Living Well 60+ November – December 2014

1 2 NOV/DEC 2 0 1 4
Saving Your Pennies for
Someday
Wealth management helps your nest
egg enhance your life
by Doris Settles, Staff Writer
According to Investopedia.
com, the accurate definition of
wealth management is “a strategy
that encompasses all parts of an
individual’s financial life: financial
planning, investment strategy, tax
strategy and legal/estate planning
strategy.”
In other words, the goal is to
use your nest egg to enhance
your life. “A wealth management
advisor should identify seven life
priorities: health, family, home,
work, giving, leisure and finances,”
said Mollie Brennan, vice
president and wealth manager at
Merrill Lynch in Lexington. She
wraps a “goals-based” wealthmanagement
process around
these priorities in a way that
allows you to accomplish things
in your life that mean the most to
you.
“True wealth is about much
more than money. It’s about
achieving life,” said Brennan.
Savvy investors make it a point
to construct intricate structural
changes that ensure their assets
are spread across different sectors.
They calibrate various means
and techniques to multiply their
assets by cashing in on specific
True wealth is about
much more than
money. It’s about
achieving life.”
new investment opportunities,
something that actually
defines wealth management
division.
Here are five basic tips for
managing your wealth at
any age:
• Be Your Own Pension.
We’ve
moved
from defined
benefit
plans,
where you
didn’t have
to think
about
creating an
income for
yourself
past your
working
years, to
creating
your own financial income security.
It’s not about the account
balance; it’s about assets, liabilities
and growth.
• Get Paid What You’re Worth
and Spend Less Than You Make.
Getting paid even $1,000 a year
has a cumulative effect. But no
matter what you’re paid, you’ll
never get ahead if you spend
more than you earn. Often it’s
easier
to spend
less than
to earn
more, so a
little costcutting
in a
number of
areas can
result in big
savings.
• Be
Prepared
to Change.
As the markets change, as your
goals change, as you age, your
asset allocations will also need
to change. In order to stay up
with tax management, asset
management, estate transfer and
investment strategy, talk to a
good wealth manager, not just an
investment planner.
• Make Your Investments Pay.
It is important to have an income
—Mollie Brennan, vice president
and wealth manager at Merrill
Lynch, Lexington
once
you retire while preserving
your principal. Your investment
strategy should create an income
that you can live on.
• Get Your Estate Documents
In Order. Without a will, how
are you going to transfer wealth?
Who’s going to take care of your
kids? Who’s going to make sure
everything is done according
to your wishes? Do you have a
health-care proxy? These are all
wealth management issues, not
investment issues. But they have
huge ramifications for whatever
money you amass during your
lifetime.
To put it simply: The goal of
wealth management is to have
your money outlive you as you
continue to enjoy your life in the
way you want.