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Getting to Know Your Assets: Long-Term Wealth Management Strategies

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There are a number of stories about celebrities such as Mike Tyson and Nicholas Cage who lost the bulk of their wealth due to poor financial planning. Properly managing wealth is not as easy as it sounds; it takes time, energy and focus to keep your assets growing. One of the ways in which you can maintain your wealth and grow your fortune through good money management is by investing in fixed-income securities that offer a consistent income stream and will keep money flowing in your portfolio.

Which Stocks and Investments to Go After

Large-cap blue chip stocks that have a history of increasing their dividend payouts year after year should be a part of your investment portfolio. Dividend stocks enable you to generate income through distributions and protect your capital by taking minimal risks. Large-cap stocks are much less risky than small and mid-cap stocks because of their huge revenue streams and large amounts of assets. Companies such as Proctor & Gamble and Walmart, with large cash hoards, are safe investments that pay consistent dividends.

What About Bonds?

Bonds can be another quality source of income for investors pursuing a sound wealth management strategy. There are a number of different types of bond offerings – corporate bonds, Treasury bonds, municipal bonds – that offer the combination of safety and passive income. Corporate bonds are attractive to investors because they pay higher yields than most bond classes. Municipal bonds are a hit with the wealthy because of their tax-free status. Treasuries are perfect for the conservative investor looking for a guaranteed return of principal and a little interest to boot.

The Role of the Stock Market in Wealth Management Strategies

The stock market has another place where an investor can look for consistent distributions and preservation of capital. Preferred stocks are hybrid investments that offer investors the benefits of both a stock and a bond. Preferred stocks typically pay higher yields than common stock and have priority over common stock when it comes to receiving income. The fixed dividend component makes preferred stocks attractive to investors that want to receive income and have a shot at growing their investment. That is why choosing preferred stocks is common money management advice.

Remember that asset protection is equally as important as asset growth when you are taking a comprehensive approach to wealth management. Seek the help of a financial planner and a lawyer so that you can find the most tax-efficient manner to grow your investments and ensure that you are engaging in the best wealth management strategies. A smart wealth-management strategy will have the focus of protecting your assets, maximizing your assets and helping them to grow so that you can pass them to future generations.

Mark Riddix started writing in 2007 and has been writing online since 2008. Mark has written for Forbes, Investopedia, New York Daily News, Google Finance and Yahoo Finance. He holds a bachelor's degree in finance from Oral Roberts University.


The above article is intended to provide generalized financial information designed to educate a broad segment of the public; it does not give personalized tax, investment, legal or other business and professional advice. Before taking any action, you should always seek the assistance of a professional who knows your particular situation for advice on your taxes, your investments, the law or any other business and professional matters that affect you and/or your business.

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