I’m often asked what the difference is between financial planning and total wealth management. I like to think of it as the difference between a having a game plan alone…or having a game plan and a team to put it in action. At LifePath wealth advisors, we in a sense act like the general manager of a sports team. Our job is to put together the plan or strategy and then make sure that all the appropriate coaches and players are in place, to make it a reality.
Here are some simple formulas to visualize how that all works together. It starts with a plan, and this is a part of Advanced Financial Planning.
Advanced Financial Planning is the process of putting together the roadmap of your financial life. It includes the plan for budgeting, risk management, estate and tax planning and keeping things in perspective with your highest values.
Advanced financial planning = wealth enhancement + wealth transfer + wealth protection + charitable giving
AFP = WE +WT + WP + CG
We then manage the coaches and players that are responsible for keeping all the parts working together. This is the relationship management portion of your financial roadmap.
Relationship management = client relationship management + professional network relationship management
RM = CRM + PNRM
Finally, we are responsible for putting together the portfolios, asset management, and investment products as the investment consultants.
Taken all together, we arrive at the Total Wealth Management Approach.
Wealth management = investment consulting + advanced financial planning + relationship management
TWM = IC + AFP + RM
It is great to have a plan! By putting that plan to work with a team of professionals that are working for you, for the reasons that are most important to you, based on your highest values is the Total Wealth Management approach. This Total Wealth Management approach is helping you put your financial life in order, to work towards your goal of success.