Wealth management resources – Managing Assets and Liabilities through Liability Driven Investing

What will your legacy be? You’re in the process of or have accumulated more wealth than most, and you want to be able to enjoy that legacy. Asset accumulation has been the focus. Now, the overarching challenge is to have the means to meet your needs and maintain the lifestyle and goals you desire for, many years into the future.

Wealth management resources and retirement planning tools:

Any amount of money can be frittered away in a remarkably short period of time. We’ve all heard the amazing stories of people with significant wealth who have disposed of it or lost it in a remarkably short period of time. (E.g. The entrepreneur who sold his company for million dollars, only to find himself in bankruptcy court later on.) Why? One reason is that high levels of net worth can translate into high levels of consumption and a lifestyle that doesn’t fit reality.

Consequently, high net worth individuals like you must confront the basic, critical and sometimes difficult issues related to retirement planning:

1. you and/or your spouse’s life expectancy,

2. assumptions about the future of the economy and inflation

3. determining your lifestyle requirements

4. risk profile

5. determining amounts and timing of any transfers of wealth(children, grandchildren, philanthropy)

6. investment opportunities, ability and resources

Risks and retirement shortfalls

Retirement saving shortfalls run up and down the income and wealth spectrum. In some cases, shortfalls are worst for people with high earnings.

"Student Loans Gone Awry Trap Retirees in Auction Debt," a recent article on Bloomberg.com noted the following story: “A former corporate turnaround executive delayed buying a new home in Dallas because he can't access the $4.85 million he has in student loan auction-rate bonds without selling them at a loss of at least 20 percent. Doolan said he bought the securities over the last two years through UBS AG because they were billed as easy to turn into cash, like money-market funds. ‘I was advised these were the safest’ of all the auction- rate securities, said Doolan, 68, who declined to identify his financial adviser at Zurich-based UBS. ‘These are the worst.’ ...

‘To have worked for 50 years and not be able to access my money is devastating,’ said Doolan, ... I really don't know where to turn.’”

Don’t place your lifestyle and legacy in jeopardy. You must have a realistic retirement plan. Your plan must take into account a variety of factors. Such factors include not only market risks but also your own objectives. Your retirement does not stop with the plan. You must have the discipline to execute the plan and adhere to it through the inevitable ups and downs of market conditions.

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