Smallwood Wealth Management Taking a
BY SHANNA O’MARA
TheJournalNJ.com | OCTOBER 2020 63
Whether someone is 62 and looking ahead to retirement or
there are factors being overlooked that could harm one’s
-
cial Planner®, Senior Wealth Advisor and President of Smallwood
Wealth Management – works with people every day who want to
manage their assets in order to set up a bright future for themselves,
one of relief and assurance rather than stress.
“The most important component of any strategy is understanding
what your current plan is,” Smallwood said. “Maybe that’s for-
just thoughts during the morning cup of coffee.”
Either way, he said, having a plan is crucial and adapting that
plan to life’s many curveballs is even more important.
management, Smallwood has worked with clientele of all ages and
meaning all are welcome and encouraged to meet with him and his
staff to determine the right steps for them.
“My dad was in this business for 45 years,” Smallwood said. “I
have many of his clients now, and I even work with some of their nowgrown
children. The goal is to build a relationship. I want to keep my
clients until I’m no longer here. I want to grow with them. This is not
about a transaction, as many things are these days, but a relationship.
Some clients who come to me have nothing, but my goal is to help
build a bright future for them. We don’t sell you something then never
see you again. This is a process.”
Smallwood Wealth Management’s process focuses on helping
clients reduce risk and taxes, accumulate more wealth, enhance retirement
income and pass more assets on to the next generation. An advisor
works with the client to draw up a wealth curve blueprint, showing
how much money is coming in and what it is being spent on. This
“snapshot of income” will detail one’s savings rate, taxes, insurance
coverages, debt structure, mortgage payments and more.
“It’s all about starting where you are,” Smallwood said. “Where
does your money go? What are you spending on? What are your tax deductions?
Money comes out of your paycheck every month. Shouldn’t
you know where it goes? We focus on how to repurpose money back
into your savings without hurting your lifestyle. Your plan has to have
a rock-solid foundation, meaning cash in the bank and protection
through insurance and wills. If you don’t like where you’re headed, you
really won’t like when you get there. But we can change that trajectory.”
An advisor will analyze how their client prioritizes their wants and
needs and use a “reverse budget” to maximize savings while cutting
unnecessary costs. The key, Smallwood said, is learning where one’s
money is going and what they can take advantage of, ultimately saving
more of their own cash. He said he always aims for his clients to have
50 percent of their annual savings in a liquid savings account, meaning
they’ll have access to that money immediately in case of an emergency.
Especially in times like these, it is critical to have cash available
John Smallwood
in the event of sudden job loss or medical expenses.
“Most people don’t have that liquid backstop,” he said. “That’s money
you can get in a matter of three or four days. My grandfather used to
-
nity, you can capitalize on it. People seem to get caught in a trap where
they want money to make money, but it’s better to just have it there.”
With the pandemic halting travel and canceling large events, people
have the chance now to “hunker down in their savings” and reimagine
their plan. Advisors may encourage them to look for a reduction in tax
the opportunity to set themselves up for success, something Smallwood
didn’t realize when he was that age.
“There’s nothing worse than having a conversation with a kid who
“They don’t realize how much damage that can cause. I’ve been there,
with that mindset. If I could take what I know now and reason with
18-year-old me, I would have made better decisions and I’d be in a different
spot today.”
Smallwood said most people have dangers hidden inside their plan
but need an expert’s help to identify them. For example, they may be
paying for services they don’t need, insurance plans with little coverage
or hiked up taxes on their earnings.
“Some stuff I’ll do for you, but a lot of it is my guidance and your work.
The sooner you establish good habits, the better life you will have. Budgeting
is like a diet; it doesn’t work, but if you save money right out of
the gate, you can keep your lifestyle and be secure for the future.”
Guide to Growing, Protecting, Enjoying, and Passing On Your Wealth,”
which is available on Amazon. He also self-published “5 Ways Your Wealth
is Under Attack: Are You Ready to Take Control of Your Financial Life?” To
request a copy of this book, visit SmallwoodAssociates.com. On the website
are also podcasts, webinars and a link to self-schedule a consultation
/TheJournalNJ.com
/SmallwoodAssociates.com