As a senior executive in the middle of your earning years, you face a new set of wealth management opportunities and challenges. For one, your compensation is more involved, and represents a larger percentage of your wealth. At this point, it's apt to be a combination of salary, bonuses, restricted stock and gains from exercised options.

Additionally, you face new challenges, such as the risk of concentrated positions, complex tax issues and changes both in your life and in the world. You also have a lot less time to think about them. But addressing these issues may be less involved than it appears. Here are some key steps to ensure tomorrow's security:


Verify That Your Long-Term Goals Still Make Sense

Consider your lifetime spending needs, how much income you'll need for your current and future lifestyle, tomorrow's income sources and expenses, and your objectives for your family and your legacy.


Refine and Consistently Execute Your Wealth Management Plan

Keep an eye on new realities, including market expectations, regulatory changes, tax laws and lifestyle shifts. Births, deaths, divorces and other changes should be reflected in your plan.


Prepare Your Family for the Money

Involve family members in wealth discussions at an early age. By taking the mystery out of the money, you equip your family members for their eventual role in preserving and growing wealth.

“Plans built on yesterday's assumptions about market return or future expenses (i.e., taxes, health care, general living) are destined to fail.”
Lay a strong foundation for your wealth and estate plans
Consider everything when projecting your income and expenses

In addition to your investments, compensation and retirement benefits, be mindful of housing and living expenses, personal care and any future business investments you may make.

Use a total portfolio asset allocation strategy

At this stage of your career, your investments should be coordinated and working together, and your tax and wealth management strategies should be integrated in a single plan.

Understand your actual income

Map out your projected income and expenses, and recalibrate your plans accordingly. Investors often underestimate the impact of inflation and health care costs when calculating future income.

  • This material is provided for illustrative/educational purposes only. This material is not intended to constitute legal, tax, investment or financial advice. Effort has been made to ensure that the material presented herein is accurate at the time of publication. However, this material is not intended to be a full and exhaustive explanation of the law in any area or of all of the tax, investment or financial options available. The information discussed herein may not be applicable to or appropriate for every investor and should be used only after consultation with professionals who have reviewed your specific situation. BNY Mellon Wealth Management conducts business through various operating subsidiaries of The Bank of New York Mellon Corporation. ©2016 The Bank of New York Mellon Corporation. All rights reserved.