wealth management Archives - BentOak Capital

Top Investment Tips for Profitable Wealth Management

Posted on September 27, 2021 by RFTB Dev

Whether you happen to be saving for retirement or a rainy day, you want to ensure that your money is working hard for you. Choosing the right investment products can feel overwhelming and intimidating, but it doesn’t have to be that way. Profitable wealth management can be quite easy when you keep these top investment tips in mind.

Set Clear Goals

The first thing you need to do is establish a specific goal for your wealth management. If your goals are more short-term, then you may want to select different investment products. A short-term goal often does better outside of investing in things like mutual funds and the stock market. For those who will need access to their money in two years or less, you might be better off with a money market account or a savings account that accrues interest.

Are you looking at more long-term goals such as retirement or expensive college tuition for your children? Long-term goals can be better met through investing in the stock market or mutual funds. You can choose to invest your money wisely on your own or opt for local investment management in the Fort Worth, Lubbock, or Weatherford areas. Make sure to consider all of your options to create a plan that caters to your unique financial situation.

Consider Your Risk Tolerance

Once you can recognize your financial goals, you can begin to consider your tolerance for risk. Investors who don’t need access to their money for many years can often tolerate a bit more risk in their portfolio. If you are in your twenties or thirties saving for retirement, you can handle a more aggressive investment approach that consists mostly of stocks and mutual funds.

As you make the transition closer to your final goal, you might want to consider scaling back your investments. You may need to switch investment products and investigate a more conservative portfolio that consists of investment products like bonds and money market accounts. Quality investment management in Fort Worth, Lubbock, and Weatherford can help you choose the right products based on your risk tolerance.

Look for Mutual Funds Over Individual Stocks

A do-it-yourself investor may have a hard time identifying individual stocks to purchase in order to grow their portfolio. Even a seasoned investor may face this challenge. This is why many people prefer to invest in mutual funds for more profitable wealth management. Mutual funds help you to diversify your portfolio by pooling together money from multiple investors and purchasing a collection of securities that can include both stocks and bonds.

This unique portfolio is managed by a professional who helps to refine the included assets in order to increase capital gains and income for the investors. In comparison to other investment products, mutual funds give you access to a diversified portfolio at a relatively low price.

Keep in mind this is just a simplified overview of what mutual funds can offer. There are several different types of these funds that you may want to learn more about to maximize your wealth management.

Need some help organizing your portfolio, we’d love to help! You can reach out to our BentOak team today to learn more.

Maximize Returns

When it comes to profitable wealth management, everyone wants to know what kind of return they can get on their investment. A two to three percent return can seem like a paltry sum compared to others who are achieving ten to fifteen percent returns. Investing in the stock market or mutual funds tends to yield these higher returns historically.

Again, this can come with a greater risk so be sure to consider whether your goals are more short-term or long-term. The stock market may take small hits as the economy fluctuates, but it tends to be successful long-term if you invest in excellent companies that are purchased when prices are low. Be sure to do research on companies you are considering investing in to determine if they have the potential for this type of long-term success.

You need to have a strategy in mind when it comes to investing. This is where finding quality wealth management services can come in handy. Expert money managers can help you to find the stocks and mutual funds that have the most potential to yield these higher returns for your portfolio.

Minimize Your Fees

Every time you purchase new investment products, you are likely to pay a fee. These fees can be in the form of commissions paid to your wealth advisor or trading fees for buying and selling stock. Ultimately, you should make it your goal to minimize as many of the fees as possible. Investing for the long haul is often the best bet because you are allowing that money to work for you instead of spending it on fees that won’t accomplish anything for your future.

It’s possible to save millions over the course of your lifetime just by minimizing the fees you pay on your accounts and trading. You may feel like you are making more money by constantly buying and selling, but this type of activity can actually be detrimental to your long-term wealth management.

You want to ensure that your dollars are working as hard for you as they possibly can. Before you make the decision to invest, you should consider your goals and how much risk you can tolerate on your way to achieving them. Taking the time to figure out your investments now can help you to build substantial wealth over the years.

Wealth Management Solutions with BentOak Capital

Are you ready to take control of your financial future? Would you like to partner with an experienced team that can help you manage your wealth?

If so, then it’s time to contact BentOak Capital. We offer comprehensive financial planning services to clients in a variety of fields. You can reach us by completing a contact form or by calling one of our three Texas-based offices.

The Importance of Financial Goals

Private Wealth Management or Financial Planning: Which Is Right for You?

Posted on September 27, 2021 by RFTB Dev

Nowadays, you see more people becoming aware of financial wellness and the importance of having a plan in mind. However, the eagerness to get our finances together often raises new concerns. For example, many feel lost when finding the right tool to help them reach their financial goals.

And this is no minor issue. So, let’s talk about the two primary solutions that bring security and clarity around one’s finances: private wealth management and financial planning.

