Wealth Building And Personal Asset Management Essay

Wealth Building And Personal Asset Management Essay

Length: 758 words (2.2 double-spaced pages)

Rating: Better Essays

Open Document

Essay Preview

Wealth Building and Personal Asset Management: Balance Your Money in a Right Way

Finance is the most important asset in anyone 's life. The lack of adequate financial planning may results in insecure life. Wealth Building and assets management ensures a secure life without any financial crunches and problems. Personal asset management ensures the growth of wealth in the right direction by implementing an investment strategy that aims at balancing the risk in terms of rewards in accordance with the investor’s financial goals, risk tolerance and investment time frame. There are basically three assets classes i.e. equity, fixed income and cash or cash equivalents that behave differently over time in respect of risk and return.

The key considerations while building a portfolio shall be:

1 Investment goals: One need to consider his or his family’s goals and the money that will be needed to achieve these goals. The goal could be saving for your child 's education, buying a new house or a regular pension after retirement.

2 Investment time frames: The time for which one wants to stay invested has an impact on the risk that one can take. Investors with a longer time horizon may feel comfortable taking on riskier or more volatile investments. Those with a shorter time horizon may prefer to take on less risk. Also, if one needs to withdraw money relatively soon, he may consider having a higher percentage of your investments in cash than investing in equity or fixed income securities

3 Your risk tolerance (attitude to risk and reward): Risk tolerance can be defined as the extent to which the investor is willing to lose a part or whole of his original investment in consideration of higher returns. Balancing the risk one is willing to...


... middle of paper ...


...cation by using the switch option provided by the insurer, and move your funds within the options your fund provides, various proportions of - fully equity, fully debt or a combination of both without any tax implications as per the market volatility.
For instance, if you foresee a dip in the stock market, you should switch a large portion of your investment to debt/liquid funds, and switch them back to equity once the market picks up again
Similarly, as your policy moves towards maturity or when you are approaching a milestone in life where finances are required, such as child 's education or daughter 's marriage, you should move a maximum portion or the required amount of your investment at the appropriate time(s) to debt/liquid funds. This will ensure that a large corpus of the investment is secure and guarantees good returns at the time of maturity or withdrawal.

Need Writing Help?

Get feedback on grammar, clarity, concision and logic instantly.

Check your paper »

Essay Wealth Management in the U.K.

- Introduction This report covers several topic areas in wealth management such as what it seeks to achieve, how a wealth management firm is authorised, who may use this service, the alternative options for a client and the macro-economic environment and legislative influences. Wealth management Wealth management is a practice that best describes the combination of personal investment management, finance advice, and financial planning for the benefit of high-net-worth clients. Robert J. McCann, former President of Global Wealth Management at Merrill Lynch was quoted describing wealth management addressing “every aspect of a client’s financial life in a consultative and highly individualised ma...   [tags: Wealth Management Services]

Better Essays
2370 words (6.8 pages)

The Msc Investment & Wealth Management At Imperial Business School Essay

- My decision to apply for the MSc Investment & Wealth Management at Imperial Business School is one that arose after a judicious process where I questioned my career aspirations. The strong interest in financial markets and its dynamic has matured during my undergraduate studies and my internships at MOMentum Alternative Investments SA. A deep and precise comprehension of the investment banking world in its dynamic context can be an essential force to successfully balance risk and reward. I am conscious that the knowledge gained at Royal Holloway lacks of understanding fully the financial market and therefore the ability to successfully analyse performance and design a strategy....   [tags: Investment, Management, Financial services]

Better Essays
725 words (2.1 pages)

Risk Management : Risks Management Essay

- Thank you. Hello everyone, my name is Liam Varley. Today I will be talking to you about Risk management and how this could relate to you when you leave school. So firstly, what is ‘Risk Management’. Well, it can be defined as “an action by a person to set risk at a level acceptable to that person in relation to personal finance.”1 How does this relate to you, you may ask. Well if you were working and you suddenly fell ill or became injured, it could prevent you from earning an income. I mean, how would you be able to pay for your rent, loan and other general expenses....   [tags: Insurance, Risk, Money, Pension]

