Keith Banks Shares Valuable Tips On Investing, Passing Down Inheritance

In a wide-ranging conversation, Keith Banks, president of U.S. Trust, Bank of America Private Wealth Management, described what he feels people should be doing with their wealth. Below are a few pieces of advice the expert shared:

• 1. Have a long-term strategy and a clear understanding of what is it you want to achieve in terms of asset appreciation.
• 2.“Even more importantly, understand the risk you are willing to take to achieve that outcome” – because everyone wants high returns without taking risks, he noted. And, frankly, he continued, most people shouldn’t take such risks.
• 3. Deviate your plan when something deviates in your life. The stock market should not deviate your plan; changes in your life should deviate the plan.

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The investor then went into multi-generational investing. Here are a few general themes he sees consistently among people passing on money to the next generation:

• 1. They want to see family values passed on.
• 2. “They want to make sure the children are good stewards of those assets.”
• 3. They want to make sure their successors “embrace philanthropy.”