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If We Could Only Teach One Financial Lesson

If We Could Only Teach One Financial Lesson

By Wealth Management Solutions 

At Wealth Management Solutions, we understand what it’s like to experience the loss of financial independence due to poor planning. Our founders, Richard and Martin, felt the pain of losing their fathers unexpectedly and having to navigate the financial fallout on their own.

It was a devastating lesson to learn, but because of these experiences, we know the importance of both receiving sound financial advice and taking the steps necessary to actually implement it. That’s why if we could only teach one financial lesson, it would be: Have a budget, a plan, and a strategy.

The Financial Pyramid

The Financial Pyramid is a helpful guide that can be used to work towards the three prongs of this lesson. 

Wealth Protection

The base of the pyramid is wealth protection or liability management. This comes in several forms including both insurance and proper budgeting. The insurance component is rather straightforward. It’s important to have enough insurance to cover your income, health, and liabilities. Protecting yourself and your family from loss of income due to injury or illness and loss of assets due to damage or theft is a critical component of a comprehensive financial plan. 

But wealth protection goes beyond just insurance. It also includes budgeting, tracking expenses, spending at or below your means, and cash-flow management. You can have all the insurance in the world, but without these strategies, you would struggle to keep your financial health in the green and you would not be able to move up the pyramid.

Wealth Accumulation

The next level of the pyramid is wealth accumulation. First, you’ll want to build up enough liquid assets to cover any emergencies that might come up, including job loss, unexpected maintenance or repairs, and short-term health issues. 

Once your immediate financial needs have been met, you can start to plan for the future you wish to pursue. Start by outlining the short-term and long-term financial goals you hope to accomplish and categorize them based on time frame. Once you have a firm idea of what you hope to achieve, you can begin to design a plan to get you there.

Whatever it may be for you and your family, it starts with a solid financial foundation and then a plan.

Strategic Investing

Perhaps the most important aspect of the financial pyramid is strategic investing. Safeguarding your wealth and planning for the future can only go so far without a solid strategy in place. In this case, a comprehensive investment strategy serves as the mechanism by which other financial goals can be accomplished.

Ideally, your investments should be divided based on time horizons that are customized to your goals. Each investment choice should be strategically chosen to make the most of both your time frame and the return required to work towards your goals. 

  1. Short-term investments are those that will be held between 6 months and 3 years. Money saved toward these goals should be in easily accessible accounts.
  2. Intermediate investments will be held between 3-5 years and should utilize intermediate-term asset classes with slightly higher returns. 
  3. Long-term investments are those that will be held for 5+ years. Generally, the best way to invest for these goals is to focus on growth-oriented assets.

Partner With a Professional

Working with a professional is a great way to get started on building a solid financial foundation and planning for the future. Find an advisor that will walk alongside you while you build your wealth and one that has the expertise to advise you on all four cornerstones, including investment management, wealth management, financial planning, and life planning. Be sure to align the advice, planning, strategies, and governance you receive with your tax planning picture, goals, and objectives.

At Wealth Management Solutions, we have both the tools and the experience to guide our clients in their financial journeys. It may be our planning, but it’s your future, and we take pride in walking alongside you as you make the most of it. To learn more about our comprehensive process, schedule a complimentary consultation by contacting us at (949) 475-9700 or info@wms-llc.com.

About Wealth Management Solutions

The story of origin: Wealth Management Solutions was created in 2003, following the personal family tragedies felt by both partners of the firm. First, Richard Riva, the founding partner, lost his father unexpectedly and before any legacy planning was done that could have extended his family’s legacy beyond the fourth generation. Secondly, Martin Lombrano lost his father before plans and strategies were designed to protect his family’s wealth and legacy. Our partners and team members all share similar experiences due to a lack of planning for their families and are committed to our clients not experiencing the loss of their legacies due to a lack of planning. This is why we say: Our Planning; Your Future. 

All investing involves risk, including loss of principal. No strategy assures success or protects against loss.

The opinions voiced in this material are for general information only and are not intended to provide specific investment advice or recommendations for any individual.  

Wealth Management Solutions and LPL Financial do not provide tax advice. Clients should consult with their professional tax advisors regarding their specific situation.



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