Webb: Two allies of wealth accumulation

Posted: Monday, April 28, 2014 6:30 am

Webb: Two allies of wealth accumulation

Chris Webb


Just as taxes and inflation are enemies to wealth accumulation, asset management and risk management are two allies of wealth accumulation. They are the beginning stages of a well-developed plan for retirement.

Risk management addresses the opportunities of providing coverage against the uncontrollable possibilities of financial loss. Some events can be expected and planned for if your financial consultant is thorough. The only area of uncertainty for some of these contingencies is when it will happen, not if it will happen. Since we neither have control over when or if an unexpected contingency will occur, risk management is a critical component of the financial planning process.

Risk Management includes

 » Life insurance

= Immediate need: funeral expenses

= Long-term need: debt retirement, income replacement, college tuition, retirement income for surviving spouse, legacy to children and grandchildren, charitable gifting.

 » Disability Insurance or sufficient savings

= Income replacement

 » Health Insurance

 » Long-term care insurance

Asset management addresses the concerns of wealth accumulation and diversity as well as distribution of income at retirement. Accumulating a sufficient nest egg to be able to retire at an appropriate age can be complicated but manageable. It takes a lot of intelligent people working behind the scenes to make your money work for you.

What is the most important asset that you have as an investor? It is your ability to earn income. Financial independence takes your ability to earn a living for immediate income now and your drive and determination to live on a budget to make sure you will have enough to live on when you retire.

If you have a 401K or other retirement plan through your employer, you cannot assume that your 401K and or pension plan will be enough. You must take the initiative to analyze any plan you already have in place to make sure that it is appropriately funded and that it is appropriately diversified.

Asset Management Includes

 » Asset Accumulation

= Building a nest egg

 » Asset Diversification

= Stocks and Bonds are not the only option for diversification in today’s market place

 » Asset Strategies

= What solutions do you need that will suitable for you both now and in the future?

Enemies and Allies; it sounds like a medieval strategy game. It isn’t. It is your financial future that is ultimately in your hands. Know your enemy. Support your allies.

Invest well. Live well.

Chris Webb is a Registered Representative and Financial Consultant with Newsome Financial Group, LLC in Phenix City. Questions or comments can directed to chris.webb@pesmail.com. You can visit www.newsomefinancial.com, or call Chris directly at 334-298-9000.


Monday, April 28, 2014 6:30 am.

Open all references in tabs: [1 – 3]


Monday, April 28th, 2014 EN

No comments yet.

Leave a comment

You must be logged in to post a comment.