Retirement-ready: 5 Wealth Management Tips You Should Know

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As policy changes and news headlines impact a stock market grappling with uncertainty, investors are struggling to make sense of the ups and downs in their portfolios. This is especially true of individuals nearing retirement. But there are important steps that you can take now to protect your financial health into your golden years. Here, HSBC U.S. Head of Wealth and Global Private Banking Racquel Oden shares her top five wealth management tips for soon-to-be retirees.

WEALTH MANAGEMENT TIPS FOR SOON-TO-BE RETIREES

1. Stay the Course

It’s important to stick with your investment plan, so that you don’t make short-term mistakes that could impact your portfolio in the long run. With that said, the market volatility is also creating opportunities, so you can take a tactical approach in buying discounted assets that fit your strategy.

Studies show that women outperform men in investing performance, despite most people believe believing that men are better investors. The reason for women achieving higher returns is because they trade less and are more disciplined.

2. Ask for Advice

The current market environment is extraordinarily complex and even the most seasoned investors are finding it challenging to navigate. So, take comfort that it’s okay to not know the answers. Raise your hand and ask questions, and where appropriate, work with a wealth advisor who can guide you through the process and build a customized and tax-efficient financial plan that adjusts as your life changes.

3. Prioritize Cash Needs

With certain immediate needs, such as preparing for retirement, paying for college tuition or buying a home, you need to prioritize cash on hand and give yourself the flexibility to access those funds when needed. There are a multitude of strategies that you can leverage to attain a higher yield on your cash, while also giving you the ability to leverage your money in the short term. It’s also recommended that you set up an emergency fund with six months of living expenses in an easy-to-access account.

4. Communicate with Family

Be open and transparent with your family about your financial goals and wishes. Many years ago, I had an ultra-high net worth client who shielded his fortune from his children, thinking that he was protecting them. Upon learning about their inheritance following his death, they felt shocked, paralyzed and ill prepared to deal with the challenges that come with inheriting great wealth. Talk to your kids about your family wealth and be honest about your financial strategy. This will also ensure that your estate planning is executed according to your wishes.

5. Wills, Trusts and Estates

According to a recent HSBC study called Seizing Uncertainty, 68% of survey respondents reported that they think it’s harder to plan for the future. There’s no better way to preserve and protect your wealth than writing a will that outlines your wishes for your assets, property, charitable donations and more, thus reducing the likelihood of disputes among heirs.

Trusts and estates are equally important because they offer a layer of legal protection for your assets as well as more flexibility and protection than a will. Good estate planning is important for any individual and/or family passing down assets to the next generation.

ABOUT OUR EXPERT, RACQUEL ODEN 

Racquel Oden is Managing Director and U.S. Head of International Wealth, Premier, and Global Private Banking at HSBC, where she oversees the bank’s U.S. wealth management, global private banking, premier banking, and asset management businesses.

Prior to joining HSBC, Racquel was a Managing Director at JPMorgan Chase, where she led Network Expansion for the Consumer Bank, overseeing growth strategy and branch operations across 25 states. She also previously headed JPMorgan’s National Sales team, supporting 20 million customers in 48 states, and earlier served as Northeast Division Director, managing more than 10,000 associates and advisors across the New York tri-state area and overseeing over $300 billion in deposits and investments.

Before JPMorgan, Racquel spent eight years at Merrill Lynch as a Managing Director in several executive roles. Most notably, she served as Market Executive for the flagship Fifth Avenue Market in New York, the firm’s largest, with more than 250 advisors managing over $35 billion in assets. She also held leadership positions as Head of Advisor Strategy and Development—supporting 14,000 advisors through training and recruitment initiatives—and as Head of Global Product Strategy & Business Development for Global Wealth & Investment Management.

Earlier in her career, Racquel spent more than a decade at UBS, where she held senior roles including Managing Director of Global Product Internal Sales, Head of Client Experience for Banking, and Head of Merger & Acquisition Integration. She also served as Senior Vice President of Client Services and as Chief of Staff to the President of UBS. She began her career in equity trading at Morgan Stanley in 1997.

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