Find peace of mind with UBS Wealth Way
These measures are useful and objective standards that we can use to compare investment options against each other. They help us quantify the trade-offs and build better portfolios. Even so, the investment risk parameters are limited; they are not designed to answer the right questions when it comes to positioning families for financial success. When we talk to families, they don’t care about traditional risk parameters. Instead, they seek peace of mind, the ability to live their lives without worrying about money.
In many of these discussions, the key word is sufficient. Families want to know they have enough to meet their goals. To withstand shocks. Enough to feel comfortable transitioning into retirement and starting to spend your retirement savings.
This search for peace of mind is one of the reasons we developed the UBS Wealth Way framework, which segments wealth into three distinct strategies specifically designed to meet a family’s goals, allowing families to reframe their investment decisions and take the appropriate amount of “risk” – however you define it – to achieve their goals.
A family’s goals aren’t static and unchanging, so neither should their portfolio. Segmenting wealth into three distinct strategies that meet a family’s goals creates a dynamic investment strategy that intuitively responds to a family’s changing priorities, while allowing each investment strategy to position itself based on opportunity in a changing market environment.
Perhaps more important than designing a robust investment strategy, wealth segmentation also helps us shift our perspective in a way that adds context, comfort, and peace of mind. When a family understands the purpose of each of their wealth, it helps to intuitively reinforce a sense of progress and security.
This perspective is empowering in strong market environments because it helps uncover the potential for ambitious new goals, but it is especially powerful during times of financial stress – when we care most about providing for our families – by reinforcing the fact that market losses are short-lived and represent an opportunity for investment for long-term spending.
Talk to your financial advisor about the UBS Wealth Way approach to portfolio management. Segmenting your wealth by objective will be an important first step. You should also discuss with your advisor how you view risk and peace of mind. What keeps you up at night? What wakes you up in the morning? Exploring these topics together will help you find the right solutions to achieve your goals.
Main Contributors: Daniel J. Scansaroli, Ainsley Carbone, Jeff LeForge, Justin Waring, Katie Williams
See original blog – Finding peace of mind with UBS Wealth Way, May 25, 2022.
UBS Wealth Way is an approach integrating Liquidity. Longevity. Legacy. strategies that UBS Financial Services Inc. and our financial advisors can use to help clients explore and pursue their wealth management needs and goals over different time periods. This approach is not a promise or guarantee that wealth, or financial results, can or will be achieved. All investments involve the risk of loss, including the risk of loss of the entire investment.