Texan capital management is an accounting strategy that strives to maintain sufficient and equal levels of working capital, current assets, and current liabilities in Texan.
Texans are well-known for their independent-mindedness and self-reliance. These are admirable qualities in any community the world over, let alone the United States. Having said that, seeking professional advice when it comes to your finances should not be overlooked. You wouldn’t service your own car unless you happened to be a mechanic. Nor would you prescribe your own treatment unless you happened to be a doctor.
So, why would you plan for one of the most important things in your life – your future financial security – without seeking a second opinion, much like you would with a doctor? If you want long-term growth within your risk tolerance, then the benefit of wealth planning with a financial advisor cannot be overstated.
What Is Wealth Planning in Texas?
In short, Texan capital management comes down to taking a holistic view of your current financial position and (potentially) making any changes that might improve your chances for success. This means all of your assets, including your liquid capital. Any property you own, real or otherwise, any money across your investment accounts, IRA’s, 401k’s and pensions and both household incomes of you and your spouse need to be considered. Far too often, we focus on just one or two areas of their finances to meet their future needs, such as their 401k or perhaps, if they’re business owners, the value of their business is seen as their retirement nest egg.
Planning wealth properly is a much more detailed process but one that allows you to relax, safe in the knowledge that all of your investments are working towards your goals and that can, should, and will most likely, be tweaked as you move through life. That is why it is so advantageous to have professional help with the planning. Not only does it mean you get an experienced advisor to help you on your journey – it takes the day-to-day hassles of managing it, out of the process.
When Should I Plan My Wealth?
From San Antonio to Dallas and from Houston to El Paso, Texans have many of the same priorities in life. They intend to work hard, often, to play hard, and to enjoy a retirement on their own terms. As such, wealth planning should be something that is undertaken as early in your career as possible. Your employer-provided 401k plan is a great place to start but you shouldn’t rely on that alone.
Life happens – having as many (potential) income-streams as possible allows for the vagaries of life. What if stocks fall (they will)? What if you change jobs (you probably will…more than once)? What about figuring out when you might be able to retire – the sooner the better, right? Right? All of these questions can be answered when you plan your wealth properly. Of course, Texan capital management can help anybody – you don’t need to be at the start of your career. Indeed, even retirees can benefit from having a second (or a third) look at their already existing plan.
