Full-service tax planning by certified experts

What Is Wealth Preservation?

Share on facebook
Share on twitter
Share on linkedin
Share on reddit
Share on email
Share on print








What Is Wealth Preservation?

Wealth preservation involves planning for the ups and downs of life through the use of a robust financial strategy. When you first began your career, you likely weren’t thinking too much about how you would handle your retirement. You may have looked at putting money in your 401k as a hindrance, not a benefit that you would need in your older age.

However, the sooner you engage in wealth preservation strategies to protect and grow your nest egg, the better. It takes time to save money and earn more through investments and portfolios. Most of us would like the opportunity to retire and experience life without significant financial worry.

What Are Wealth Creation Strategies?

Wealth creation strategies involve creating a portfolio of financial tools that result in savings over time. You can use a variety of tools in your portfolio, depending on your personal goals and risk tolerance.

For example, if you’re just starting on your investing journey, you may have more tolerance for risk and be willing to choose products with the potential for high returns. Typically, these products also come with a high risk — they may lose their value very quickly.

One example of a high-risk investment is cryptocurrency. At the beginning of the COVID-19 pandemic, a bitcoin was worth a little over $5,830. In November 2021, the price soared to over $65,000. While it has now dropped by half, there are thousands of people around the world who benefited from its price jump. Some of them are now millionaires.

For those who have a lower tolerance for risk, investing in blue-chip companies that regularly provide dividends may be a better option. While these stocks may rise and fall, they typically remain in a given range except in the case of serious shocks to the market.

Having a balanced portfolio that is allocated to suit your risk tolerance is often the best strategy for a wealth creation plan. You can have a variety of stocks and bonds that act as a balance against one another to grow your wealth slowly over time.

People who are close to retiring may be less willing to engage in high-risk opportunities since they don’t want to lose what they have managed to save throughout the years. There are a variety of products available that can help future retirees continue to build wealth without taking on a significant amount of risk.

What Are Wealth Preservation Strategies?

Wealth preservation strategies are most appropriate for people who have already accumulated a nest egg and want to ensure that it keeps its value. These strategies involve designing a well-balanced portfolio and adding products that serve to increase its value.

There are also tax planning strategies that can be used to minimize your tax liability, which is especially important in retirement years.

How Can Wealth Preservation Help Me?

The main benefits of wealth creation and wealth preservation strategies are to ensure that you have the money to weather life’s ups and downs. There will be times when money seems scarce, such as when you are raising a family or at the beginning of your career. It’s expensive to raise children, and you may find your paycheck stretched thin.

When people become more settled and their children are grown, they have more money to put toward their retirement and personal savings goals. Working with a wealth preservation specialist can help prevent common investing mistakes and reduce your risk as you work toward your financial goals.

If you’re not familiar with investing and don’t know where to start, working with a professional advisor is often the best route to take. Otherwise, you can end up spinning your wheels and dabbling in investments that don’t meet your goals. A financial advisor can advise you of your various options and help you make appropriate decisions.

Are You Ready to Get Started with Your Wealth Protection Strategy?

If you want to be prepared financially for your children’s college expenses, retirement, or simply purchasing a home, you need the help of a qualified investment advisor. At The Tax Planning Pros, we offer wealth creation and wealth protection strategies that can help you realize your goals. To get started, contact us for a free consultation today.

Explore More

What Is Wealth Preservation?

What Is Wealth Preservation? Wealth preservation involves planning for the ups and downs of life through the use of a robust financial strategy. When you

Read More »

Keep in Touch

Do You Want To Boost Your Business?