When you purchased or built your home, what did you consider? Certainly the price, probably the neighborhood. You considered whether its size could accommodate your family or future family. You looked at school district zoning and thought through how long you planned to live there. If you had kids, you may have given them input. I would wager that you and your spouse had many late night conversations throughout the whole process. And most importantly, you evaluated every decision concerning the home through the lens of its intended purpose: A starter home for your growing family, a retirement home, or perhaps a spacious place for entertaining.
Suffice it to say, you looked beyond the cost of the home and the potential return on your investment.
And yet, when it comes to making decisions about all the other assets in a financial portfolio, many clients and advisors focus solely on cost, risk, and return and neglect to envision and consider the purpose behind the wealth and how it will impact those connected to it.
At Archetype, we believe your money impacts four key areas. Your investments and strategy certainly matter, and we encourage our clients to have an investment philosophy and sound strategy in place. But we also recognize that our clients’ wealth affects their family and their legacy. Failing to acknowledge this would mean failing to address the many relational risks – and rewards – associated with our clients’ financial portfolios.
Whether you plan to leave a lot or a little, your money will likely outlive you. The question then becomes: What is the purpose for your wealth? And what impact will it have long after you are gone?
I will expand on why knowing the answer to those two questions is critical to your planning process. Read more.
Sarah Bradley serves as a wealth advisor for Archetype Wealth Partners in Houston, TX. Sarah is a graduate of Texas A&M and a Certified Public Accountant. She worked for three years at PricewaterhouseCoopers before joining the Archetype team. Archetype exists to help families thrive across generations.
Disclaimer: Our intent in providing this material is purely for informational purposes, as of the date hereof, and may be subject to change without notice. This article does not intend to constitute accounting, legal, tax, or other professional advice. Visitors and readers should not act upon the content or information found here without first seeking appropriate advice from a trusted accountant, financial planner, lawyer or other professional.
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