What is Private Wealth Management

Private wealth management is a personal financial advisory service comprising financial planning, portfolio management, and other services. The wealth manager provides you with a wide range of products to help you solve a financial situation, enhance your wealth, and reach your short or long-term financial goals.

Types of Wealth Management Services

Many people believe that only a financial advisor can provide private wealth management service, and that is not true. Banks and large brokerage firms often offer wealth management services as well.

Meanwhile, you may find firms specializing in private wealth management. These firms usually come in one of the three following categories:

Product Vendors who give you access to various products. They often focus on developing and optimizing your portfolio.
Customized Traders focus on individual trades instead of the overall portfolio.
Planners, or coaches, serve more as the consultant. If you’re looking for someone who will help you minimize cost and expense or maximize tax advantages, a planner could be a suitable choice.

Benefits of Private Wealth Management

Similar to many other financial services. Private wealth management frees you from having to manage all your assets by yourself. Not only is wealth management a time-consuming task, but it also requires advanced knowledge to do it right.

Considering the value involved in private wealth management, mistakes are often extremely costly. Working with a wealth advisor can therefore help you.

Who Could Use Private Wealth Management?

Private wealth management is, by nature, high-value. Therefore, individuals in the higher-net-worth category tend to find private wealth management the most beneficial. This means your net worth should be a quarter-million or more with a complicated financial structure involving various forms of assets.

What is Private Financial Planning

Long story short, private financial planning is one of the most effective ways to reach financial goals for ordinary individuals.

For decades, we’ve been talking about the lack of financial literacy and the severe impact it has created in our society. For example, 78% of American adults live from paycheck to paycheck, and 70% of them are in debt. Most of them don’t have a budget and can barely save anything every month.

If you find yourself in a similar situation, then private financial planning might be your way to a better, safer life.

Benefits of Private Financial Planning

Private, comprehensive financial planning can help you manage your finances throughout different stages of your life while keeping the larger picture in mind. By investing in private financial planning, you can navigate different financial tasks more effectively, including:

Paying down your debts first
Rebuild your credit score
Building up an emergency fund
Saving up for a big purchase
Planning for retirement

With a plan put together, you now have guidance on how to reach your financial goals. In addition, these plans are often updated periodically according to your life events to prevent you from falling off the wagon. In other words, private financial planning can help you make financial security a reality.

Types of Financial Planning

There are numerous financial planning services. Depending on your goals, you can choose from

Tax planning, which helps you maximize tax advantages.
Investment planning, so you can build an investment portfolio and begin generating passive income.
Cash Flow planning, which helps you manage your money coming in and out.
Retirement planning, so you can maintain a desired lifestyle after retirement.
Legacy planning, which protects your loved ones after your time on earth is done.

If you have bigger plans or think you need multiple planning services, there’s also comprehensive financial planning. A comprehensive plan covers various aspects of your life, such as debt reduction, short-term saving, and retirement planning. Therefore, it is perfect for those planning their financial future from ground zero.

Is Financial Planning For You?

So, is private financial planning the right choice for you? In most scenarios, the answer is yes.

People tend to misunderstand and think you must be rich to invest or talk about finances. However, the truth is anybody could benefit from financial planning, especially those who are struggling right now.

The goal of financial planning is to find a solution to your problem. If it feels unrealistic to think about retirement, it may be the best time to talk to a financial advisor about your concerns and goals.

Finding a Financial Advisor: What is Fiduciary

However, not all financial advisors are made equal, and the last thing you want is to work with the wrong person on your future wellbeing.

When looking for the right advisor, your best shot could be working with a fiduciary. Fiduciary financial advisors are required by the law to put your best interest as the top priority. Otherwise, they can face severe penalties. This guarantees that your advisor is always on your side and thinking about your future.

Conclusion

In conclusion, private wealth management is most suitable for high net-worth individuals. If your gross asset is at least a quarter-million, you may consider working with a wealth manager so you can preserve and grow your wealth.

However, if you consider yourself an ordinary individual and need more insight, clarity, and structure in your personal finances, private financial planning could be the solution you need.

Both wealth management and financial planning should be comprehensive and cover various core aspects of your financial wellbeing. If you’re unsure about where to seek advice, speak with a fiduciary financial advisor to find out the most suitable strategy for you.

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

9 Ways Towards Preserving and Growing Wealth

Posted on September 27, 2021 by RFTB Dev

After over a year of the Covid-19 pandemic, many have seen an increasing gap in wealth distribution in America. Eleven weeks into the pandemic, the world already saw a 42.6 million unemployed population versus a 19.15% increase in billionaire wealth. With such a sharp contrast, no wonder the general public is discussing ways to preserve and grow wealth in the difficult economy.

