3 Things to Consider When Doing Wealth Management12 min read

3 Things to Consider When Doing Wealth Management12 min read

Wealth management can seem like an overwhelming task, but by starting small and focusing on a few key areas, anyone can gain more control over their financial future. 

Whether you’re just getting started or looking to refine your current approach, this intro will outline three important things to consider when doing wealth management through a digital bank like The Kingdom Bank.

How Do I Assess My Financial Goals in Wealth Management?

The first step in any wealth management process is assessing your financial goals. Taking the time to clearly define what you’re working towards will help you stay motivated and keep your strategies aligned. 

Here are a few questions to ask yourself:

• How much money will I need for retirement? Try to estimate your expected living expenses in retirement and how much you’ll need saved to cover them. Account for variables like healthcare costs, inflation rates, changing family situations and more. Knowing this number will help you save and invest effectively.
• What about other large purchases? Do you want to buy a house, pay for your kids’ college, or fund other big-ticket items? Breaking these goals down into realistic timelines and dollar amounts makes wealth management much more manageable.
• What are my priorities? Are you focused on building savings, paying off debt, or leaving an inheritance? Different priorities call for tailored strategies. Get clear on yours before developing a financial plan.
• How can I balance short and long-term goals? Most people have both near-term and distant objectives. Effective wealth management requires balancing priorities like emergency funds, vacations, retirement and beyond.

Taking the time now to thoughtfully define your financial goals will save you wasted effort—and money—down the road. 

Keep revisiting them too, as priorities can shift with life changes. With clearly defined goals in hand, you’ll be ready for the next step.

What Should I Know About Risk Management in Wealth Management?

Once you’ve established your financial objectives, the next important aspect of wealth management is understanding and mitigating risk. 

No investment strategy comes without at least some degree of uncertainty. Assessing your unique ability to withstand volatility is key.

When it comes to risk management, consider these factors:

• Your time horizon. The longer your timeline, the more aggressively you can likely invest while still achieving your goals. Shorter horizons call for lower-risk holdings.
• Your tolerance for loss. Not all investors are wired the same. Understanding how you’ll react to potential dips in the market helps shape your risk profile.
• Diversification. Avoid putting all your eggs in one basket by spreading investments across various asset classes, industries and regions of the world. Rebalancing over time maintains this diversification.
• Your liquidity needs. Only invest money you won’t realistically need to tap for 5+ years. Unexpected expenses require accessible cash reserves.
• Insurance coverage. Do you have adequate insurance policies like disability, health, property and life insurance to safeguard against unavoidable risks?

Proper risk management makes you more likely to stick with a plan through market fluctuations. 

While no one can eliminate uncertainty altogether, a digital bank like The Kingdom Bank can help you develop risk-appropriate portfolios and strategies. Staying disciplined to your goals and tolerance for risk is key.

What are the Factors About Wealth Management in Digital Banking?

When pursuing wealth management, find an institutional partner that eliminates friction across three aspects:

• Access – Do they offer investment options and tools without borders? The Kingdom Bank provides services worldwide through its digital banking platform.
• Cost – What are the fees? Digital baking often undercuts fees of traditional wealth managers. The Kingdom Bank maintains low, transparent pricing.
• Experience – What is the depth of investment expertise and resources available? The Kingdom Bank advisors have extensive experience advising global clients on complex portfolios.

Wealth management is a marathon, not a sprint. Ensure your partner can grow with you for decades. Consider if they offer personalized financial planning and guidance over time. 

At The Kingdom Bank, clients receive ongoing portfolio reviews according to life milestones and market changes. A long-term partnership helps optimize wealth outcomes through changing seasons.

How to Do Wealth Management in Digital Banking Remotely?

Thanks to technological advances, you no longer need to visit a brick-and-mortar bank branch to manage investments. 

Digital banking platforms empower convenient wealth management from anywhere via computer or mobile app. 

Here are some tips for effectively handling your finances remotely:

• Automate savings. Set up recurring transfers from checking into investment and savings accounts to effortlessly grow your nest egg overtime.
• Use budgeting tools. Track spending across all accounts in one place to stay on top of cash flow and watch for savings opportunities.
• Research investments. Robust education centers and screeners streamline researching stocks, funds, currencies and more to populate diversified portfolios.
• Rebalance as needed. Set automatic calendar reminders or triggers to sell high and buy low to maintain your target asset allocation over the long haul.
• Monitor performance. Dashboard overviews keep tabs on individual and portfolio-wide returns to evaluate progress toward objectives.
• Access professional help. Message with qualified advisors through online chat for guidance tailored to your unique circumstances.

With the right digital banking partner like The Kingdom Bank, all essential aspects of wealth management are just a few clicks away right from your couch. Mobile convenience frees you to focus on broader financial wellness.

Wealth Management in Digital Banking for Beginners

For those taking their first steps into the world of wealth management, starting with a digital banking option provides an accessible and low-pressure introduction. 

Wondering where to begin? Here are some initial tips for digital banking newbies:

• Familiarize yourself with basic budgeting and spending tracking within the app to get control of monthly cash flow.
• Open a savings account in addition to checking and set up automatic monthly transfers the moment money hits your account. Even small amounts add up over the long run.
• Research short primer courses through the bank’s financial education center to gain fundamental investing knowledge at your own pace.
• Consider opening a cash management account to stash emergency savings in a low-risk interest-earning option while learning.
• Speak to a licensed banking professional through the app’s messaging tool for guidance on next steps tailored to your personal goals and timeline.
• Start small with investments you understand, like index funds or ETFs that track entire market segments. Focus on the long run, not short-term fluctuations.
• Revisit your finances monthly through your account dashboard to monitor progress and make adjustments as skills and confidence increase.

With its ease and lack of intimidating branch visits or minimum balance requirements, digital banking provides an inviting entry point into smarter money management habits. Small steady actions lead to big results over time.

Whether just starting out or a seasoned pro, The Kingdom Bank’s full-service digital banking platform enables convenient and professional wealth management from anywhere. 

Tools for budgeting, cash management, investment research, guidance from professionals and more simplify taking control of your financial future through a streamlined online experience. Get started at The Kingdom Bank today.