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Wealth and freedom of choice go hand in hand: The more money you have, the more choices you have.
But once you've reached a comfortable level of wealth, your spending should align with your end goal, and there are only four options, according to a forthcoming guide from Merrill Lynch.
Guide - People - Wealth - Fortune - Level
The guide asks people to decide what they want to do with their wealth: Do you want to spend your fortune, maintain the current level, preserve its buying power, or grow it as much as possible?
Wealth is often equated with freedom: The more you have, the more choices you're able to make.
People - Worths - Spending
But even people with high net worths fret about their spending.
That's according to New York Times writer Paul Sullivan, who, in his latest column, said Merrill Lynch's private banking and investment group is developing a guide to help wealthy clients manage their cash flow.
Guide - Sullivan - Spring - Spending - Priorities
The guide, which Sullivan said will be released this spring, defines various spending priorities, including mortgage payments, charitable donations, and impulse buys. Understanding all the ways in which money is spent today is an essential step in planning for future wealth.
Most importantly, it asks people to decide what they want to happen to the wealth they've already built.
Choices - Level - Power - Value - Inflation
"There are only four choices: Spend it down, keep it at the current level, preserve its buying power by having its value keep up with inflation, or spend or invest it to grow as much as possible," Sullivan wrote.
"Deciding how to decide is really important," Valerie Galinskaya, director of the Center for Family Wealth Dynamics and Governance, told the Times.
Guide - Level - Option - Net - Worth
The guide is handy regardless of your net-worth level. If you're choosing the option to grow your net worth, whether you want to hit the $1 million mark or the...
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