Financial Management: Investment Strategies and Wealth Management

by humagaia

Financial management, wealth management and investment strategies should be pulled together to create a total wealth creation and retirement plan package for financial health.

Investment strategies support your personal financial management plan, wealth management plan & retirement planning, by satisfying your own financial requirements, with investments that meet your risk & reward profile.
Financial management gives you the information and base on which to release assets.
Wealth management controls where and when investments should be made.
Retirement planning strives to produce enough capital to realize your financial requirements in retirement.
Investment strategies work in conjunction with all plans to maximize revenue and value, and to minimize risk and losses.

Personal Financial Management Plan

Plan and monitor financial resources

Once you have gained investment knowledge, and understand how to employ that knowledge to your own investment strategy, you will be ready to create investment success.

Piecing together a personal financial management plan is the first step.

This is much the same as a business financial management plan, in that you must plan, monitor and control your monetary resources:

  • Record your income
  • Record your outgoings and tax position
  • Set out your financial needs
  • Note where additional income could be achieved
  • Note where financial savings could be made
  • Record what you need to save for
  • Keep aside money for a rainy day
  • Develop a short-, medium- and long-term financial plan that keeps within your budget and supports future financial needs.
Personal Financial Plan

Once your financial plan has been recorded you can refer back to it when circumstances change.

Adjusting the plan is much easier than recreating it each time you need to get to grips with what is happening in your financial life.

With a personal financial management plan in place, investment strategies can be worked upon to achieve your wealth management planning, and retirement planning, requirements. 

Ebook: Personal Financial Management (Fintech Series by Innovation Edge)

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Dave Ramsey's Complete Guide to Money: The Handbook of Financial Peace University

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Wealth Management Plan

Utilise unallocated resources to build wealth

The information you gain about any excess capital available, after you have set out your personal financial management plan, can be utilized in your wealth creation, wealth management, and retirement plans.

Wealth management assumes that there is wealth there in the first place. But wealth management planning is also about creating that wealth in the first place. 

From your financial plan you record the amount that you can safely utilise for investment. This initial pot of money is what you can use without placing a financial burden on yourself and / or your family. Any amount is a starting amount. From little acorns.......

You know your start point. Wealth management planning is all about planning to get to a point in the future where you are better off than you are now. Life can throw curve-balls at you at any time. Wealth management is about dodging these by planning in incremental stages, with short-term goals, followed by medium- and then long-term requirements.

A plan could be, from a starting point of $100/month, to build a return on investment of $50/month, within 3 months. That is a short-term goal. From this a medium-term goal could be to achieve an additional investment income of $1,000 per annum by the end of the first year. With compounding and leverage you might be aiming for $10,000 extra a year, within 5 years.

By breaking the task into achievable short-term goals, the longer-term wealth management requirements become less daunting. Planning for wealth and retirement are essential for achieving security and a financially secure retirement.

Retirement Planning

Utilize a proportion of otherwise unallocated resources to build a pot of money for retirement

Retirement planning is necessary in order to ensure a happy retirement without financial worries. Although it could be included in a wealth management plan it is best to look at this aspect of financial planning as a long-term investment planning exercise.

Retirement planning should be undertaken as soon as possible, no matter what age you are. The sooner your plan is set out, the greater the potential pension pot you will have when you eventually decide to retire.

Pension planning is probably the longest long-term plan you will put in place and undertake. Plan it properly and the rewards could be huge.

Guides For Retirement Planning

The 5 Years Before You Retire: Retirement Planning When You Need It the Most

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How to Retire Happy, Wild, and Free: Retirement Wisdom That You Won't Get from Your Financial Adv...

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Preparing for Retirement: A Comprehensive Guide to Financial Planning

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How to Make Your Money Last: The Indispensable Retirement Guide

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Investment Strategies

Use your knowledge of your monetary requirements to choose the investments best suited to those needs

Retirement planning, wealth management, tax and investment strategies, property investment, banking relationships, insurance and life assurance products, and even "alternative" investments such as art, antiques, commodities, options, futures and precious metals, all have a place in a well-organised and well-researched investment strategy.

Your financial management and wealth management plans are fulfilled by you undertaking the correct investment strategies. Invariably, this comes by mastering the stock markets and applying your new found skills and knowledge to deploy your assets and income.

Each individual has a unique personal profile that only they know. This profile is not static, but changes daily, due to both personal and external factors. Any investment strategy you put together must reflect this, and be flexible enough to be able to be changed, and to take advantage of, those changes.

It is my objective to give you the information to sort out the confusion, by assisting you to define and then act upon it, for your highly personal plan for financial success. You must learn how to exploit your own personal strengths and knowledge, and to set a timetable for success based only on what is right for you and you alone (read family here for those not having a "single" focus).


Creating Wealth And A Happy Retirement

Minimise the downside and losses. Maximize the upside and profits.

The only way to communicate the information you need to achieve these goals is to start with the basics and progress from there to more sophisticated strategies. By pulling together your income and outgoings into your personal financial plan you will see the overall picture of your financial well-being (or not).

You must now learn how to protect your:

  • income
  • assets
  • wealth
  • profits

to minimise the risks, downside and losses.

You must learn how to:

  • pyramid profits (do not confuse this statement with "pyramid schemes" - which are most definitely not to be employed in your wealth creation scheme).
  • build wealth faster 

Underpinning all successful investing, however, are certain basic principles - the ground rules that apply to both the simple and the complex strategies you decide to employ.

This is the subject of the next article. 

Wealth & Retirement

What is Financial Management?

Financial Management is one of the important function of management in dealing with the resource and monetary aspect of business for funding and operating a business with adequate return. Sourcing of Fund: The financial management ...

What Is Wealth Management?

Wealth management is an investment advisory discipline that incorporates financial planning, investment portfolio management and a number of aggregated financial services. High Net worth Individuals, small business owners and families who ...

What Is An Investment Strategy?

In finance, an investment strategy is a set of rules, behaviors or procedures, designed to guide an investor's selection of an investment portfolio. Usually the strategy will be designed around the investor's risk-return tradeoff: some ...

What Is A Financial Plan?

In general usage, a financial plan is a series of steps which are carried out, or goals that are accomplished, which relate to an individual's or a business's financial affairs. This often includes a budget which organizes an individual's ...

What Is Retirement Planning?

Retirement planning, in a financial context, refers to the allocation of finances for retirement. This normally means the setting aside of money or other assets to obtain a steady income at retirement. The goal of retirement planning ...

What Is Investment Management?

Investment management is the professional management of various securities and assets in order to meet specified investment goals for the benefit of the investors. Investors may be institutions or private investors. The term asset ...

Next Investment Article

How to invest has few basic rules. Here are seven investing rules to ensure the creation of successful investment strategies.
Updated: 12/14/2012, humagaia
Thank you! Would you like to post a comment now?


humagaia on 03/13/2012

Katie, you better start reading quicker, there is a load more to come.

katiem2 on 03/13/2012

What a wealth of information. I'm not even going to pretend to absorb this in one reading. One thing is for certain, shifting your thoughts and plans about your financial management is the wave to stay atop. With the ever changing climate it's vital to stay informed as to whats going on. Thanks for the financial food for thought. I will be back to read again!

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