bear markets.
- Estate Matters— Review your estate plan with legal counsel every five years and confirm that your wealth management team is updated.
- Tax Planning— Your CPA prepares your tax returns but may not have a comprehensive view of your finances. Collaboration among your financial team can capture tax planning opportunities in advance.
- Insurance— Do you have adequate life insurance? Have you purchased long-term care? Is your entire estate covered? As your age and wealth increase, so will your insurance needs.
- Investment strategy— Define the investment mix that meets your criteria and supports all of your aspirations and needs.
Once you have completed the discovery process, the pieces will fall into place. With more birthdays comes wisdom, and with more preparation comes a good night’s sleep.
Suzanne Hazlett, MBA, CIMA®, CFP®, is a Certified Investment Management Analyst® and CERTIFIED FINANCIAL PLANNERTM professional. Investment advisory services are offered through Raymond James Financial Services Advisors, Inc. Securities are offered through Raymond James Financial Services, Inc., member FINRA/SIPC. HAZLETT WEALTH MANAGEMENT, LLC is independent of Raymond James and is not a registered broker/dealer. 675 Sun Valley Road, Suite J1 + J2, Ketchum, Idaho, 83340 208.726.0605 HazlettWealthManagement.com
