Why Wealth Management Goals Change With Time

18 March 2021
 Categories: , Blog


The idea that wealth management goals change with time is an intuitive one. Life changes along with the world, and it's important to recalibrate your wealth management planning efforts. It's wise, however, to understand why these changes might happen. A wealth management advisor may encourage changes under these four circumstances.

Approaching Retirement

The biggest reason for you to recalibrate is when you start to approach retirement. Broadly speaking, most folks will want to de-risk their portfolios as they come closer to retirement age. First, this ensures that their wealth won't be rocked by major shifts in the economy or personal fortunes. Second, it aligns with the general notion of retirement in the sense that you probably won't want to track so many financial concerns. Finally, many people want to prepare their wealth for legacy purposes, such as setting up foundations or funding charities.

In each of those three scenarios, the goal is to minimize potential risk. No one wants to see surprises long after they've won the game.

New Job

A shift in employment often means a shift in wealth management possibilities. If you've obtained a better-paying role in a company, you might want to take advantage of the newfound income to accelerate the development of your wealth. Similarly, someone who has scaled back their work may need to focus on stability rather than explosive growth.

Economic Changes

The economy is a cycle of creation and destruction, and it's fortunate that it creates more than it destroys. However, that only holds in the long run. In the short run, the economy can lay waste to the best of wealth management planning work. You need to be prepared for recessions and even industry-specific slowdowns during good times.

Notably, you'll also want to think about positive changes. As new asset classes emerge, a wealth management advisor can help you consider how they might fit into your portfolio. For example, you may wonder how to incorporate cryptocurrencies or alternative energy into your outlook. It's best to seek an independent perspective before taking such leaps into new frontiers.


Few things prompt perspective in wealth management planning as much as family does. The addition of a child is a blessing, but it also calls on you to prepare for the little one's future. Similar moments occur when your kids graduate school and move into their own lives. Adverse events, such as divorce, also have to factor into your approach to wealth management.

Reach out to a professional who provides wealth management services to get started.