Strategic Wealth Plan - LIFE Map | The Private Bank
A wealth strategy is a step-by-step action plan to provide clear direction to achieve your ProVision wealth strategies are highly individualized and totally practical. .. To expedite the benefits of a new strategy, many of our clients ask us to We will coordinate with your team members to get your strategy implemented as. The advisors at SFP Wealth Strategies work with and benefit from the talent and support of Strategic Financial Partners. We will guide you through a team- based, process-driven approach to financial planning that can We develop a strategy to address one issue, often implemented through the Relationship Based. customers profitably and their strategy for differentiating themselves in a For firms looking to tap the existing wealth management client base, this level of service competitive advantage in attractive customer segments. Successful advisors develop a relationship with clients by demonstrat- .. (CRM) implementation to.
Customer Relationship Marketing maximizes value and drives profitability With proper collaboration, those interfacing with customers are empowered to use the resources of the organization to solve problems, answer questions and provide positive buying experiences for consumers. In addition, satisfied customers will stay longer so profitability will be enhanced over time. Retaining customers improves marketing efficiency by reducing churn.
Building a Relationship Marketing Strategy A relationship marketing strategy begins with insights gleaned from data. Insights reveal opportunities and challenges. Goals and objectives are developed as a first step in creating a marketing strategy that will address a specific opportunity or challenge. Appropriate audience criteria is used to select certain consumers, then messaging, offers and other elements are assembled to achieve the established goals and objectives. This is particularly important when the consumer is experiencing challenges with the product or service.
Quickly resolving issues builds trust and it can improve customer satisfaction. By paying careful attention to positive and negative trends, organizations can use this feedback to make appropriate adjustments to product or service offerings, ensuring customer satisfaction.
Customer Profitability — Relevant communications and offers motivate consumers to use the full complement of product and service offerings. Because consumers understand the benefits of the offerings, they are typically more compliant and they remain customers for longer periods of time.
Customer Advocates — Consumers who are pleased and enjoy a consistent experience increasingly share this information with each other. Increasingly consumers are turning to each other for suggestions and recommendations. Make it easy for your customers to share their experience, but first make sure they have a consistently good experience.
Delegate, Empower, and Respect Independence Members of a healthy family group learn how to row together and row separately. I have already touched on some of the advantages of working together, but it is also important to respect the individual ambitions and values of each family member and, over generations, each family unit.
The challenge for the Wealth Strategist and for other family members is to balance the two and reinforce the strengths of each. This is an excellent way to encourage the personal growth of young adults, who, if supported by their family in their personal interests or business pursuits, learn to embrace responsibility for their life choices and to develop a sturdy sense of self-confidence.
Importantly, support strategies should leave room for failure: It is through failure that a person develops resilience and often learns the most. Independence, resolve, periods of trial, and ultimate success within the youngest generation can be of tremendous benefit to the family later on, especially if these individuals take on responsible positions of leadership within the family.
It is also important for family members to understand and experience the benefits of working together to reinforce the connection with the family core.
The person s who serves as Wealth Strategist must create and make the case for encouraging other family members to willingly work together. Ideally, especially in families that manage wealth across generations, all family members can be involved to one degree or another, including in-laws. Sometimes involvement means a day-to-day commitment to the family business. But this is clearly not the correct recipe for every family member.
For many, the responsibility is to remain informed, respond promptly to administrative requirements, and to participate constructively in family discussions and meetings. As the arbiter and facilitator of family discussions about wealth, the Wealth Strategist must listen, broker, offer incentives, and encourage family members to collaborate on common goals. Doing so creates highly productive client-advisor relationships because your professional team is now empowered to act on your behalf!
Diversify but Focus Diversification and focus combine the best of both worlds. With diversification you achieve risk mitigation, and with focus comes the laser intensity that most people need to succeed in life. Diversifying your investments is fundamental to prudent risk control.Tony Robbins Audiobook : GЕТ Тhe Edge with Anthony Robbins (Motivation, Money, Relationships)
Interestingly, wealth is created most quickly and most often through success in a single business. If you can do it, birthright, marriage, and adoption are even quicker!
