Wealth Management is a lot more than just managing your money and investments. It has to do with every facet of a person’s financial life. It deals with his or her finances and investments, legal or estate planning, accounting, taxes and retirement planning. Ensuring you have a nice nest egg tucked away to take care of your retirement is an integral part of managing your wealth wisely.
When it comes to ensuring your future is provided for, there are some strategies for Wealth Management that anyone can follow.
Assess, Plan and Start Early
It is never too early to start managing your wealth. Take a good hard look at your financial condition – assess what you have, plan your financial journey and get started. Learn all you can about your family finances, existing assets, spending patterns, expected rates of return, and current estate plans. The next step is to set some goals. If making sure your retirement is provided for, then that is a goal you must fix.
And then you start working towards achieving the goals that you set. There’s no time like the present to start. A disciplined wealth-building process can have a great impact on multiple generations to come. Which is why it is important to align your entire family to the goals that you set, so everyone pulls in the same direction.
Diversify your Investing
Spread your investments out. Why?. Some investments carry more risk than others. Also, some types of investments perform better compared to others during specific market conditions. So when you diversify, your risks are spread across a variety of investments and therefore helps mitigating it. Diversification of your investments also helps you achieve potentially higher returns with lower risk. This is done by spreading your investments across various products as opposed to holding a single investment over a medium to long time period. A well-diversified investment portfolio is better equipped to navigate market volatilities over time.
Wealth can suddenly be built by one well-performing investment and the reverse is also true. It is always wise not to put all your eggs in one basket.
Partner with the Experts
Citigold provides various tools and helpful resources to guide and assist you on your journey to wealth. Apart from a relationship manager, there is the Citigold Total Wealth Access (TWA) - an interactive RM guided tool that helps you plan, transact, monitor and manage all your investments in one place. It provides a clear picture of your financial portfolio and analyses how the portfolio value changes over time. It provides current asset-wise portfolio allocations, compares it with the Citi India Model Portfolio and also calculates the Citigold Diversification Index (CDI). Citigold Diversification Index (CDI), which aims to provide you with greater insights on the diversification level of your investments. A higher index indicates a higher level of diversification in your portfolio. Knowing your portfolio diversification level allows you to make more informed decisions towards achieving your financial goals.
You can also take advantage of the CRISIL Wealth Tracker, a portfolio-tracking tool by CRISIL provided in partnership with Citi. This tool generates tailor-made reports for all your investments and helps ensure that your investment holdings are in line with your current financial goals and needs. It also provides capital gains reports to assist you with capital gains declaration for tax calculation purposes.
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