Wealth Management

Build my financial foundation now

What is Wealth Management?

Wealth management is the practice of growing and protecting your assets. We will help you develop a strong foundation so that you will be able to achieve some of your personal and financial objectives.

Smart money management starts with fully understanding your financial boundaries—using your assets properly so that you can have a balance of building wealth and enjoying life. It makes little sense to save every penny you make and not enjoy yourself. At the same time, you cannot enjoy yourself so much that you accumulate debit in the process.

How to build a solid financial foundation

Our objective is to help you find that balance. In the diagram below you will notice a pyramid explaining the fundamentals of building a solid financial foundation. Income and revenue are most important. From there, you need to take care of the basics—food, clothing, home, family, and if you have one, auto.


Once you have established the cost of addressing those issues, you need to protect those assets with Health, Life and Disability insurance as well as home owners and auto insurance. Not having insurance because you do not want to spend the money is foolish. If something happens such as an accident or illness, you can lose everything in a heartbeat.

After you have protected those assets, you can now start developing a long-term plan for retirement. This is an area that many overlook or hope to resolve by winning the lotto. Depending on your age, you need to set aside a percentage of your income so that you can retire with a comfortable lifestyle. DO NOT depend on anyone to take care of this! Very often things change and you will find yourself without income if you rely on another person or company to provide for your retirement.

Once you have set up a plan that addresses your objectives and meet your goals, you can start using your disposable income to purchase items or invest additional income in other financial instruments.

How to build wealth

Building wealth is not that difficult. It is a function of growing assets and reducing liabilities. Assets – Liabilities = Net Worth. The trick is to build your assets with the greatest return possible.

If you were to invest a set amount of money each moth into a particular investment vehicle, you would hope to gain the highest return possible. Depending on your Risk tolerance, you may be conservative and be more comfortable with a fixed rate return, (a percentage such as interest rate), or you may have a high tolerance for risk and look for a greater return on your investment.

The higher your risk, the greater your return. However, this also means the greater the possibility of losing your investment.

Let’s take a theoretical example using the formula below:

Contribution X Growth (ROI return on investment) X Time = Wealth

If you were to invest $100 a month and average a 10% ROI:

  • After 10 years your assets would equal $21,037
  • After 20 years your assets would equal $75,603
  • After 30 years your assets would equal $217,132

If any of the functions of the formula change, it will affect your outcome, especially the return (ROI).

Once you have established an objective, determined your risk tolerance, and developed a strategy to reach that objective, you can then begin working toward your financial goals. You can then try to project when you will reach those objectives.

Be aware that no one can guarantee a rate of return unless it is at a fixed rate such as an interest rate. Any investment that is in the market has a risk factor attached to it and can cause you to have variable rates of return.

How do I protect my assets?

What would you do if you accumulated $500,000 in assets after working so hard for 20 years and got sick or hurt? If you did not have health insurance, you could lose all of the money you worked so hard to build. Or, if you we unable to work for a year or two and had to liquidate your assets in order to pay your mortgage or utilities or food bills.

What would happen to your family if you died? Would they be able to continue living the lifestyle you worked so hard to provide them? Would your children be able to go to college and work toward the life they dreamed?

No one really likes spending money on insurance, especially if it is never used. However, when the time comes and all of us will experience that time, it is a necessary security blanket.

The trick is to balance out what you need, what you get and what you spend. It is much wiser to take a higher deductible and reduce your premium than to over insure yourself and waste money. When it comes to insurance, you can always absorb a portion of your loss without it effecting your assets too much.

At Optimized Benefits, we are experts at helping you find that balance, so that you are covered and not paying too much in premiums, which allows you to take the savings to grow your assets.

Build my financial foundation now

About Optimized Benefits

Optimized Benefits is a Boutique Firm dedicated to providing smart solutions to the small and mid-sized business owners and their Employee Benefits plans
we have a focus on Retirement (401K) and Group Health plans

Contact Us

55 W Wacker Dr 14th Floor
Chicago IL 60601

312 263 1590 X 101


Check out the background of this investment professional on FINRA’s BrokerCheck: http://brokercheck.FINRA.org