Crafting New Jersey’s Retirement Dreams with a CFP®

Retirement dreams are very important. They can include everything from the culmination of everything you’ve worked for to an opportunity to chart an exciting new path you’ve always wanted but couldn’t turn to during your working years.

Whatever your retirement dreams are – or even if you’re in the midst of developing them – it may be crucial to work with a CFP® (Certified Financial Planner) in crafting them. CFPs® are required to know numerous facets of retirement plans to complete the required years of experience and pass high-level examinations demonstrating their financial knowledge. 

At Integra Wealth Management, we are dedicated to working with and educating our clients on how to work toward their retirement dreams and other financial goals. 

Understanding the Needs of High-Net-Worth Individuals in Paramus, NJ

High-net-worth individuals in Paramus, NJ, and elsewhere in NJ have unique financial needs and goals. First, you may have a high level of assets. To appropriately diversify to help avoid undue risk, in our opinion, you may need a sophisticated investment strategy, which may include stocks, bonds, cash instruments, and alternative investments such as commodities, private equity, and precious metals.

Second, your goals can be very wide-ranging. High-net-worth individuals may want a second or third house in retirement to establish a legacy of charitable giving or to pass on their business to the next generation. You may plan to travel extensively or to live abroad for part of the year. The number of goals and potentialities given your high net worth is higher than those with average means.

One of the roles of a New Jersey financial advisor is to address these needs. We consistently start with each individual’s unique goals and dreams to tailor retirement plans for affluent clients.

Wealth Management New Jersey: A Holistic Approach

Integra Wealth Management takes a holistic approach to retirement planning. All aspects of your life and finances factor into it. Once we know your retirement and life goals, we devise plans for all those aspects, including investments, cash management (income and expenses), tax strategies, risk management, and estate planning strategies. 

The result is a comprehensive approach to long-term wealth preservation and growth. Your income and wealth accumulation may have growth potential because of prudent investments. Sophisticated and appropriate tax planning strategies may also result in better-positioned income, as you may not pay any more taxes than necessary. 

Potential risks to your assets or future are managed so they don’t negatively impact wealth accumulation or preservation. An estate plan, such as a Will or trust, will help to ensure that your assets are bequeathed and carried on in the way you want. Powers of attorney, part of estate planning strategies, will help to ensure that someone you trust will be able to manage your finances should you become incapacitated later in life.

Managing Investment Risk for a Confident Retirement

Managing investment risk is one of the ways to a confident retirement. What is investment risk? Simple; it’s the risk of losing money on your retirement investments! If you lose money, you may not be able to retire when you want or in the style you want. 

Fortunately, Integra Wealth Management in New Jersey employs multiple strategies to balance risk and return to mitigate investment risks and preserve optimal retirement outcomes. We also use sophisticated technology to determine your personal risk tolerance.

We believe the first strategy in one type of investment risk, market risk, is to diversify your retirement portfolio by asset class. Many asset classes have a risk-reward profile. In our opinion, stocks, for example, are relatively high risk because equity markets are consistently volatile, with prices rising and falling every day. Portfolios may counter that volatility risk often by seeking to invest in bonds, whose price fluctuations may be less and may offer consistent yield, or cash.

Yet bonds and cash may have a risk-reward profile. Interest rates also fluctuate. Bonds and cash carry inflation risk. The returns on your investments need to be higher than inflation, or you will effectively lose money because your money loses purchasing power over time. When inflation is very high, as has happened during the last several years, asset allocation must be especially vigilant against inflation risk. Stock returns can provide risk mitigation against inflation risk.

We also craft defensive portfolios, emphasizing defensive strategies such as investing in high-dividend paying stocks, blue chips with a history of weathering downturns, and instruments with baskets of stocks, such as exchange-traded funds (ETFs). Baskets of stocks may exhibit less volatility than single stocks on average. Defensive portfolios can be particularly important to help preserve and help accumulate wealth as you move toward retirement.

Finally, we readjust your asset allocation as you approach retirement and in retirement by adjusting the percentages of each asset class and the holdings to a blend that will help preserve your capital. You need to preserve wealth in your portfolios in pre-retirement and retirement so that your financial life is not impacted in the event of down markets.

The CFP® Advantage in Retirement Planning

CFPs® provides multiple advantages in retirement planning. 

We are also held to a higher ethical standard, the fiduciary standard, in advisory relationships. Fiduciaries must put your best interests ahead of their own. Other financial advisors, such as brokers, are held to a different standard. Effectively, that means that a broker can advise you to invest in choices that may benefit them in commissions. Fiduciaries, in advisory relationships, cannot do that: the criteria is we have your best interest in mind.

Realizing Your Retirement Dreams with Integra Wealth Management

Integra Wealth Management caters to the retirement dreams of New Jersey residents by crafting customized retirement strategies based on individual client profiles. We will focus first on your goals, objectives, and dreams. Then, we will develop ways of meeting those financially by combining appropriate returns with effective risk management.

CFPs® at Integra Wealth Management are highly trained and experienced to handle numerous aspects of a financial plan, including crafting a personalized retirement plan. We are committed to helping New Jersey residents work toward their retirement goals. Schedule a complimentary consultation with us to see how we can help you work toward your retirement goals.

Investment Management vs Wealth Management Integra Wealth Management

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly.

All investing involves risk including loss of principal. No strategy assures success or protects against loss. There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk.

Bonds are subject to market and interest rate risk if sold prior to maturity. Bond values will decline as interest rates rise and bonds are subject to availability and change in price.

Investing in stock includes numerous specific risks including: the fluctuation of dividend, loss of principal and potential illiquidity of the investment in a falling market.

Alternative investments may not be suitable for all investors and should be considered as an investment for the risk capital portion of the investor’s portfolio. The strategies employed in the management of alternative investments may accelerate the velocity of potential losses.

The fast price swings in commodities will result in significant volatility in an investor’s holdings. Commodities include increased risks, such as political, economic, and currency instability, and may not be suitable for all investors.​

Precious metal investing involves greater fluctuation and potential for losses.

There is no guarantee that the Business Development Company (BDC) will achieve its investment objectives. Investing in private equity and private debt is subject to significant risks and may not be suitable for all investors. These risks may include limited operating history, uncertain distributions, inconsistent valuation of the portfolio, changing interest rates, leveraging of assets, reliance on the investment advisor, potential conflicts of interest, payment of substantial fees to the investment advisor and the dealer manager, potential illiquidity and liquidation at more or less than the original amount invested.

This information is not intended to be a substitute for specific individualized tax or legal advice. We suggest that you discuss your specific situation with a qualified tax or legal advisor.

Dan Minnis

More about the author: Dan Minnis

As the Private Wealth Manager, Dan is a CERTIFIED FINANCIAL PLANNER™ Professional. He has dedicated a significant amount of time and effort to completing rigorous coursework, exams, and experience requirements. He offers his clients highly focused financial guidance and strategies to help them achieve their financial goals.

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