The Value of Financial Planning: Your Personal Wealth Curve

Mar 24, 2019

In a previous article, I show how wealth has the potential to grow exponentially over time. When I meet clients, I sometimes draw a “wealth curve” chart like the one above to illustrate this point.

In a perfect mathematical world, your personal wealth curve will grow exponentially. However, in reality, there is a tremendous amount of financial pressure that pushes down on your ability to grow wealth.

Examples of financial pressures include but are not limited to:

  • Marriage
  • Children
  • Divorce
  • Illness
  • Death
  • Debt
  • Job Loss
  • Career Change
  • Aging Parents
  • Charitable Giving
  • Market Volatility

A good financial plan factors all of these potential pressures. However, it is often difficult for someone to assess their own financial problems. Therefore, it is sometimes helpful to consult a financial advisor.

In my opinion, a great financial advisor can help you face these financial pressures by offering five key value propositions.


A great financial advisor will assist you in making sure that your finances are organized. At the macro level, this includes investments, insurance, retirement planning, etc. At the micro level, this includes cash flow management. Organization provides the framework for establishing a plan to grow your personal wealth curve.


A great financial advisor will hold you accountable. A financial plan is meaningless if you do not follow through. A financial advisor can help you pursue your goals by prioritizing them and providing concrete steps for you to take. Completing these action items provide a path to help grow your personal wealth curve.


A great financial advisor will bring objective insight to help you avoid emotionally driven financial decisions that can negatively impact your wealth curve.


A great financial advisor will work with you to anticipate potential financial pressures and address them when they arise. Failure to think about the big picture ahead of time can negatively impact your wealth curve.


A great financial advisor will empower you to take control of your financial situation and give you the knowledge and confidence to pursue your goals. I believe that knowledge and action are both necessary to maximize your wealth curve.

Closing Thoughts

In my opinion, most people only focus on their savings rate, potential rate of return, and investment time horizon when it comes to growing their personal wealth curve. Although these factors are important, it is essential to consider outside influences that could hinder wealth creation.

I believe that a good financial plan created by a great financial advisor can help you navigate these external pressures successfully.

The information in this post is provided for discussion purposes only and should not be misconstrued as investment or tax advice. Under no circumstances does this information represent a recommendation to buy or sell securities. 

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