What is Wealth Preservation

To preserve wealth, we must first understand what wealth is. According to Investopedia, wealth stands for “the value of all the assets of worth owned by a person, community, company, or country.” It is calculated by subtracting all debts from the total market value of your physical and intangible assets.

In general, your goal is to preserve and grow your wealth. After all, nobody wants to work their entire life and only enjoy a few years of relaxation, whereas even such a simple goal is becoming more unachievable in the current economic landscape.

But the idea behind wealth preservation and development is not rocket science. To preserve means you will maintain your income and assets while avoiding an increase in debt. And to grow your wealth means you will utilize what you currently own to gain more.

Learn to Budget

Budgeting is a great method to use to preserve your wealth. Proper budgeting will show you a comprehensive overview of your current financial condition, including the market value of all assets you own and all your income.

A good budget should explain your cash flow structure and help you determine how much you can spend on each category, including rent, utilities, debt payments, and personal spending.

Save a Percentage of Your Income

Next, start saving a percentage of your income, preferably the moment you get paid, instead of waiting till the end of the month. While you may often hear people say you cannot save your way to being rich, saving is one of the foundational steps one should take as it helps you build up your initial funds to unlock more possibilities.

It is also best to have considerable savings, so you keep your retirement savings and emergency funds separate.

Use Tax-Advantaged Accounts

Put your long-term retirement savings into a tax-advantaged account.

The proper account type can help you further minimize tax liability and reduce your financial burden when you retire by providing you certain tax deferral (pre-tax) or tax exemption (after-tax) options.

Tax-deferred savings accounts include traditional 401k plans and traditional IRA accounts. After-tax investment accounts are also known as Roth accounts, such as Roth IRA and Roth 401k.

Learn the Basics of Investment

You don’t have to become an investment expert, but it is beneficial to learn the basics of investment, such as the forms of assets you can invest in, how short-term trading functions, and how stock, bond, mutual funds, and other assets may fit in your financial future.

Learning the basics of investment allows you to invest small amounts on your own until you’re ready to do something more systematic. It also helps you see the larger financial picture more effectively.

Be Properly Insured

Part of wealth preservation is about protecting your wealth. Therefore, being adequately insured naturally comes into the picture. Furthermore, the past year and a half have taught us that life is full of uncertainties. And as reluctant as you may feel about talking about the worst possibilities, you cannot deny that insurance is an effective shield against unpredictable risks.

And your insurance protects more than just yourself and your assets. It also protects your loved ones while giving you more resilience against unwanted situations, so a significant medical bill or accident wouldn’t push your entire household into despair.

Build Passive Income with Real Estate

Real estate has always been a method sought-after by the public to preserve and grow wealth. Rental properties, especially short-term rentals, are great ways to generate passive income, letting your money create more money.

Another popular form of real estate investment is property rehabilitation, also known as flipping. Investors purchase distressed properties and increase the home value by either remodeling a single-family home into multi-units or remodeling an old house and reselling for profit.

Precious Metals

Another way to preserve and grow your wealth is by turning part of your monetary assets into precious metals. For thousands of years, precious metals are considered a safe way to store your wealth. That is because these metals, specifically gold and silver, tend to retain their value over a long time, regardless of how the economy and political situations may change in the world.

Use Comprehensive Financial Planning

Finally, one of the best ways to preserve and grow your wealth is with comprehensive financial planning. As the name suggests, this type of financial planning takes everything in your life into consideration and is, therefore, best done when working with a professional.

Your financial advisor will evaluate your current financial condition, short and long-term goals, risk tolerance, and essential things in your life. The financial plan will change as your life unfolds, so you don’t fall off track with your wealth preservation and growth.

Conclusion

The reality is, more Americans have to tap into their emergency funds and retirement savings every day. But, according to Pew Research, nearly half of Americans who are currently working have expressed concerns that the economic consequences of the coronavirus outbreak may bring them further back from reaching their financial goals.

Fortunately, this situation is fixable with the proper wealth preservation and growth approaches. We hope the tips above will help you steer your finances in the right direction. And remember, if you’re unsure about moving forward, you can always consult a fiduciary financial advisor as they’re required to hold your best interest as the top priority.

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All performance referenced is historial is no guarantee of future results. All indices are unmanaged and may not be invested into directly.

Asset Management vs. Wealth Management and the Advantages of Holistic Financial Planning

Posted on August 23, 2021 by RFTB Dev

Financial planning is essential for everyone, but it is especially vital to those with a high net worth or complex portfolio of assets. Without a comprehensive financial management strategy, you will find that you have fallen well short of your goals when it’s time to ride off into the sunset. If you want to avoid these dangers and maximize your assets, you need a skilled financial advisory firm.

Before you can determine if our firm is right for you, it is important to understand the difference between asset management and wealth management. Below, we outline the unique offerings of each type of management strategy in hopes that it will help you make the best decision for your financial outlook.

What Is Asset Management?

