Is There a Planning Strategy That Can Expand Your Wealth’s Growth Potential?
Being intentional is the key to making successful plans and creating options for yourself.
Many of our clients find they have saved and invested enough to provide for their own needs, those of their loved ones, and to make a major philanthropic impact – and that there are still funds remaining. These assets can be allocated to a part of the balance sheet we call “perpetual growth.”
Why perpetual growth?
Our clients sometimes treat their entire investment portfolios as single pools of capital without considering when and how they might use their funds. This can impede long-term wealth creation. Some clients choose a different path: by distinguishing between the amount of wealth needed to fund their lifestyles as well as other goals (such as gifting to family or charitable giving) from the amount of wealth that may not be required within their lifetimes, they can more efficiently align their balance sheets with the things they want to achieve for themselves, their families and their communities.
Articulate your goals
Any wealth planning process starts with identifying a vision for your wealth and organizing your capital toward these ambitions. Once those goals are established and prioritized, we’ll determine how much funding each will require, along with the appropriate time horizon.
Fully fund your lifestyle and other high-priority goals
When earmarking the amount required to fully fund articulated goals, your team will incorporate factors such as market volatility, longevity, inflation and taxes, using conservative assumptions to provide a high probability that these assets won’t be exhausted prematurely, irrespective of the market environment.
Fund perpetual growth
With the assets required to fund your lifestyle and other high priority goals ringfenced (assuming there is an excess amount of wealth), there is an opportunity to think through additional family goals, or to pursue additional safety or additional growth.
Alongside traditional assets such as stocks, we believe private equity, private credit and hedge funds can play an important role when investing for perpetual growth. These can include:
• Privately held businesses
• Concentrated positions
• Real estate
• Leveraged investments
In addition to making investment decisions, preserving the purpose and integrity of these assets requires multiple generations to develop and adhere to strategic capital allocation plans that address the needs of family members at various life stages. It is crucial to have a clearly articulated succession plan and a robust decision-making process.
Rick Barragan is the Managing Director,
Los Angeles Market Manager, for
J.P. Morgan Private Bank.
[email protected] | (310) 860-3658
privatebank.jpmorgan.com/los-angeles
Source: “Is there a planning strategy that can expand your wealth’s growth potential?” Christopher Kelly, CFP, U.S. head of wealth strategy, and Tom Lenkiewicz, senior wealth strategist and head of retirement & asset allocation, Oct. 21, 2026.
