Four Stages of Wealth
Wealth Protection
- Identify the human capital value of your life and the value of insurance upon premature death
- Quantify your future income if disabled (perhaps your largest asset)
- Review your personal and business liability coverage limits (generally too low)
- Consider long term care planning to help you maintain financial independence
Wealth Accumulation
- Understand the importance of balancing both Qualified and Non-Qualified savings plans
- Review and coordinate the levels of diversification necessary in all current investments accounts
- Consider all suitable products available for accumulating wealth
- Recognize lifecycle changes and the need to change financial strategies
Wealth Distribution
- Find all sources of retirement income necessary to maintain the same standard of living
- Evaluate all suitable products that are designed to help enhance income generation
- Model an income plan that adjusts for inflation, market fluctuations, and taxes
- Spousal or legacy income considerations
- Business succession as a potential income source if started early
Wealth Transfer
- Review your Business & Estate strategy plan with your legal and accounting team (leave a legacy not a mess)
- Understand all the tools available to create a personalized and thoughtful estate plan; these may include wills, executors, durable power of attorney, advance medical directives, bequests, and documented succession plans
- Review the effective uses of various types of trusts to protect privacy, control future income streams, and pass on assets in an orderly way
- Identify the liquidity needed to fund estate taxes
- Explore charitable giving as a powerful tool for planning.
