The accumulation of wealth is about planning your journey. Building financial behaviors and making financial decisions to serve your desired outcomes. A wealth accumulation strategy is a flexible plan to attain the financial resources necessary to sustain your lifestyle, fund life events and things you want and need along the way.
"Wealth is the ability to fully experience life." - Henry David Thoreau
Define current wealth accumulation strategy
What is the purpose of our investments?
Review current investment strategy
Review current investment policy statement
Review current assumptions & estimated rate of return
Review challenges and risks to current strategy
What rate of return is required of our investments to meet our goals?
How much capital is required to meet our goals?
How much do we need to save and where are we saving?
Review wealth accumulation opportunities and processes
Is our investment policy statement inline with our financial plan?
Is there an opportunity to increase expected returns?
Is there an opportunity to reduce investment risk?
Is there an opportunity or need for additional diversification?
Is there an opportunity to reduce tax obligations and taxable events?
Is there an opportunity to increase after tax returns?
Is there an opportunity to reduce investment fees/expenses?
Review management, monitoring, investor psychology and implementation
What is our emotional capacity to implement investment policy statement?
Who is responsible for implementation of investment policy statement?
Who is responsible for ongoing research and investment selection?
Who will rebalance investments and asset allocation?
What behavioral biases and feelings are we feeling now?
What behavioral biases should we be aware of moving forward?
Define a personal / family definition of wealth
Define investment strategy and philosophy
Impliment investment policy statement
Confirm progress toward financial and life objectives
Confirm action plan and strategies to meet objectives
Confirm emotional capacity to start wealth accumulation strategy
Confirm financial capacity to start wealth accumulation strategy
Build timeline to implement recommendations and strategies
Determine who and how to implement recommendations
Confirm actions and update information on file to reflect implementation
Establish plan specific milestones and future decision points
Establish regular review schedule
Discuss and affirm the reality of future plan changes and updates. Life changes constantly and your strategy will most likely need to change or evolve over time.