One of the unique features associated with being a professional is that much of the value of your vocation comes from you. Your specific abilities, your clients and your ability to work are quite valuable in generating a significant annual cash flow for your efforts. Cash flow each year may be very high but the cost of expenditures for staff, office space, and lifestyle often are in direct competition with the need to accumulate assets beyond your practice.

The Unique Financial Challenge of Professionals

Accumulating equity value in your practice can also be challenging since you are the primary asset, making it difficult to sell the business for a reasonable price when you are ready to retire or reduce your work schedule. When combined, these factors can create significant obstacles as you strive to accumulate personal financial wealth.

Fortunately, there are a plethora of avenues that serve to unite your current status with your long-term financial goals. It’s important during this process to make decisions based on aligning your goals with your current and available resources. In doing so, you can be free to continue doing what you do best – serving your clients and expanding your professional career!

7 Areas of Financial Focus for Professionals

Going through a wealth management process will help you identify alternatives and gain additional knowledge to make the best decisions for yourself and your family. There are several specific areas in which special consideration should be given as you walk your wealth management path:

  • Liability and asset protection
  • Budgeting
  • Retirement planning
  • Liquidating a practice
  • Buy/sell agreements
  • Insurance advice
  • Educational funding

Disclosures

This material represents an assessment of the market environment at a specific point in time and is not intended to be a forecast of future events, or a guarantee of future results. This information should not be relied upon by the reader as research or investment advice.

There are risks involved with investing, including loss of principal. Current and future portfolio holdings are subject to risks as well. International investments may involve risk of capital loss from unfavorable fluctuation in currency values, from differences in generally accepted accounting principles or from economic or political instability in other nations. Narrowly focused investments and smaller companies typically exhibit higher volatility. Bonds and bond funds will decrease in value as interest rates rise. High-yield bonds involve greater risks of default or downgrade and are more volatile than investment-grade securities, due to the speculative nature of their investments.  Emerging markets involve heightened risks related to the same factors as well as increased volatility and lower trading volume. 

Diversification may not protect against market risk. There is no assurance the objectives discussed will be met. Past performance does not guarantee future results. Index returns are for illustrative purposes only and do not represent actual portfolio performance. Index returns do not reflect any management fees, transaction costs or expenses. One cannot invest directly in an index.This material represents an assessment of the market environment at a specific point in time and is not intended to be a forecast of future events, or a guarantee of future results. This information should not be relied upon by the reader as research or investment advice.