When meeting new people, early in the conversation I am often asked what I do professionally. In sharing that I provide customized investment and wealth management solutions, it is not unusual for people to offer insights about their own financial journeys, which I always feel honored to hear.
Plot twist. Just this month, a woman I met shared that her husband had retired 10 years ago, turned 72 this year, and began taking Required Minimum Distributions. Over that decade, they felt their investments had done well. Most of their assets are in qualified (401K/IRA) accounts. I commented on the great opportunity for tax mitigation through Roth conversions during the previous 10-year lower-income window, thinking it was something they had taken advantage of. This was not the case. She only recently came to understand that they could have benefitted from conversions.
Moral of the story. Investments are just one part of the Financial Wellness equation. The positive impact of a favorably performing portfolio can be readily reduced if wealth management and taxation are not fully understood in an integrated approach. Well beyond conversions, incorporating tax modeling where appropriate helps inform strategies and decisions - for investments as well as the various areas of wealth management.
Choosing your storyline. Even from those with more sizeable assets, I sometimes hear them comment that they feel their situation is not complex enough to benefit from professional wealth management and investment advice. Rarely have I found this to be the case. You can help ensure your happily-ever-after is as constructive as possible by seeking advisor expertise with the capabilities of fully and meaningfully integrating investments, wealth management, and tax impacts.