The glamorous, high society lifestyle of a jet setter is one to be desired. Is there anyone who would not find jet setting around the globe for business or pleasure pretty amazing? Without blinking an eye, you can choose to jump on a plane one Saturday afternoon to shop in Paris, or plan a last minute weekend retreat with your girlfriends to Maldives. Ah… If that describes your lifestyle, I’ll bet you want to continue pursuing it. And I am sure you recognize that money is what makes it all possible; lots of money, actually. So it is no wonder that rich women often have greater than average fear about losing it all.
1. Implement A Plan To Protect Your Wealth
To help ameliorate such fears, I have five money management tips to share with you. You will not be surprised that tip number one is to implement a plan to protect your wealth. For instance, perhaps you or someone you know was sued by a jealous individual trying to prove you have liability for an action they took, just to share in your riches. Liz had this experience, and was thrilled she had planned ahead so the settlement liability did not reduce her net worth.
What happened? Liz, an heiress, was sued by a woman who worked on her horse farm. This employee and her boyfriend chose to use the pastures for an amorous encounter and a horse stepped on them. (It was the horses grazing ground, after all.) Despite the employee’s improper use of the pastures, on company time, she won the lawsuit and Liz owed damages. Planning ahead meant the insurance company paid rather than a distribution from Liz’s portfolio.
2. Learn the Basics of Money Management
Tip number two is to learn the basics of money management. This does not mean you have to train as a stock analyst; but you do need to be familiar with the rudiments of how your investment plan should be constructed so it serves as a strong foundation for your financial house. If you are not sure where to begin, I created a how-to guide, complete with exercises, to get you going on your journey— Balancing Act: Wealth Management Straight Talk for Women. All proceeds from the sale of this book benefit a scholarship fund at Temple University.
When you are learning the basics you will discover that not only do you need an astute investment plan in tandem with a plan to protect your wealth, but probably tax minimization and wealth transfer strategies, too. Sound like a lot to think about? Wealth is a responsibility, no doubt about it.
3. Find a Competent Wealth Advisor
Therefore, tip number three is my strong suggestion that you find a competent wealth advisor who quarterbacks all the services you need for your financial well-being. Not only does this professional provide investment advice but addresses financial concerns beyond investing, too, and hosts one consolidated site for your reporting and related documents–a real benefit when you are on the road.
Begin your search with a visit to: http://www.cfp.net/ to find a Certified Financial Planner™ professional in your area who offers the wealth management services you need. As you vet the professionals you identify for consideration, take note of whether they listen to you, educate you as the conversation unfolds, and have a long-term perspective focused on you. If all they want to discuss is their great investment product, watch out! Your continued financial success is built upon what you need and what is important to you, not on a product.
4. Avoid the “Just Sign Here, Honey!” Syndrome
Now we will segue into tip number four, the most difficult for many women: Avoid the “Just sign here, honey!” syndrome. As a woman Certified Financial Planner™ professional for the past fifteen years, the number one mistake I have seen women make is to deflect their money management responsibilities to a man in their life–whether their father, another male family member, or–often the most damaging of all–to their love interest. No matter how gorgeous, sexy, charming, or authoritative, I can pretty much guarantee that the spouse or life partner in your life will not do a better job managing your money than you will.
Time and again I have witnessed that special person in her life dissipate, spend in ways not aligned with her values, and often just plain take her wealth while she stands on the sidelines wanting affection and rationalizing she doesn’t know enough to make her own decisions. Remember, such rationalizations reflect dated thinking. Happily, we are in the twenty-first century and you do know what to do. Or you can avail yourself of the resources you need to figure out how to manage your money–so you can fulfill your values, needs, and interests as well as avoid losing your wealth.
5. Make a Spending Plan
Tip number five is to make a spending plan. Yes, even if you work with the best wealth advisor, unless you know where your money is going (your expenses), you may be in for unpleasant surprises down the road. Never assume you know; be precise about what comes in and goes out; I believe your sense of command over your personal finances will grow accordingly.
Now… Get Started!
Now it is time to get started. Regardless of your past money management habits, muster the necessary confidence and discipline to take charge of managing your money, beginning with the tips you just read. I predict the fear you once felt about losing your money will melt away. Even better, you may discover a powerful new ability to take care of yourself and your family no matter what curve balls life throws your way. Enjoy your newfound financial independence as you continue to pursue your preferred style of living!
Joslyn G. Ewart is Founding Principal of Entrust Financial LLC®. Her deepest passion is to help others make the right choices at pivotal times in their lives, thereby easing financial concerns. This passion also inspired her to write Balancing Act: Wealth Management Straight Talk for Women (August 2016). Ewart earned her Bachelor of Science degree from Case Western Reserve University, her Master’s from Temple University and Principal’s Certifications from University of Pennsylvania. She has attained the Certified Divorce Financial Analyst™ (CDFA™) and CERTIFIED FINANCIAL PLANNER™ (CFP®) professional certifications.
Balancing Act: Wealth Management Straight Talk for Women is available for purchase on Amazon.
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