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June 9, 2020 Guest Author

The Importance of Stress Testing Your Wealth Strategies

When making decisions about your money, it can be smart to know the steps that extremely affluent individuals and families take to grow and protect their significant wealth.

Take stress testing, for example. Stress testing is a process that carefully examines your current wealth planning strategies to assess the likelihood that they’ll deliver the results you expect them to in various environments and situations.

The Super Rich (people with a net worth of $500 million or more) often have stress tests conducted because the tests enable them to make smart decisions, to verify that they likely will get what they want and to confirm they are dealing with the right professionals. They can also be effective at identifying potential big problems–or possible huge mistakes–so changes can be made proactively.

The good news: You don’t have to be outrageously wealthy to benefit from a stress test. In fact, we believe it should be part of most people’s due process when vetting financial plans, products and services. In addition to identifying potential missteps in an existing plan or service, it may be able to deliver some peace of mind to the client when the test confirms that a plan is indeed on track.

Click to read the full June Flash Report.