As the name implies, asset management is a process involving your assets. Primarily, asset management strategies are focused on your investable funds. This may include bonds, stocks, mutual funds, ETFs, and any other investment that can be used to grow your wealth.

During a consultation, an asset manager will work with you to determine what investments best suit your goals. They will also help you determine how risky or conservative to be with your assets.

An asset management team will further assist you with asset allocation, which is the action or process of dividing your investable assets. The firm will help you determine what percentage of your funds should be allocated to each type of investment.

Products like stocks provide a huge opportunity for growth but also carry a higher risk. On the other hand, bonds provide a fixed return rate, but they will not create a rapid growth of assets.

Most asset management firms will charge a percentage based on the amount of your assets they oversee. Typically, rates decrease as the amount of funds they manage increases.

What Is Wealth Management?

As mentioned above, asset management is primarily focused on investments and growth. Wealth management is considered a more comprehensive solution as it addresses multiple facets of asset oversight.

Wealth management firms seek to maximize the wealth of a family or individual while also protecting that wealth in the long term. Wealth management services may include:

Education planning
Legacy/Estate planning
Tax preparation
Insurance
Charitable acts/donations
Retirement planning
Investments

Like asset managers, wealth management advisors are usually paid a percentage of the funds they’re entrusted with. However, there are some instances where a wealth management advisor may charge a flat rate.

Looking for a financial planner to help you determine your best next step. Schedule a meeting with one of our dedicated advisors today.

Holistic Financial Planning

Wealth management is sometimes referred to as holistic financial planning. According to the dictionary by Merriam-Webster, holistic means “relating to or concerned with wholes or with complete systems rather than with the analysis of, treatment of, or dissection into parts.”

Asset management teams isolate your liquid funds and work to grow your wealth through investments. They address only a narrow portion of your financial portfolio.

On the other hand, wealth management firms view your wealth as a series of interconnected parts that form a greater system. To put things simply, we understand that your wealth is only as secure as its weakest link.

By taking a holistic approach, wealth management firms can ensure that you increase your wealth now without compromising your long-term goals. Through a variety of protocols, strategies, and insurance policies, we will ensure that your funds last a lifetime.

The Importance of Financial Planning

Financial planning is essential if you want to enjoy your assets now while still leaving enough for the future. You spent your entire life building wealth and achieving financial success. Taking a holistic approach to financial planning ensures that your lifetime of hard work and dedication was not for naught. The benefits of financial planning include:

Improved Cash Flow

Partnering with a skilled financial advising firm can help you gain a better understanding of your assets. In turn, you will improve cash flow by creating better spending patterns and eliminating unnecessary expenses. Careful budgeting and stringent tax planning will help you get the most out of your cash.

Long-Term Security

In addition to individual retirement planning, you may want to guarantee your family’s long-term security. A financial planner can help you allocate funds and manage investments. You can add an extra layer of security with proper insurance policies, which will give your family peace of mind to handle anything life throws at them.

Higher Quality of Life

Retirement is a time to enjoy your lifelong pattern of hard work and business-savvy money moves. A financial planner can ensure that you are able to get the most out of your golden years and have plenty of funds left over for your loved ones. This can be accomplished through annuity plans, insurance, and wise investment strategies.

Investments

Wise investment strategies are a great way to accomplish your short- and long-term goals. A wealth management firm can help you make the right investment choices to maximize your assets. With their guidance, you can find the right investments to suit your needs, risk tolerance, and timetable for returns.

Better Financial Understanding

The right financial advising firm will help you identify measurable goals and the effects of each investment decision. In turn, you will gain a more complete understanding of your individual financial situation and thus be better equipped to leverage your assets to achieve long-term goals.

In addition, a comprehensive financial planning firm will serve as a one-stop shop for all of your asset management needs. You will no longer need to interact with separate brokers, accountants, or attorneys to manage your portfolio.

You can access all account information with a single sign in. This makes it easier for you and your loved ones to access essential information in the event of an emergency.

Holistic Financial Planning Solutions with BentOak Capital

Are you ready to take control of your financial future? Would you like to partner with an experienced team that can help you manage your wealth?

Financial Advisor in Fort Worth

Acquired in 2017, our Fort Worth office is located at 5000 Overton Plaza, Suite 110. Give us a call.

Financial Advisor in Lubbock

If you need a financial advisor in Lubbock, come see us at 611 University Ave., Suite 220. Be sure to call ahead and book an appointment.

Financial Advisor in Weatherford

For years, BentOak Capital has been the premier financial advisor in Weatherford. We have served this community for several decades and are proud to continue that tradition today. We are located at 201 Fort Worth Hwy. Call us!

Partner with BentOak Capital and manage your financial future today!

The Importance of Financial Goals in the Wealth Management Process

Posted on August 23, 2021 by RFTB Dev

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