Consistency through the peaks and valleys
When managing your wealth and investments, one of the most important things you can do is keep calm during times of market volatility. While easier said than done, it is important to turn off the noise from social media, news channels and pundits. Instead, build a financial plan and recognize that investing has a long-term trajectory.
Markets go up and down. No one can control that, but you can control how you plan and what your response will be to the chaos. In general, our best guidance is to stay the course and ride out the turbulence of market events and hiccups. This is where your financial plan comes in handy because it will allow you to stay calm under pressure and know you have a plan in place to achieve the future you dream of.
Lean into the team approach
Your financial team should be in the “peace of mind” business – building your portfolio, managing your assets and structuring your estate to give you confidence in your financial future. Be wary of investment professionals who tout urgent opportunities or infer incredible gains. Instead, relegate these types of offers to the same category as the “noise” and connect with your financial team for assurance.
If you don’t have a financial team yet, start looking for one that provides several key resources that apply to your individual circumstances, such as trust advisory, investment and financial planning. Your team should be a group of professionals you can rely on and trust. Supporting clients with a team of professionals is important in helping them achieve their financial goals. A team can ensure every stone is uncovered and your needs are thought thru diligently.
Building your portfolio
When it’s time to build or adjust your investment portfolio, lean on a team of professionals who can connect your dreams and values with targeted plans and investment strategies. When you have a trusted team managing your portfolio, you can focus on managing your money from a higher level. Plus, it helps take the guess work out of structuring your asset allocation.
Check in regularly with your financial team to ensure your retirement goals are being managed and that other life goals are planned for, such as sending a child to college or caring for aging parents. Whatever your circumstances, your financial team should create an individual plan for you and fine-tune it as you go through life events.
Mind the generation gap
Money can be difficult to discuss with loved ones. Whether it is a parent in poor health or a college student who you need to put on a budget, the emotions can be tricky. Having a financial plan can help you navigate these conversations and give you the tools to discuss the topics at hand. A financial plan helps you understand the discipline you need around your finances. The financial plan gives you a roadmap to make decisions and to allocate your funds. The financial plan is one of your greatest tools.
It is never too late to start your financial planning journey. The first step is putting your plan in place and then enjoying your life with ease.
Interested in learning more about Private Wealth Management? With UMB, you have a guiding partner from financial advising and wealth-building strategies to retirement and legacy preservation plans.