However, wealth is also most quickly lost by concentrating it on only one or a few investments. The principle of diversification applies in other ways as well. Most individuals have both taxable and tax-deferred retirement and deferred compensation plans investment portfolios. Some have life insurance savings plans that are tax exempt to the beneficiary. A few people also control corporations. Each of these entity types receives different tax treatment.
You can also think about diversification in terms of your human resources strategy. If possible, have a backup plan in place for all your key people, including yourself.
Eight Principles of Strategic Wealth Management
Although investment and asset diversification are prudent, my experience is that my family and I reap the most benefits — success, personal satisfaction, competitive advantage, and in business, outsized financial returns — when we struggle over specific challenges with a great deal of focused energy.
Achieving competitive advantage in the deployment of capital — a critical component to growing diversified wealth — is very difficult to achieve. Focus and experience also improve judgment. While you should make important decisions based on fact, there are also times when you have to go with your gut when you are adept at wealth management and go with your values because you rarely have all the facts you need at your disposal. To this end, Wealth Strategists should always be on the lookout for ways to stimulate and pursue their own focused interests and those of their children so that they learn to trust their gut when they need to rely on it.
Err on the Side of Simplicity When Possible Inevitably, advisors will present you with many fancy options for doing great things with your money. Some of these are terrific ideas, but I recommend to most people that they stick to simple wealth management strategies and products.
Before choosing complex solutions to wealth management issues, evaluate the simple ones. Simple solutions such as indexing may offer you most of the benefits of more complicated plans, a higher degree of certainty, easier implementation, and greater flexibility in the face of changing personal or financial circumstances.
If you evaluate the simple solutions first, at the very least you can quantify the relative benefit and costs associated with more complex approaches. In my professional opinion, you should view complex wealth management strategies with a skeptical eye. These schemes, often highly remunerative for advisors at the time of sale, can subject clients to long-term risks.
For example, recommendations that solve short-term problems or show lots of promise may not pan out as expected months or years in the future. Execution or assumptions may be faulty. Or solutions may work well under certain conditions, but unravel if market conditions change unexpectedly.
The more complex the wealth management strategy, the more variables you have to worry about managing, and the more difficult it is to reverse course.
Eight Principles of Strategic Wealth Management - [email protected]
Instead, question why an advisor is proposing a particular course of action and why it is sufficiently better than simpler alternatives. Because many complex strategies are quite remunerative to advisors, be sure you understand how such complex strategies will also be remunerative to you! Some families actively manage complexity to gain competitive advantage, which I will discuss in greater depth in later chapters.
I suggest a corollary in these instances: Err on the side of transparency. Because wealth management discussions are likely to be both complex and lengthy, not every family member will need or want to be involved in every conversation.
Above all, avoid secrecy!
Keeping secrets from responsible family members, advisors, or the government has a propensity to backfire. I did so in an attempt to avoid disagreements that I thought might ensue among family members. Inevitably, the secret leaked, and the problems ended up being much bigger than if I had just faced up to them in the first place. Secrecy is just one more variable you need to manage, and it flies in the face of healthy family culture!
Develop Future Family Leaders with Strong Wealth Management Skills As a prerequisite to successfully building wealth over multiple generations, the Wealth Strategist must develop future family leaders.
Every family has a potential reservoir of talent, energy, contacts, and business experience that can be tapped into to lay the groundwork for the future. For example, the Wealth Strategist can nurture individuals within the family who demonstrate specific interests and aptitudes, giving them progressively more responsible positions of informal leadership for wealth building activities.
The Wealth Strategist should also expose such individuals to substantive family discussions of wealth-building goals and strategies, as well as to the corrosive power and hollow rewards of excessive spending. Doing so helps to instill values of accountability and financial stewardship in young family members, instead of attitudes of arrogance or entitlement.