Setting the Foundation: Your First 90 Days of Wealth Management

Embarking on your wealth management journey can feel daunting, especially in the first year. However, the key to long-term success lies in a strong start. Let’s focus on your first 90 days - a crucial period that sets the foundation for your financial future.

The first step in this journey is a comprehensive wealth assessment. This involves gathering detailed information about your assets, liabilities, income streams, and expenses. It’s not just about knowing how much you have but understanding where it is and how it works for you. This assessment provides a clear starting point and helps identify not only areas for improvement, but any immediate “pain points” that should be addressed sooner than later.

Once you have a clear picture of your financial landscape, it’s time to set SMART goals. These should be Specific, Measurable, Achievable, Relevant, and Time-bound. For instance, instead of a vague goal like “improve my investment portfolio,” set a specific target such as “create an investment strategy appropriate for my goals and begin dollar-cost averaging into investments next month.”

Your 90-day plan might follow this structured timeline:

Weeks 1-4: Discovery, assembly, and analysis of your financial situation

• Gather financial documents (bank statements, investment reports, insurance policies, tax returns, etc.)

• Create a detailed listing of assets and liabilities

• Analyze current income streams and spending patterns

• Review existing insurance policies

• Assess current retirement savings and contributions

• Identify areas of financial concern or opportunity

Weeks 5-8: Development of a detailed plan and strategy

• Define short-term and long-term financial and life goals

• Create a budget aligned with financial objectives

• Develop an investment strategy based on risk tolerance and time horizon

• Formulate a tax optimization strategy

• Design an estate plan

• Establish a debt management plan (if applicable)

Weeks 9-12: Initial implementation and establishment of monitoring procedures

• Open or adjust investment accounts as per the new strategy

• Rebalance existing portfolios to align with the new asset allocation

• Implement budgeting tools or systems

• Begin executing the tax optimization strategy

• Start the process of updating estate planning documents

• Set up automatic savings and/or investment contributions

• Establish a system for tracking progress towards financial goals

• Schedule check-ins with financial advisors or team members

Remember, the goal of these first 90 days is not to resolve all your financial challenges and ambitions, but to lay a solid foundation for long-term success. It’s about gaining clarity, setting direction, and taking those crucial first steps.  

One of the most important aspects of this period is building your financial team. Look for advisors who have experience managing large assets successfully. Professional credentials like Certified Financial Planner (CFP) and Certified Public Accountant/Personal Financial Specialist (CPA/PFS) are good indicators of expertise and commitment.

After your initial 90-day foundation, the next steps in your wealth management journey are equally important.  Here are some key areas to focus on:

• Regular portfolio review and rebalancing

• Ongoing tax strategy refinement

• Estate planning updates

• Retirement planning projections

• Tweaking or even altering plans when necessary or desired

The important thing to remember is that you should take control of your financial future sooner rather than later.  Begin by gathering all your financial information and scheduling a meeting with a wealth management professional. Remember, every day you wait is a missed opportunity for growth and security.

Stay tuned for our next post “Cash Flow Management for Optimizing Long-Term Wealth,” where we examine how to strategically allocate your income. 

Tad Jakes, CFP®, EA, ECA