7 Things To Do With Your Wealth, Now That You Have It
Written by
Casey Bond
Edited by
Ashleigh Ray
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Accumulating wealth is a significant achievement, but what you do with that wealth can be even more impactful. It’s important to understand that having wealth comes with responsibility. It’s not just about what you can buy, but also about what you can build, contribute and leave behind.
“The best use of wealth, especially when considering retirement, is to create a life that is not only financially secure but also rich in experiences and contributions,” said Dominic James Murray, CEO and independent financial advisor at Cameron James. “It’s about striking a balance between enjoying the present and securing the future.”
So, if you’ve worked hard to grow your wealth and now want to take the next step of putting it to use, here are some ideas.
Invest in a Diversified Portfolio
Building wealth is just the beginning; the next step is to ensure it grows sustainably, according to James. That means building a diversified investment portfolio that includes stocks, bonds, funds, real estate and maybe even alternative investments. “The key is to balance the portfolio in line with individual risk tolerance and long-term financial goals,” James said.
It’s also crucial to regularly review and rebalance your portfolio. “Market conditions change, and so should investment strategies,” James explained. If you take this approach to managing your portfolio, you’ll be able to capitalize on growth opportunities while mitigating risks.
Establish a Robust Retirement Plan
If you’ve amassed a large amount of wealth, retirement planning should be your top focus. And according to James, successful retirement planning involves more than just saving. “It’s about creating a sustainable strategy that ensures your wealth lasts throughout your retirement years,” he said.
If you haven’t already, start by assessing your retirement goals. Then calculate how much money you’ll need to make that lifestyle a reality while planning for contingencies. (A common rule of thumb is to budget for at least 70% of your pre-retirement income during retirement.)
James explained, “It’s essential to start by envisioning the kind of lifestyle you wish to maintain post-retirement and then work backwards to ascertain how your wealth can best be allocated to achieve this.”
Plan for Estate and Legacy
Once you have a comprehensive plan for how to manage your wealth now, the next step is to plan for what happens to your assets after you. “Estate planning ensures that your wealth is distributed according to your wishes and can help minimize tax liabilities for your heirs,” James said.
But it’s not just about sound asset management. Think of estate planning as creating your legacy.
Sean Lovison, founder and lead planner at Purpose Built Financial Services, added, “It’s about crafting a story that lives on through educational funds for future generations, community projects that bear your mark or charitable foundations that echo your life’s passions.”.
Invest in Experiences
Life isn’t just about possessions — it’s also about experiences. Investing in experiences like travel, cultural exploration and other adventures enriches your life in ways material things simply can’t.
“True wealth is found in the richness of experiences,” Lovison said. “It enables life-enriching journeys, the pursuit of passions, and the creation of unforgettable memories that far outweigh the value of material possessions.”
Support Entrepreneurial Ventures
Supporting budding entrepreneurs, particularly in underrepresented sectors or communities, can have a cascading positive impact on the economy. But being part of someone’s business journey can also be incredibly rewarding and offers an opportunity to share your wisdom and experience.
“Channeling your wealth into business ventures isn’t just about economic gains; it’s a fulfilling journey of bringing your visions to life, driving innovation, and potentially creating jobs and opportunities for others with similar beliefs or values,” Lovison said.
Invest in Education and Self-Improvement
Education is a powerful tool for change, both personally and socially. Investing in your education, or supporting others in theirs, can open doors to new opportunities and ideas. This could mean funding your continued education, supporting family members in their academic pursuits, or creating scholarships for those who lack resources.
And keep in mind that self-improvement also extends to non-academic learning, such as personal coaching, fitness training or exploring new hobbies. “Investing in education and self-growth is the wisest use of wealth,” Lovison continued. “It’s an investment in the future, opening doors to new opportunities, fostering personal development and expanding your horizons.”
Contribute to Charitable Causes
Finally, donating to charity, whether it’s local or global causes, can bring about real change in communities. This isn’t just about writing a check; it’s about understanding the issues that matter to you and using your resources to make a difference.
“In advising clients on charitable giving, I focus on aligning their philanthropic goals with their financial plans,” James said. “This includes exploring tax-efficient ways of giving and ensuring that their contributions make the most significant impact.”
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