Building significant wealth gives your family more choices about how you live, spend, and plan for the future. But it can also raise an important question: How much can you comfortably enjoy today without compromising what you want your wealth to support in the years ahead?
Finding that balance looks different for every family. These wealth tips can help you think through your current lifestyle, long-term priorities, and some of the financial decisions that connect the two.
Luxury and Longevity Defined
The concept of luxury manifests in many forms. Opulent homes, international travel, exclusive clubs, and high-value possessions are just a few of the trappings wealthy families earn through hard work.
But enjoying luxury in the present needs a counterbalance: a long-term financial strategy. It’s more than having enough for today. It involves making your wealth sustainable for the future. As retirement draws near, having that plan in place is essential.
One of the key wealth tips for affluent families is to establish that structure. This is particularly crucial when families must steer through difficult times and economic uncertainty that can arise at any moment.
Challenges for Wealthy Families
Affluent individuals face unique challenges that dictate special consideration. A great number of our clients earn high and stable incomes that give them special opportunities for building wealth. On top of regular salaries, those opportunities might include stock options and lucrative compensation packages.
The challenge lies in managing this wealth. A mindful strategy that includes tax management, legacy planning, retirement, and wealth transfer is a powerful tool. It can help to keep you and your family from the pitfalls of overconsumption by maintaining sustainable wealth.
Aligning your assets and earnings with future, long-term goals is one of the most effective wealth tips to follow.
Wealth Tips for Striking a Balance
While you have every right to enjoy indulgences from time to time, it’s important to keep those luxuries in line with plans for retirement and beyond. Here are some meaningful wealth tips.
Set Clear Goals
Put your financial priorities above all else. Make thoughtfully considered and attainable goals that correspond to your family’s long-term needs. These can include funding education, estate and legacy plans, and building retirement capital.
Make Appreciating Investments
Assets like real estate, fine art, and value stocks tend to gain in value over the long haul. This sets them apart from temporary extravagances. Appreciable assets can provide consistent, passive revenue while building for the future.
Review Your Portfolio Often
No matter how much you earn, keeping tabs on your investments is vital. As you move toward the future, review your portfolio and make adjustments from time to time. Strive to diversify your holdings to mitigate risk. Your needs should change as you go through life stages, so adapt your portfolio accordingly.
Actionable Steps to Take Now
As you get closer to retirement, you can take a few actions that can preserve your financial balance while enjoying the present.
Max Out Retirement Fund Contributions
Contribute to your 401(k), pension plans, and brokerage accounts to their maximum annual limits (if applicable). This is particularly important if your employer matches your contributions.
Set a Luxury Spending Plan
While you may have more financial freedom than others, it’s still important to keep an eye on how much you spend on luxury items. Earmark a percentage of your annual income for those as you continue saving and investing.
Develop an Estate Plan
Include wills, trusts, and wealth transfer strategies in a well-rounded estate plan. Start building your legacy in the present by allocating your wealth to your beneficiaries’ futures.
Start Applying These Wealth Tips Today
Balancing the lifestyle you enjoy today with the wealth you want to preserve for the future can bring some important decisions. At Sentinel Wealth Partners, we provide wealth tips and financial guidance tailored to the priorities of affluent individuals and families.
If you’d like to explore how your current financial strategy supports both your lifestyle and long-term goals, reach out to us today by calling our office at 703-832-0164, sending an email to brian@sentinelwealthpartners.com, or using our online calendar.
About Brian
Brian Bloxom, CRPC®, ChFEBC℠, is the founder of Sentinel Wealth Partners and a veteran advisor with over 30 years of experience specializing in complex retirement plans and federal benefits. He is dedicated to relieving client anxiety by providing highly accessible, customized guidance that helps retirees and pre-retirees transition confidently into their next chapter. Outside of his practice, Brian serves as the President of his local Salvation Army Advisory Council and enjoys golfing and coaching youth sports.
Securities offered through Registered Representatives of Cambridge Investment Research, Inc., a broker-dealer, member FINRA/SIPC. Advisory services offered through Cambridge Investment Research Advisors, Inc., a Registered Investment Adviser. Sentinel Wealth Partners and Cambridge are not affiliated. Sentinel Wealth Partners is not engaged in the securities business. Cambridge does not offer tax or legal advice.