{"id":24094,"date":"2025-10-27T09:06:53","date_gmt":"2025-10-27T13:06:53","guid":{"rendered":"https:\/\/www.rbcwealthmanagement.com\/en-us\/?p=24094"},"modified":"2025-10-27T09:06:54","modified_gmt":"2025-10-27T13:06:54","slug":"wealth-planning-six-key-areas-of-focus","status":"publish","type":"post","link":"https:\/\/www.rbcwealthmanagement.com\/en-us\/insights\/wealth-planning-six-key-areas-of-focus","title":{"rendered":"Wealth planning: Six key areas of focus"},"content":{"rendered":"\n

When you think about your finances, there are likely a number of factors that make up the overall picture. And, over time, these pieces may change as your life evolves. Whether you\u2019re a recent grad or early in your career, an individual with a busy family household or a longtime professional or business owner, periodic financial check-ins can offer a range of benefits.<\/p>\n\n\n\n

Here are six financial to-dos that can help put you on the right track to achieving your goals.<\/p>\n\n\n\n

1. Assess your financial situation<\/h2>\n\n\n\n

A financial review is a simple way to get a clear overview of your broad financial picture and where you stand today. This type of personal inventory helps establish the foundation of where your life and wealth intersect<\/a>, capturing your current financial situation\u2014income, expenses, assets and liabilities\u2014as well as your expectations, concerns, needs, wants, wishes and overall goals.<\/p>\n\n\n\n

These details will help guide discussions on what strategies or types of planning make sense for you and can point you in the right direction. Completing a financial review annually can show how you\u2019re progressing from year to year or as your situation changes.<\/p>\n\n\n\n

2. Develop a wealth plan and retirement income strategy<\/h2>\n\n\n\n

Once you have a clear understanding of your current financial situation, the next step is to create a roadmap for your near- and long-term future.<\/p>\n\n\n\n

A wealth plan addresses all aspects of your financial life\u2014including your investments, taxes, retirement, insurance, estate and legacy planning\u2014and helps define strategies to manage your wealth and reach your goals.<\/p>\n\n\n\n

\u201cThink of it like a blueprint for your financial life,\u201d says Bobby Lovgren, head of Wealth Planning at RBC Wealth Management\u2013U.S.<\/p>\n\n\n\n

As you near retirement, you\u2019ll also need to develop a strategy for funding the lifestyle you envision once you stop working<\/a>. This involves identifying all your available income sources and determining how to cover your projected expenses in a tax-efficient manner.<\/p>\n\n\n\n

Your financial advisor can use wealth-planning tools to illustrate the potential impacts of different scenarios, such as inflation or longevity.<\/p>\n\n\n\n

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Evaluate your retirement income strategy<\/h4>\n\n\n\n

Are you on track for retirement? Take three minutes today to make sure you\u2019re ready when it comes time to retire.<\/p>\n\n\n\n

\nUse our Retirement Readiness Calculator
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3. Consider strategies for tax efficiency<\/h2>\n\n\n\n

Taxes are a crucial component of wealth planning. Efficient tax management involves understanding tax laws and regulations, utilizing tax-advantaged accounts, and leveraging available deductions, credits and exemptions to reduce tax burdens and maximize potential growth.<\/p>\n\n\n\n

Having a mix of accounts with different tax treatments allows for greater flexibility when managing your taxes in retirement<\/a>, and may even lower your lifetime tax bill, helping to preserve your wealth for future generations.<\/p>\n\n\n\n

Strategies such as tax-loss harvesting, charitable giving and optimizing your investment portfolio may also help reduce tax liabilities. Talk to your tax advisor for guidance specific to your situation.<\/p>\n\n\n\n

4. Use credit effectively<\/h2>\n\n\n\n

Part of managing your finances is maximizing opportunities on both sides of your balance sheet. Credit can be a strategic tool for on-demand liquidity, allowing you to quickly take advantage of investment opportunities that may arise, or providing temporary cash flow for unexpected expenses<\/a>, without having to liquidate other assets. <\/p>\n\n\n\n

\u201cMany high-net-worth and ultra-high-net-worth clients use the full amount of credit available to them to reinvest and diversify their assets, from marketable securities to direct purchases of operating companies,\u201d says Matt Franks, head of Wealth Management Lending at RBC Wealth Management\u2013U.S.<\/p>\n\n\n\n

If you have different sources of debt, consider consolidating them, as this may allow you to access a lower interest rate. If you already have a competitive rate on your debt, is the interest tax-deductible? If not, your financial advisor can help you explore options for restructuring your loan and minimizing interest costs.<\/p>\n\n\n\n

5. Make sure your estate planning documents are current<\/h2>\n\n\n\n

Regardless of age, every adult should have a valid will that dictates how you want your property distributed after your death. Without one, those decisions are determined by state law, which may not reflect your intentions. Along with your will, other essential documents<\/a> include powers of attorney (POAs) for both your financial and medical affairs, a living will and trusts.<\/p>\n\n\n\n

Keeping these documents updated is as important as having them\u2014outdated documents could lead to unintended consequences if circumstances have changed from what was originally recorded.<\/p>\n\n\n\n

It\u2019s a good idea to review these documents every few years or after significant life events, such as:<\/p>\n\n\n\n