When it comes to managing and growing your wealth, it pays to have a deep bench. Who’s on your money team? Among Millionaire investors who work with a team of advisors, one-third consider a team of two advisors to be ideal, while 36 percent prefer to work with a team of three. Of those who consider a money team of two to be ideal, the highest percentage (41 percent) are Millionaire Baby Boomers ages 45-54. Of those who consider three advisors to be the optimum money team, the highest percentage (56 percent) are Gen Xers ages 36-44. Ultra High Net Worth households with a net worth between $5 million and $25 million are most likely to field a money team of at least three advisors. Nearly four-in-ten (39 percent) consider a team of three to be ideal. Among these investors, the age groups most likely to agree are those under 50 (50 percent) and seniors over the age of 65 (40 percent). Who do you want on your money team? You can’t tell the players without a scorecard. The website Workable Wealth identified several key players and the positions they play.
A recent Millionaire Corner article, “Financial Planning--Who's On Your Money Team?,” provides the lineup of the important people you need on your team—millionaire or not.
CERTIFIED FINANCIAL PLANNER™ Practitioner. Along with your estate planning attorney, this player is responsible for helping you paint the “big picture.” This perspective allows you to identify your financial goals and prepare for a financially secure retirement. This will include money management, investing advice, estate planning, insurance planning, business planning, and other strategies to help you get ready for retirement and the ability to enjoy your senior years in comfort.
Certified Financial Planner Board of Standards Inc. owns the certification marks CFP® and CERTIFIED FINANCIAL PLANNER™ in the U.S., which it awards to individuals who successfully complete CFP Board's initial and ongoing certification requirements. (I can attest that the test to qualify as a CFP® was as difficult as the Bar exam!)
Accountant. An accountant or an attorney experienced with tax matters is also an essential player on your team. It’s good to have an accountant or lawyer who will prepare your taxes and offer appropriate tax shelter recommendations.
Insurance Broker. This person will help navigate the wide range of available products and determine which best suits the needs of you and your family. If they team with your estate planning attorney, you can be sure that all of your objectives are met and that everything works towards the common goal of placing you in the best position when you retire.
Estate Planning Attorney. This is the “pivotal” money team member. This is your clean-up batter or your quarterback. The attorney is crucial and will assist you with the creation of your estate plan. He or she will help you draft essential estate planning documents like a will, living trust, a health care directive and a power of attorney. Your quarterback will make sure that your assets are protected and your estate is settled according to your wishes.
Huddle up with your quarterback and make sure you have a winning game plan for your estate planning. Please schedule a time to come in and talk about your own estate plan, and if you would like some suggestions on who would be a good addition to our team.