Ahmad Bakhshai, the Associate Vice President of Advanced Wealth Planning at Wellington-Altus Private Wealth, asserts that every family can gain from implementing a financial and estate strategy. He elaborates that the definition of financial success varies significantly from person to person. A thorough wealth management plan clarifies this for each individual and develops a detailed roadmap outlining precise actions to take.
For families with substantial assets, wealth management strategies often prioritize asset protection, tax efficiency, estate organization, and legacy considerations. These families may place less emphasis on financing their children’s education and instead focus on equipping their children to manage family assets responsibly. Bakhshai points out that financial matters are deeply personal, and perceptions of money differ widely.
Furthermore, financial discussions are typically private and can be seen as taboo, even among close family members. When you factor in the intricate details of financial planning combined with life’s unpredictability, everyone holds a profound yet distinct connection with money. Effective risk management is vital when formulating a financial strategy.
Roadmap for family financial planning
Plans are developed considering various factors and premises, making it crucial to acknowledge their boundaries. Certain risks can be effectively managed using financial strategies.
Others are alleviated by creating a safety net of resources and maintaining conservative projections. Additionally, some risks cannot be fully avoided or are economically impractical to mitigate; these are accepted, and necessary adjustments are made as required. Although often misunderstood, trusts can serve as a significant wealth management tool under appropriate conditions.
They facilitate versatile and tailored planning that might otherwise be unattainable. The financial planning process primarily aids in identifying opportunities by calculating a client’s surplus wealth beyond their essential needs. Certain tactics can optimize the tax benefits of charitable donations, providing advantages to both the recipient and the giver, thereby enlarging the overall benefit.
Charitable giving can be enhanced to achieve the same results with fewer resources or amplified using identical assets.
