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Wealth management: How to protect and grow your fortune to guarantee a prosperous future

By LLM Reporters on 13th February 2020

Nothing is ever certain in life, particularly when it comes to the stability of the economy. With factors such as a change in national leadership or, more recently in the UK, Brexit, anything could happen – and, if you’re in a position of wealth, fluctuating markets and low interest rates could mean you may soon find your fortune at risk.

That is, unless you take the right steps to ensure otherwise – because the good news is that with the right strategy in place, you could not only secure your wealth for the future, but continue to grow it too. A few simple precautions will protect you from risk – and combined with a few bold moves, you could soon find yourself considerably better off than you were when you started.

Recent changes around inheritance tax and pension freedom could provide huge benefits in the long-run, but it’s important to start your financial planning now to ensure a great and prosperous future.

So, how can you protect and grow your wealth?

Take out life insurance

First things first. If your main concern is protecting your spouse and children should the worst happen, then take out a good life insurance plan before you do anything else. Doing so will prevent them from facing any financial losses in such a situation, and ensure that they are set up for the future. To get the full lowdown on life insurance, visit Marketreview.com/insurance/life.

The more you invest into one particular type of investment, the greater the risk – so be prepared to invest your wealth in a variety of different ways

Create a financial plan that suits you

In order to grow your wealth so that you can reap the benefits later, some level of investment will be required – so to make sure it all pays off at the right time in your life, you’ll need to have a plan. Set your own goals and decide on a time frame you want to work to – having an investment portfolio that is tailored to your wants and needs is the best way to achieve results that work for you.

Your plan should be centred around the major life events you foresee happening in the future – for example, if you want to ensure you are able to retire early, you’ll want to ensure you have access to your money by a certain age.

Get clear on your stance around risk

Every type of investment poses some level of risk, but some far more than others. Generally speaking, the bigger the risk you are prepared to take, the more you potentially stand to gain – but, if you’re worried by the possibility of facing loss and are more concerned with protection than growth, then it may not be for you.

Hiring a chartered financial planner is the best way to work out your approach. They will help you to determine your risk tolerance, and help you to build up an investment portfolio that suits. By building your risk profile and getting a better understanding of your aims and objectives, they will be able to make recommendations to suit.

Diversify your investments

The more you invest into one particular type of investment, the greater the risk – so be prepared to invest your wealth in a variety of different ways. Diversification will mean that your investments are distributed across a variety of different industries and financial instruments – so, should the worst occur in one area and cause you to make a great loss, you’ll be protected elsewhere. Better yet, it can even increase your overall returns – a wise choice for anyone hoping to protect and grow their wealth long-term.

Financial planning for the future is vital if you want to protect and grow your fortune – but however you hope to invest, it’s worth seeking professional advice to ensure that you are making the right choices

Review your strategy on a regular basis

It’s important to review your strategy on a regular basis and analyse what is and isn’t working for you. Our circumstances and goals can often change over time, so you may wish to make some adjustments along the way to fit in with your evolving plans.

Changes in legislation or tax rules may also give you reason to tweak your tactics, so be sure to always keep abreast of what is happening in the world around you. An annual review will ensure you remain well informed.

The takeaway

Financial planning for the future is vital if you want to protect and grow your fortune – but however you hope to invest, it’s worth seeking professional advice to ensure that you are making the right choices. Executed carefully and logically, you could be reaping some substantial financial benefits in years to come – and you’re guaranteed to thank yourself for all the planning ahead.