Portfolio Growth in a Lower-Growth, Lower-Inflation World

If lower growth and inflation rates become the new norm, it will be even more important to find ways to grow your portfolio. For the past few decades, investors have enjoyed high market returns. However, if this trend changes in the future, it wil[...]

As an investor, it is important to be aware of potential changes in the market and to plan accordingly. Lower growth and inflation can have a significant impact on portfolio performance, so it is essential to be proactive in seeking ways to grow your portfolio. This may involve taking on more risk, but if done carefully, it can pay off in the long run.

There is no denying that the past year has been a tough one for everyone.

Today's biggest opportunity lies in creating a financial plan that includes everyone's goals, resources, and circumstances. This will help mom and dad make better financial decisions and potentially grow their portfolio.

1. This exercise is a part of Family Wealth Planning and is fast becoming a staple for “the millionaire next door”. 2. Even if all members of your family want to keep their own personal finances confidential, certain topics of conversation can open the door to more extensive planning down the road. 3. Following are a few planning areas which might enhance your results: 4. Planning for retirement, estate planning, and charitable giving are all important topics to discuss with your family. 5. By engaging in this exercise, you can open the door to more detailed planning and help your family prepare for the future.

  • It is important to be aware of the potential tax implications of savings bonds, as they can have a significant impact on one's financial situation. In the case mentioned above, had the bonds been liquidated or gifted in a lower tax bracket, the family would have saved a significant amount of money in taxes. This highlights the importance of financial planning, as even small changes can make a big difference in the long run.
  • It is important to carefully consider how to structure IRA and annuity payouts in order to minimize taxes and preserve wealth for future generations. With the current tax laws, it may be beneficial to take a quick payout in a lower tax bracket or to spread the withdrawals and taxes across multiple generations. Careful planning can help ensure that the maximum amount of wealth is preserved for the future.

Financial planning is a critical tool for managing your finances and achieving your financial goals. While it is not necessary for everyone to have a comprehensive financial plan, it can be very beneficial in certain situations. If you have a plan for yourself only, a good next step is to consider whether more comprehensive planning in your own situation - or with your parents or children - might be beneficial. If your family isn’t exactly on board, you can begin with what you do know and ask for help from your financial advisor. It may not be as easy to see the tangible benefits like a performance return on your portfolio, but if comprehensive planning helps the money last longer, it certainly very much worth the time and effort!