BG955 Wealth Planning
Taxco Business Guide 
Wealth Planning
Introduction
What Is Wealth Planning?
Wealth Planning merges the disciplines of retirement planning (accumulation) and estate planning (distribution). It addresses the three most critical issues facing high net worth clients:
1. Creating, growing, and preserving wealth. (Will I have enough during my life?)
2. Planning for the use of wealth during life. (Where will the money come from to support my lifestyle and other objectives?)
3. Planning for the distribution of wealth at death. (Who gets it when I die?)
Understanding trade-offs.
Wealth Planning involves trade-offs between:
- Growth & Income
- Risk & Return
- Spending & Security
- Wealth Transfer & Wealth Control
When you don’t have a clear understanding of these trade-offs, it is difficult to make and carry out decisions that involve change.
Achieving a Balance.
An effective Wealth Planning program creates a ‘life plan’ for you that helps you understand the ‘big picture’, and how to balance these objectives, make decisions, and implement changes that provide a total wealth planning solution
The problem with Wealth Planning
People are wealthier and living longer. Many people alive today will live approximately one third of their life in retirement. However, this success creates new challenges – living off and preserving your wealth. Wealth Planning requires you to balance two issues with competing objectives - Retirement Planning and Estate Planning.
Understanding the Process.
The wealth planning process involves 6 stages that you go through as you make decisions about who will get their assets and when. When you go through the process, you logically progress left to right, row by row. When you ‘achieve’ the objectives of a square, you move on to the next.
The Challenge.
Solving the issues in any of the squares introduces techniques and strategies that cause you to go back to step 1 – and re-evaluate.
How does this affect me?
In fact, as you go through the process of making decisions on any of these issues, there is a natural and unavoidable need to see how it affects all of them – because they are all connected. Changing one changes them all.
The Law of Complexity.
The more variables involved in a decision, the more complex it is. The more complex a problem is, the greater the number of ‘what if’ questions will result. The more ‘what if’s’ the more likely delays will result.
Complexity & Selling.
Unless those questions can be adequately addressed, the decision and sales process usually stops until the adviser can perform additional analysis, and set up another meeting, the more delays, the less likely that decisions or sales will take place.
Wealth Planning at Taxco
Like becoming physical fit, your financial progress will be much faster and efficient with on-going personal coaching. At Taxco Accountants, you will be given the opportunity to meet with a professional to keep you on track to a healthy financial future.
We provide a Financial Wealth Analysis during your consultation in which you and your Taxco wealth planner will be talking the same language.
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