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The 'Perfect Cocktail' Strategy Used by Wealthy Investors

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What is it about your favorite cocktail that makes it perfect for you?

You could sit down at the bar and order the same thing as the person sitting next to you.

But you don’t.

You order the drink that fits your specific taste. Your mood.

The distinct aromas, perfect temperature, and hand-selected ingredients have been meticulously engineered to please your taste buds.

And you’ve likely tweaked it here and there over the course of your life as your tastes have changed.

You can certainly find plenty of financial information online, but how much of it applies to your particular situation?

Plain vanilla solutions might work for those with less complex needs. However, you’re at the point where you need more advanced strategies.

And you’re pretty sure that professionals working with immensely wealthy investors aren’t telling them to skip avocado toast and coffee shop lattes just to save a few pennies.

Now is the time to discover the ingredients you’ll need and the tools that will allow you to craft a personalized strategy to manage your wealth as effectively as possible.

If you’re not sure where to find the right techniques for your bespoke portfolio, you’re in the right place.

This pivotal guide is your ticket to the financial strategy that serves your needs now and in the future, by providing you with the same tools that ultra-high-net-worth (UHNW) investors know and use.

Discover the required ingredients and how to mix them for the optimal result for you and your family.

Right now, you may be asking yourself questions like:

  • Is my current strategy missing anything that would help me optimize what I’ve already accumulated?
  • What opportunities are right around the corner?
  • Am I protecting against the most likely risks?
  • What happens if I don’t make the right decisions in time?
  • Do I have a trusted resource to review all I’ve done so far and give me constructive feedback?

If any of these questions resonate with you, keep reading...


INGREDIENT #1 Minimizing Taxes (As Much As Possible)

While it’s true that paying taxes is one of the two sure things in this world, the amount that you’re legally required to send to Uncle Sam isn’t set in stone. Taking steps to potentially lower your exposure to high marginal tax rates is key to keeping more of your money working for you.

Maximizing your tax-deferred savings is one technique to potentially help reduce your taxable income now. Your retirement plan is fundamental to your financial success, especially an employer-sponsored plan that allows you to sock away tax-deferred savings.

Another strategy used by savvy investors is changing the nature of their income to capital gains wherever possible. Long-term capital gains tax rates have historically been lower than income tax rates.1

Investors with complex compensation arrangements can also potentially benefit from deferring compensation to future years, allowing them to control the tax consequences.

Tax-smart asset allocation can also help reduce your tax liability by putting the right investments in the right taxable, tax-deferred, and tax-free “buckets”.

Fundamental tax minimization questions to ask include:

  • Does my compensation package provide more benefits that could help me lower my taxes?
  • Have I explored all the options available to me for reducing my tax exposure?
  • Am I aware of all the tax consequences of the investment choices I make?
  • Have I asked for an objective view of my total tax picture from a professional?


INGREDIENT #2 Crafting Your Health Care Elixir

One of the most expensive puzzles in retirement is paying for health care. Unfortunately these costs have been on the rise faster than average inflation for years.2

Ensuring that unexpected health issues don’t undermine your financial strategy is another key ingredient to a successful financial strategy.

It’s important to understand what Medicare pays for once you’re 65, and how it coordinates with your current employer’s coverage. Assuming, of course, that you still have access to that coverage at retirement.

How will you pay for the things that Medicare doesn’t cover, such as long-term care, dental, and vision? Will you self-insure or seek out supplemental coverage?

However, when it comes to long-term care when you can’t feed or dress yourself, you’re on your own to fund it under current laws. Advanced health care strategies such as long-term care insurance could help cover costs if you have a family history of needing care or you’re concerned about out-of-pocket costs.

Fundamental questions to ask about your health care needs include:

  • What kind of health care coverage will I have in my senior years?
  • Do I understand all the options for funding my health care needs in retirement?
  • Am I likely to need long-term care in the future, and if so, how will I pay for it?
  • Have I discussed the rising costs of health care and how to account for them with a professional?


INGREDIENT #3 Properly Positioning Your Portfolio

In the old days, investors could rely on interest income in retirement. The old adage that retirees lived by was “Never touch the principal.”

Unfortunately, while double-digit interest rates provide a healthy income, today’s lower rates may not. Especially when combined with longer, healthier lifespans.

That makes a modern portfolio strategy that’s allocated the right way more important than ever. It needs to give you enough growth to fight back against inflation while not taking on too much risk in uncertain markets.

If your net worth is at least $1 million (not including the value of your home), you may be missing out on more advanced strategies available to you.

The details of your personal situation make a big difference, so asking the right questions and getting professional advice is critical to making the most of potential opportunities.

Fundamental questions to ask about your portfolio include:

  • Do I understand the risks my portfolio faces now and in the near term?
  • Have I found a balance between my needs now and in the future?
  • Am I keeping an eye on the serious risks that could hurt my portfolio?
  • Am I taking advantage of all the opportunities available to me as an investor?
  • Have I consulted a financial professional on whether my portfolio has the right mix of assets?


INGREDIENT #4 Objectively Handling Your Whole Portfolio

Once you start amassing significant assets, the money is often held by more than one manager. If you have a 401(k) or similar retirement account, it’s typically managed alongside everyone else in the company, regardless of your personal needs.

In addition, you might have retirement plans from previous employers and individual retirement accounts, plus a taxable investment account or two.

Spreading your investments across a variety of managers and institutions doesn’t always benefit you as an investor. Each professional sees only their piece of the pie.

Without that global view, conflicting strategies could detract from portfolio value instead of enhancing it. Even if you’re managing your investments yourself.

Are you missing some key strategies or assets that might benefit you? Are you too concentrated in other areas?

A complete and objective perspective tells you when your portfolio is out of balance.

We know that too much ice waters down a cocktail, and investing too much in one asset can dilute the performance of the whole portfolio.

Fundamental questions about your overall strategy include:

  • Do I have the right balance of assets to maximize the return for the amount of risk I’m willing to take?
  • Do I know how much risk I can take?
  • Am I able to view the whole portfolio objectively and determine whether I need to make adjustments?
  • Have I talked to a financial professional about whether my portfolio is greater than the sum of its parts, or something less?


Mixing the Right Blend of Ingredients For Your Personal Portfolio

When your perfect cocktail isn’t mixed correctly, you find the flavor’s off.

Paying attention to the right ingredients in the right quantities is even more important when it comes to your financial future.

If your portfolio isn’t as tax-efficient as it could be, you could be looking at higher taxes now. Even worse, they could be even higher than expected later in life.

Opportunities to potentially reduce taxes may be available to you right now. Missing out on these types of strategies could mean leaving money on the table.

With the current size of your portfolio, cookie-cutter solutions just don’t cut it. You need a personalized strategy that considers all the facts of your particular financial situation and blends it with the tools that will help you secure your financial future.

The sooner you dig into these ingredients and techniques, the sooner you’ll be able to create a strategy that’s just right for you and your family. Making smart decisions before it’s too late is critical.

We have the experience to help you craft the ultimate strategy. Book your complimentary “Personal Cocktail” Strategy Session now and begin crafting the sustainable portfolio you need.

We’ll identify any gaps you might have in your strategy, as well as leverage potentially uncovered opportunities. We are professionals in personalizing solutions for accomplished people like you.

We’ll take your unknowns and help you hedge against the risks you face, whether they’re obvious to you right now or not.

You’ve already taken a smart step by reading through this guide. Take the next one and schedule your private “Perfect Cocktail” Strategy Session with us today.




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