Financial pressure or stress has become a part of the daily lives of many consumers, and now the COVID-19 outbreak has introduced even more financial pressure points or exacerbated pre-existing ones for individuals and families across the globe.
John Smallwood, president at Smallwood Wealth Management (and author of It’s Your Wealth – Keep It: The Definitive Guide to Growing, Protecting, Enjoying, and Passing On Your Wealth), notes that navigating these pressures and developing an effective financial strategy requires that we first figure out where these pressures are coming from.
“Once you’ve identified financial pressures, you can decide what steps you will take to mitigate or reduce that pressure now and in the future. But if you don’t take any steps, you may end up repeating the mistakes of the past and never reach your financial goals.”
Smallwood, which offers a “big picture” approach to wealth management that evaluates all aspects of a client’s profile, notes that everyone’s financial circumstances are unique.
The company uses a collaborative approach to help clients with organizing their financial assets and developing appropriate money management strategies. This helps them with understanding how financial pressure can affect their wealth management strategies while also helping them realize the potential of their wealth.
Smallwood helps its clients with creating effective financial strategies that aim to reduce risk, reduce tax liabilities, and allow them to accumulate more wealth – while enhancing their retirement and passive income.
“Major lifetime events such as the pandemic and the financial crisis of 2007-2008 can result in big financial setbacks for people and their portfolios for years thereafter. But identifying financial pressure points allows you to capture unique dynamics and elements of your financial life and form the building blocks of a wealth plan.”
Most people have less than $50,000 in savings in their bank accounts, Smallwood reveals. However, he clarifies that people might have more funds in qualified and nonqualified assets.
He points out:
“Where most balance sheets fall down is by looking only at income. You also want to look at all of the liabilities and future liabilities, and how assets and interests will determine income and cover your obligations in the future.”
Wealth technology or wealthtech is a high-potential Fintech market segment. However, a recent report revealed that Asian relationship managers don’t have the appropriate tools or time to improve the client or customer experience.
Earlier this year, Martin Stadler, the CEO at wealth management Fintech Altoo, argued that it’s important to work with incumbents to offer quality financial services.
In March 2020, a report revealed that wealth managers had rated their process of creating and sharing investment advice as poor to average.