Established Families

Financial Growth

• Begin to identify appropriate vehicles to accumulate savings addressing three primary needs:
  1. Short term savings - i.e.; cash for emergencies
  2. Intermediate - term savings, three to five year time horizon - i.e.; cash for down payment on car, boat, vacation home, etc.
  3. Retirement savings - money to be set aside for accumulation and create income for future needs, fifteen to twenty year time horizon.
• Begin to identify levels of risk tolerance in order to utilize appropriate financial vehicles:
1. Conservative - CD's, money markets, bonds, annuities
2. Moderate - Mutual Funds, dividend paying stocks, variable annuities
3. Aggressive - Growth stocks, commodities, options

Asset Protection

Primary tools for asset protection are:

1. Life Insurance - Type of life insurance purchased is determined by need and budget
• Cash accumulation - permanent insurance
• Term - coverage for a specified period of time

At this life stage, cash accumulation products provide opportunities to accumulate tax-free money that can be used to fund retirement plans.

2. Disability Insurance - When income levels are significant, disability insurance is critically important to protect income. Disability insurance:
• Affordable
• Flexible in design and scope of benefits
• Guaranteed
• Replaces significant portion of lost income

For established business owners, specific disability products can be used to replace various ongoing business expenses in the event of a prolonged disability of the owner.

3. Long Term Care Insurance
• Limited insurance providers
• Offsets expenses incurred for confinement in a nursing home or home care
• Plans can be customized to fit budget
• Typically expensive

New product innovations offer more affordable alternatives.

Retirement Planning

• A long-term process designed to create a realistic road map to provide financial freedom at retirement.
• A retirement plan should include:
1. Appropriate contribution levels
2. Appropriate financial vehicles, i.e.; 401K, 403b, IRA
3. Funds available to build supplemental retirement savings outside of the traditional qualified plan market
4. Possible obstacles
5. Realistic financial goals
6. Timeline

At this stage it is important to identify a knowledgeable and skilled advisor to assist in developing a plan.

Income Planning

Process of determining amount of income needed to sustain during lifetime.

1. Utilize various financial calculators available to assist in determining income needed annually
2. Identify existing sources of retirement income
• 401K, 402b, IRA, Roth IRA
• Annuities
• Brokerage Accounts
• Cash Value Life Insurance
• Pension
• Social Security
3. Income goal for retirement should be 70-80% of pre-retirement income. Identify expenses that will continue in retirement:
• Entertainment
• Federal and Local Taxes
• Insurances - Home, Vehicle, Life, Long Term Care
• Home Maintenance
• Rent/Mortgage
• Travel

If the existing plan comes up short, look at alternate retirement vehicles to make up deficit.

Estate Planning

• A comprehensive plan selected to pass assets jointly or singly owned at death to designated heirs and/or beneficiaries.
• A well-developed estate plan would typically include:
• Business ownership
• Investment accounts
• Life insurance/Annuities
• Partnership interests
• Personal property
• Retirement plans
• The estate plan is generally guided by a will or trust or both
• An executor and/or Trustee are usually appointed to assist with settlement of estate assets.

The estate plan documents are usually written by an attorney to incorporate the legal requirements and personal goals and wishes.

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