Wealth Management

Abstract

For both wealth managers and investors, a disconnect can result over time as to how the performance of a wealth plan meets the client's short-, mid-, and long-term needs. Failing to fund these needs can create life-changing consequences that may not appear for years into the future, until it is often too late to change course. The use of the structural principles of a balance sheet enables wealth planning to proceed methodically and efficiently by matching pro-forma after-tax cash flows across various time horizons. The sequential matching of cash flows drives a number of different insights into portfolio management tactics, such as need hierarchies, asset allocation, and rebalancing.