From the Desk: Wealth Management v. Financial Planning
- 100226
- 1 minute
When people ask what I do for a living, I tell them "wealth management." Most people hear "financial planning," and that's understandable. The two overlap, and many financial planners do excellent work helping families save, invest and protect what matters to them.
Wealth management adds another layer. It means looking at how each financial decision ripples outward: how estate and trust law applies; what taxes can be triggered by selling a security, taking an IRA distribution, or naming a beneficiary; when disclaimer rights make sense; and how all of it affects not only the client but potentially the generations that follow.
Over the years, we've worked with families who avoided significant taxes simply by restructuring accounts and updating beneficiary designations. No new products and no complicated strategies were involved.
What stood out was a pattern. In nearly every case, the original setup was put in place by someone the family trusted, someone who genuinely had their best interests at heart. Yet without the wealth management layer, certain questions never came up: how beneficiary designations are taxed for heirs; whether investments outside retirement accounts might carry an unexpected tax bill; and whether charitable gifts come from the right assets.
Each of those questions deserves more than a sentence, so I'll be taking them one at a time in this series.
I'll start with the one that surprises families most often: the beneficiary form. It's usually a single page, filled out in a few minutes and rarely looked at again. Yet it generally overrides what's written in your will, and it can determine how much of what you leave behind actually reaches the people you love. Next time, I'll share what we look for on that page, and why a choice that seemed perfectly sensible when it was made can end up costing heirs a great deal.
Stay tuned for more like this from the desk of Joe Randazzo.
The views and opinions expressed herein are those of the author(s) noted and may or may not represent the views of Beacon Advisory or Lincoln Investment. The material presented is provided for informational purposes only. Information is based on sources believed to be reliable; however, their accuracy or completeness cannot be guaranteed. Nothing contained herein should be construed as a recommendation to buy or sell any securities. As with all investments, past performance is no guarantee of future results. No person or system can predict the market. All investments are subject to risk, including the risk of principal loss.
2214 Enterprise Pkwy E, Twinsburg OH 44087
