Why You Should Consider a Wealth Planner

What is Wealth Planning?

You are probably an expert in your career or field of study, especially if you're a well-paid professional. But you might not be as well-versed in how to manage the money you earn from your hard work.

That's where consulting with a wealth planner can be useful.

Wealth planners, who are experts in the field of money management and financial advice, help people make choices that can help them build, preserve and share their wealth.


Why is Wealth Planning Important?

If, like most people, you live a busy life and are focused on your career, family, friends and personal interests, you may not feel like you have the time to truly delve into wealth management. But that means you could be missing out on important steps you can take to grow your wealth and protect it.

Wealth planning isn't just about increasing your assets. A good wealth planner will approach your finances from many angles. They will review everything from your monthly budgets to your cash flow to your insurance policies, ensuring along the way that your accounts have up-to-date beneficiaries designated and your estate plan is in place.

Wealth planners can help you:

  • Protect your finances.
  • Plan for the future.
  • Transfer your wealth.

Effective wealth planning services are also broader than just investment management. A wealth planner will take a holistic approach to understand your lifestyle, your goals, your family dynamics and your priorities — all of which play important roles in your financial plan. For example, a wealth planner can help you create a plan that addresses your current needs and your future goals in a comprehensive way. They can also advise you on investment strategies, retirement planning, insurance, estate planning and philanthropy.

Wealth Planning Should Be Tailored for You

A wealth planner should provide you with a personalized plan that can provide a path to achieve your financial and lifestyle objectives. An advisor can listen to your dreams of opening another business, funding a philanthropic cause, buying a vacation property or establishing accounts for your children's future. Then, they can help you execute on the financial strategies that can make these dreams possible.


Questions a Wealth Planner Can Answer

When you work with a wealth planner, it's typical to meet quarterly, or at least annually after your initial conversations and decisions. That way, your progress towards your goals, and the goals themselves, can be revisited and reevaluated as your life changes or as markets evolve.

Speaking with your advisor helps identify steps you can take to achieve your financial goals for the future and to manage your money today in a more thoughtful way.

For example, a wealth planner can provide advice about issues such as:

  • How do I plan for college expenses?
  • How do I estimate my financial needs for retirement?
  • What kind of insurance coverage do I need and how much is enough?
  • How do I create and preserve wealth for future generations?
  • How much money should I give to family members?
  • How can I plan to fairly divide my estate among family members?
  • How can I most effectively support causes and charities?
  • Should I buy or sell property now or hold it as an investment?
  • How much of my business income should I invest back into my company?


Do You Need a Wealth Planner?

Unless you're a financial planner yourself, you can probably benefit from the services of a wealth planner. You may not need one if you have relatively simple financial circumstances and are saving for retirement, but the holistic approach they bring can be extremely valuable.

It can also be useful to have an objective, educated opinion about the financial decisions you're making, along with a check on your estate plans and insurance protection.

Common circumstances that influence someone to get help from a financial planner include:

  • An increase in income.
  • Uncertainty over how to manage money.
  • Planning to transfer wealth to family members.
  • Interest in philanthropic giving.
  • Starting a business.
  • Selling a business
  • Getting married or divorced.
  • Inheriting a large sum of money.
  • Securing a large amount of money from an IPO or bonus.

While wealth planners can help anyone, some have special expertise in estate planning, tax management or saving for retirement.


Choosing the Right Wealth Planner

Choosing the right wealth planner requires an understanding of your goals for wealth management and conversations to help you find someone you're personally comfortable consulting about your life plans.

When you interview a prospective wealth planner, you can ask about their areas of expertise and whether they can connect you with other professionals as needed, such as an estate planning attorney and tax expert.

Most importantly, you'll want to develop good rapport with any planner you use, so that person can best help you manage your money and achieve your life goals.

This article is for general information and education only. It is provided as a courtesy to the clients and friends of City National Bank (City National). City National does not warrant that it is accurate or complete. Opinions expressed and estimates or projections given are those of the authors or persons quoted as of the date of the article with no obligation to update or notify of inaccuracy or change. This article may not be reproduced, distributed or further published by any person without the written consent of City National. Please cite source when quoting.

City National, its managed affiliates and subsidiaries, as a matter of policy, do not give tax, accounting, regulatory, or legal advice, and any information provided should not be construed as such. Rules in the areas of law, tax, and accounting are subject to change and open to varying interpretations. Any strategies discussed in this document were not intended to be used, and cannot be used for the purpose of avoiding any tax penalties that may be imposed. You should consult with your other advisors on the tax, accounting and legal implications of actions you may take based on any strategies or information presented taking into account your own particular circumstances. Trust services are offered through City National Bank.