Better Essays
924 words (2.6 pages)

Essay on The Appropriate Goal For A Firm

- Mini Case Jorge Alfredo Corella de Cima FIN-317 February 2, 2016 Paul Hubble The appropriate goal for a firm is to maximize shareholders’ wealth or creating value for the firm owners (shareholders). Therefore, the financial manager’s goal is to generate wealth for the shareholders, through making decisions that will exploit the current common stock prices. This is because it not only directly benefits the company shareholders, but also offers benefits to the society given that scarce resources are put to their best use by entities competing to generate wealth (Keown, Martin, and Petty, 2011)....   [tags: Finance, Corporation, Partnership, Asset]

Better Essays
722 words (2.1 pages)

Essay on Capital Analysis : Bmo Capital Trust

- BMO Capital Trust The company which I chose is BMO Capital Trust. The BMO Capital is a member of the BMO Financial Group. The trust is a close-ended trust established under the law of the province of Ontario. The company is a subsidiary of Bank of Montreal. The BMO Trust Capital was incorporated in 2000. The company’s headquarters is based in Toronto, ON. The BMO Financial Group is one of the leading financial services provider in Canada. It has total assets worth US$513 billion and above 45,000 employees as of October 31, 2016....   [tags: Finance, Asset, Balance sheet, Bank of Montreal]

Better Essays
756 words (2.2 pages)

Effective Digital Asset Management Essay

- Introduction “According to Forrester Research, American workers spend $404 billion annually, or 11% of all U.S. wages, looking for the information they need to do their jobs. Giving employees the right tools to stay afloat in a data and knowledge-driven workplace is imperative across the board.”[1] With the world of digital data growing exponentially year on year, the above quote could just represent a mere drop in the ocean when accounting for the time workers spend looking for information....   [tags: Digital Asset Management]

Better Essays
2896 words (8.3 pages)

Fürst Wallerstein’s Approach to Talent Management Essays

- ... Through the low unemployment rate and strong competitors, Fürst Wallerstein attempts to train their current talents to keep them motivated and engaged through external training (such as an English course, or skill enhancement course) or mentoring programs (Oettingen-Wallerstein, 2014). Through lateral movement, employees can teach other members their insights, knowledge and experience that lead to higher work quality and increases retention (Castellano, 2014). When entering new markets or developing new real-estate projects, Fürst Wallerstein can decide to hire permanent employees or external consultancy....   [tags: recruitment, market, programs]

Better Essays
907 words (2.6 pages)

Operations Management Essay

- Operations Management Operations management focuses on managing the processes of producing and distributing products and services. Operations activities often include product creation, development, production and distribution. It deals with all operations within the organization. Related activities include managing purchases, inventory control, quality control, storage, logistics and evaluations. The nature of how operations management is carried out in an organization depends very much on the nature of products or services in the organization, for example, retail, manufacturing, wholesale, etc....   [tags: essays research papers]

Better Essays
460 words (1.3 pages)

Leadership, Trustworthiness and Ethical Stewardship Essay

- Given the increase in organizational downsizings, layoffs, asset write-offs and executive bailouts, how important is the trust factor in defining a good leader. Without an established trust relationship a leader is unable to be effective. The problem to be investigated is the value of trustworthiness and ethical stewardship in the construct of the organizational leadership model. This paper shall explore the co-functions of trust and ethical stewardship and its impact on leadership effectiveness....   [tags: Management]

Better Essays
1199 words (3.4 pages)

Inventory Management And Fixed Asset Management Essay

- Inventory Management and Fixed Asset Management – One and the Same. Professional service firms don’t sell products, rather they sell their time and expertise. The common problem is that many smaller firms see the profits generated from their services, but they overlook their losses from poor inventory management and fixed asset management. Even worse, they sometimes manage and track them in the same manner. To make things a bit more complicated, inventory management and fixed asset management are not one and the same....   [tags: Balance sheet, Asset, Inventory, Bookkeeping]

Better Essays
710 words (2 pages)