Putting Wealth to Work for You and Your Heirs

Whether you earned wealth or inherited it, chances are you want to spend some, save some, give some and leave some for your loved ones. If you’re still working, you likely have plans to retire someday, with many goals and life events in between.

How can you put your wealth to work for you throughout your life and beyond? First and foremost, find a trusted, experienced and certified professional to help you put an active plan in place and revisit it annually to adjust for market conditions, evolving goals and unexpected curveballs.

Financial planning isn't just for the wealthy. Everyone needs a plan. And here's a handy checklist and an article about getting organized to prepare for meeting with a financial planner.

Lean into transparency.
Ideally, your advisor is someone with whom you can be fully transparent about your finances and family situation, including any twists and turns throughout the years. While a friend or family member may have the know-how and credentials, consider conflicts of interest. Seek a caring but impartial professional who can help you be objective about your money and navigate the emotions that naturally come up in the process.

Ask about experience and credentials.
Is your advisor well-prepared with the education and experience to assist you with a comprehensive plan? References may also be helpful in this regard. While not essential for every role, designations such as certified financial planner (CFP) or chartered financial consultant (ChFC) show that a professional has gone through a certification process and is bound to additional fiduciary standards.

Identify a quarterback.
Some professionals specialize in one specific area of financial planning, like estate planning or taxes. To ensure all the specialties are working together, like wheels and cogs in a watch, it’s helpful to have a lead advisor who can make sure everything is in sync. They will fine-tune the various levers of your plan throughout your life, employing the right mix and diversity to protect your assets and put them to work to produce the desired results.

Touch on all bases.
The ideal quarterback will be your guide through all the components of wealth management and call on expert resources as needed. Financial planning isn’t just paying down debts, saving and investing. The length and breadth of this list underlines the value of appointing a manager to bring it all together.

• Cash flow, including reserves
• Debt management, including mortgages, loans and lines of credit
• Preparation for adverse events and special needs, including insurance
• Investment management, including education planning and real estate purchases
• Tax strategies and planning
• Business ownership and succession plans
• Maximizing employer and employee benefits, including stock options
• Philanthropy and charitable giving
• Retirement planning, preparation and strategies
• Estate planning and balancing, including trusts, tax implications, timing of asset transfer and providing for minor or special needs children
• Advice on which legal documents you’ll need such as wills, advanced directives, settlements or titling

Don’t be afraid to interview your potential advisor for experience specific to your situation, like special needs dependents, divorces or blended families. It’s important to feel confident that your advisor has “been there, done that” or can call on professionals who have. With the right match, you’ll sleep soundly, knowing your wealth is hard at work for you and those you love.

Kent Anders is a financial advisor based in Pinnacle's Durham office at 280 S. Mangum Street, Suite 140. He can be reached by phone at 984-569-4360 or by email at Kent.Anders@pnfp.com.