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Top 5 wealth management tips in 2021

In the year 2021, it will become necessary to incorporate good wealth management habits so that you and your family are financially secure. It is essential to do so, to prepare yourselves for any untoward financial problem that might occur. When it comes to wealth management, it just does not mean diversifying your investment portfolio, but also investing in pension plans, investing in Registered Retirement Savings Plan or RRSPs, and purchasing suitable insurances to protect your family. It is also crucial that you plan your savings and investments to have sufficient income to lead a comfortable life when you retire. Thus, wealth management is being perceived by economists and investors as one of the most important financial activities that individuals should undertake in 2021.

Wealth management tips

Some of the simplest ways for better wealth management for the upcoming year are as follows:

  1. Maintain a family budget
  2. Invest money in insurances and pension plans
  3. Check the tax plans
  4. Be on schedule with the payments of credit cards and loans
  5. Discuss your plans with a wealth manager

Maintain a family budget

It is crucial to create a family budget and strictly adhere to the budget. When you make the budget, you must incorporate savings and spending both in it. In other words, the budget should not be only about the items that you need to spend money on. It is often prudent that you first set aside money that you want to save from your income and then make your family budget out of the remaining money. In this way, you will force yourself to save money, and you will not be induced to take money from your savings. Additionally, you will also be forced to stay within your budget and not exceed it. Thus, it is often considered that the first step towards wealth management is making a family budget to have an idea of the money you can save and the money you have to spend.

Invest money in insurances and pension plans

When you have an idea of the amount of money you can save from your daily budget, you will get an idea of the money you can save annually. This is important to identify the various pension plans and insurance chassis’s that you can invest money in. Identifying your total savings is essential because different insurance plans require an additional amount of money to be paid as a premium. You must select a plan whose premium amount you can pay comfortably. If you cannot pay the premiums regularly and default on the payments, the insurance too can get cancelled. Hence, you must select a suitable insurance plan for which you can pay the premiums comfortably.

The same is applicable for pension plans. For example, suppose you invest in a pension plan that requires you to deposit a certain amount of money regularly at specific intervals. In that case, you will need to ensure that you can come up with the requisite amount of money at the end of the given period. For this, too, you will need to incorporate good saving habits. Otherwise, you might end up defaulting on the pension plans, which can prove to be counterproductive and costly.

Check the tax plans

When you pay taxes, ensure that you follow the proper tax plans. If there are any tax savings schemes that you can opt for, then consider implementing these. It is essential to save on taxes and avoid paying extra tax. So discuss with your wealth manager the taxes you pay and the current tax plans applicable based on your income. If you can submit claims for tax reliefs and exemptions regarding charitable donations, medical expenses, and other such expenditures, then ensure that you do so on time so that you do not miss out on the exemptions.

Be on schedule with the payments of credit cards and loans

If any payment is due, such as your credit card bill or your loan EMI, ensure you do so on time. You mustn’t miss out on these payments as banks and financial institutions are known to levy penalties if you do not make the payments before the due date. These penalties will reduce your monthly savings, and as a result, your budget will also not be as expected. Financial experts and wealth managers mention that it is vital for individuals who have taken loans to set the money they are supposed to pay as Equated Monthly Installments or EMIs aside from their monthly budget. This will ensure that they are protected from paying penalties due to late payment or missed payment of loan EMIs. Thus, to protect your savings and stay on a budget, you should be on time with your credit card bill payments and loan repayments.

Discuss your plans with a wealth manager

It is a good idea to discuss your long-term savings and wealth management goals with a wealth manager associated with reputed insurance or a wealth management company. They will guide you regarding the best investment plans and the insurances that you should consider purchasing. Given the overall condition of 2021, investing in various medical insurances would prove to be a good idea. However, the type of medical insurance that would ideally suit you and your family’s requirements would depend on your family members’ average age. The best way for selecting suitable medical insurance would be to take the advice of the wealth manager.

The significant factors to be considered, managing your wealth are your expenses and how much you want to save annually. Once you have evaluated these two factors, you can consider investing in suitable insurance and pension plans. If you live anywhere in or near Red Deer and are wondering about consulting a wealth manager, then get in touch with us at Next Level Insurance by giving a call at 587-905-0114. Our insurance and wealth management services will help you evaluate your finances and select the best insurance policies and pension plans you should invest in. You can also book an appointment by logging into our website: So if you are looking for expert wealth management and insurance advice, then give us a call right away.

Reference URL

  1. Moneysense
  2. Manulife