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Importance of Wealth Management

Your entire career has been dedicated to delivering the best care for your patients, being a great manager and team member, and providing for your loved ones. You are now approaching a period in your life when you can start dreaming of life beyond your career. Retirement can be the most rewarding time of your life, but there are several steps that need to be taken to get there. Below are a few of the common questions we hear from people when they are considering wealth management after their career.

How soon can you retire?

This always seems to be the million-dollar question. But, the answer depends on a few key things. How close are you to reaching your retirement savings goal and will it maintain your quality of life? If reaching that benchmark still seems far away, you will most likely be working for several more years. But, if you are quickly approaching that golden number, you then need to ask yourself, how soon do you want to retire? And, that is only something you can answer. Once those questions have been answered, you should consult with a financial planning expert to create a plan of action to make your retirement a reality based on your personal timeline.

Will your current wealth carry you through a full life?

The answer to this question also depends on a few additional questions. First, how much are you spending now? And, is this a lifestyle you want to maintain during your golden years? Based on the answer to those questions, do some calculations and figure out how much money you’re actually spending right now; not how much you think you are, how much you actually are. This number can then be projected into the future as money-needed during retirement. Many people commonly think their spending will decrease during retirement, but often that isn’t the case, your money is just spent in different ways.

Do you have that much wealth set aside right now? If not, start working with a wealth manager to put that plan into action. And, if you do have the right amount, create a plan to ensure that money is still available when it is time to retire.

How do you maintain your wealth?

Once you have reached a certain level of financial success in your career, it is often important to focus on not losing that money instead of making more of it. You need to ensure the money you have earned will be there for you and your family long into retirement. This means saving and investing in diverse and secure wealth-growing opportunities. It can be tempting to take on a bit more risk and invest in something that would produce more returns, but the closer you get to retirement, the more dangerous that can be for you and your family.

Do you need trust services?

Having a trust may be important you, regardless of what level of wealth you have accrued. If you have any assets you want to pass to a loved one or charitable organization, you need to set up a wealth transfer plan. This plan can be lengthy and detail-oriented process, so be sure to start planning as soon as possible. 

One option is to establish a lifetime giving program. If you establish a gift giving program, it can help reduce the size of your remaining estate that is taxable, making the financial burden on your family easier to bear. Otherwise, your wealth will often be heavily taxed by the IRS. So, while you’re still alive, consider if you would like to begin giving to a loved one or charitable organization to ensure these parties get the maximum value of the gift you want to share.

As you can see, wealth management can play an integral role in retiring successfully. With so many different factors to consider, it is important to ensure you have a trusted wealth management team to help you along the way. For help setting up this plan of action, contact the Business Banking team at Bankers Trust.



0118-03 | Dental Program | Bankers Trust