The Four Pillars for True Wealth Planning
Let's first define what we mean by True Wealth. True Wealth is the value of assets which can be converted to assure that your goal my be brought to fruition. True wealth is wealth that provides for your goals. Multiple goals may require greater wealth. Any wealth beyond that goal need can possibly be considered in excess of that need. This excess can be considered available for future goals, charitable causes, or gifts to heirs. You have the unalienable right to identify what your need is.
Merriam Webster's Definition of Wealth: Wealth is 1.) an abundance of valuable material or resources; 2.) abundant, profuse supply; 3.) all property that has a money value or exchangeable value or all material objects that have economic utility.
Strategic & Tactical Planning
Organizing your wealth by purpose allows for the targeting & accomplishment of your goals; i.e. retirement accounts, college savings accounts, emergency accounts as well as many others.
Strategic Planning establishes the target goal while tactical planning puts the plan in motion utilizing planning concepts, investment & insurance vehicles. Most people and families have multiple financial goals utilizing many planning concepts & vehicles.
GBJ Scott Financial has modeled the goal planning process to assist you in creating a robust financial life taking into consideration all aspects of need & desire.
Cash flow, taxes, investments, & preservation of assets are the primary areas of financial planning. Always under consideration are how the decisions in one area of planning may affect another area of planning. In other words, how decisions made about one goal may affect the outcome of a different goal.
Creating wealth, acquiring wealth, building a business, creating financial accounts of value, owning real assets, all of these build your structure for wealth planning. In a sense they are the framework or pillars for your financial building.
Every building needs a strong foundation, and every building needs a crown (ceiling, roof, dome) to protect the building and contents. The product of True Wealth is the crown, the roof. Supporting the crown are four pillars - four areas of financial planning. The four pillars are Cash Flow Planning; Tax Planning; Investment Positioning; and Estate Preservation. The four pillars provide supportive strength and hold the crown above. The four planning pillars work in unison - in accordance, harmonious & in concert with each other. Decisions about one pillar will affect the outcome of the others.
The foundation is made up of one’s personality qualities (personality traits) of virtue, motivation, determination, discipline, focus ability, & patience.
The Four Pillars for True Wealth Planning:
- CASH FLOW PLANNING:
- Type of income & taxation
- Credit vs. Leverage
- Systematic Saving System – the backbone of True Wealth.
- Beyond the business checking account / MaxInterest Account / opportunity account - Core Cash Account (for Small Business Owners)
- TAX PLANNING:
- personal income tax efficiency
- Investment tax planning.
- a tax blueprint for greater tax savings. (for Small Business Owners)
- tax operating system: implementation of tax code to capture maximum tax savings. (for Small business Owners)
- INVESTMENT POSITIONING:
- Risk / Reward analysis
- Account & Portfolio Management / 401k / DC Plans / IRAs
- Account Advisor (TPA) Management
- Holistic Purposed Investing
- Tax Advantaged Investing; Qualified Retirement Planning / Deferred income / Tax Free income
- ESTATE PRESERVATION:
- Risk planning / insurance planning (life & LTC)
- pre-estate planning
- Estate planning
- Business Valuation (for Small Business Owners)
GBJ Scott Financial is here assisting you in your quest of True Wealth: Create. Grow. Preserve.
