The Importance of Financial Goals in the Wealth Management Process

23 Aug 2021

The Importance of Financial Goals in the Wealth Management Process

Whether you have several decades until retirement or are nearing the light at the end of the tunnel, you have probably given some thought to wealth management . No matter where you find yourself on your journey, it is never too early to start planning for your financial future.

Wealth management is a comprehensive investment plan that combines various financial services. Whether you need to improve cash flow, modify life insurance plans, or simply take control of your personal finances, a wealth management firm is a great solution.

Before you can choose a wealth management firm to help you achieve financial success, you need to first identify these goals. During your consultation with our team, we always start by discussing your short and long-term financial goals. Understanding these goals is essential to creating a tailor-made wealth management strategy to meet your needs.

Below, we discuss why having clear financial goals is essential to the wealth management process. We also review the benefits of partnering with a comprehensive wealth management firm.

Meeting Goals Is Cause for Celebration

While we may be getting ahead of ourselves by starting with this particular topic, we believe that it’s important to look toward the future. One of the best things about setting clear goals is that meeting them gives you something to look forward to. This strategy can be highly effective when creating your wealth management plan.

Think about how excited you get when you close that major deal at work or leave for an extended vacation. That feeling of reward when you accomplish a set task or reach a milestone on your road to financial achievement keeps you focused.

When developing your wealth management strategies, you should have a good mix of short- and long-term goals. If all of your goals will take decades to achieve, it can be easy to lose sight of your mission. Breaking up your goals into various time frames is much more efficient.

For example, one of your goals may be to take out a larger life insurance policy. Voice this goal to your wealth management team. While you work towards a longer-term personal finance-related goal, you can easily take steps to choose a new life insurance policy and check that task off your list.


Having trouble getting your financial goals started. At BentOak Capital we can help you build a financial plan that’s specific to you. Connect with us today.


Goals Keep You Accountable

You didn’t achieve your current level of financial success without having a high level of accountability. Setting financial goals with your wealth management team will help you stay accountable in this area of your life as well.

Every time you make a financial decision or complete a key task, you can strengthen your resolve. With that said, do not be arbitrary in your goal setting. Phrases like “I want to save more for retirement” are not nearly as effective as “I want to reach $5 million of investable assets.”

Your financial advisor will be able to tailor management strategies towards a clearly defined goal. Not only that, but they can also help keep you accountable when you discuss your progress with them. They can provide vital feedback that will help you push on towards these goals you’ve set for yourself.

Goals Are Essential to Creating a Wealth Management Plan

As noted above, having a set of clear financial goals is essential if you want to partner with a wealth management team. The financial advisor will utilize these goals to create a custom management strategy.

Wealth management teams take a holistic approach to your financial future. Their offerings include:

  • Cash flow solutions
  • Personal finance plans
  • Life insurance planning
  • Tax preparation
  • Investment strategies
  • Estate planning
  • Retirement planning

While an expert team of advisors can certainly help you navigate these various solutions based on your age and current financial standing, goals provide them with a good baseline and jumping-off point. They are there to serve you and cannot effectively do so without knowing your goals.

Goals Create a Sense of Urgency

When your wealth management plan includes clearly defined goals, it forces you to prioritize. You will no longer be trapped by vague phrases like “save more” or “prepare for retirement.”

Instead, you and your financial firm will be working towards clearly defined targets. You will gain a more comprehensive understanding of your assets and how to manage them. Even if you have decades until retirement, you should start preparing for the future. Doing so will ensure that you are ready, no matter what life throws your way.

Goals Are Essential for Risk Mitigation

During your consultation, a wealth management firm will cover a wide range of topics regarding your financial future. In addition to rudimentary things like life insurance, they will likely discuss investment planning.

Your goals and personal preference will heavily influence the direction of that conversation. Goals are how you determine your benchmarks, which ultimately involves the risk needed to reach those benchmarks.

When it comes to investing your assets, there are many different ways to distribute your funds. It is important to have a diversified portfolio. However, your individual goals will also come into play.

Benefits of Comprehensive Wealth Management Strategies

Once you have set your financial goals, you are ready to partner with a wealth management firm. Doing so is the best way to manage your funds and secure your financial future. The benefits of partnering with a wealth management firm include:

Access to a Multitude of Services

Without a wealth management firm, you would likely have to partner with separate entities for life insurance, investment advice, estate planning, and every other service. Since wealth management firms can handle each of these services in house, all of your essential documents will be in one convenient hub.

Your dedicated financial advisor will help you navigate these various services and determine which ones are right for you. You will develop a strong relationship with your advisor, which will allow them to better assist you through all of life’s financial challenges.

Retirement Preparation

A wealth management firm will help you get the most out of your retirement. Ensure that you reap the benefits of your decades of hard work. Through a series of investments, annuities, and other strategies, you will be able to enjoy your golden years without compromising your quality of life.

Expert Advice

When you partner with a wealth management firm like  , you get access to our decades of experience in the financial world. We take a holistic approach towards managing your finances and can help you achieve long-term wealth. Contact us today and experience the difference of BentOak Capital!

BentOak Capital

BentOak Capital complimentary eBook

Get the latest posts from BentOak Capital

Keep updated on how the latest financial trends impact you!

"*" indicates required fields

This field is for validation purposes and should be left unchanged.
More about the author: BentOak Capital Team