Purposeful Wealth Management

By Tom Warburton

What if there were a way to think purposefully about the major wealth management decisions each of us must make? Wouldn't it be great if someone could explain to us - in plain and simple English - the basics we must know to implement purposeful wealth management? At last, here's good news. Written for every person that wants to "make work optional and maintain that status," Purposeful Wealth Management reveals a process for ascertaining your uniquely personal goals, values, needs, resources, and obligations, then purposefully orchestrating the five key elements of wealth management - investments, taxation, estate planning, insurance, and charitable intent. Purposeful Wealth Management is the one and only book you'll need to have a successful wealth management experience.

• Language: English
• Publisher: BookBaby
• Release date: Feb 24, 2015
• ISBN: 9781942451051

Book preview

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CHAPTER 1

PURPOSEFUL WEALTH MANAGEMENT

What do you value about money?

This is the first question I ask in our initial meeting with a prospective client. Without fail this simple question has an impact. Some people quip, I know I’d like to have more of it. Others say they’ve never thought about it.

The second of nearly seventy questions covering everything from professional goals to personal relationships to individual interests is similar but more focused: What in particular do you value about money?

Among the responses are terms like freedom, fun, and security. Some people will even advise that money means status. You might be surprised how competitive some wealthy people can be and how nonchalant others can be—even when they have more money than they could possibly spend in a lifetime. Or, as I like to say, they have enough money to be wealthy to 100.

My firm views our initial meeting with prospective clients as the discovery interview.

The goal of this meeting is to clarify the client’s purpose (their goals, values, needs, resources, and obligations). Both the client and our company need to know what the individual hopes to accomplish with his or her money (a topic we’ll explore in more detail in the next chapter) and why the client embraces his or her unique beliefs.

After all, if we don’t understand the goals, values, needs resources, and obligations of our client, how could we ever hope to provide purposeful advice?

Let’s examine the overall concept and various processes involved in purposeful wealth management.

THE PURPOSEFUL WEALTH MANAGEMENT APPROACH

Purposeful wealth management is based on knowing the client’s goals, values, needs, resources, and obligations.

All advice and all decisions are made with the uniqueness of each individual’s purpose in mind.

Unlike traditional money management, purposeful wealth management encompasses and coordinates all the moving parts of a client’s wealth.

What’s the opposite of purposeful? I’d say, the pursuit of incremental unnecessary wealth by attempting to identify shiny things or return chasing.

A shiny thing holds the promise of above-market returns—and it’s clever. Oh my gosh, it’s clever!

It might be a fund that has a $500,000 minimum. It’s exclusive. It’s fun to talk about at cocktail parties. You can hear people saying, "Wait till I tell my friends about this