7 Roots That Sustain Wealth
How Do I Sustain Myself And My Wealth?
Markets go up, down, or stay flat for an extended period of time. Policies change, causing needed adjustments in your tax planning and your estate planning. Your wealth plan today will be irrelevant within one year’s time.
In order to sustain yourself and your wealth, we believe you must have 7 strong roots that are continuously nurtured and reviewed under the direction of qualified investment, insurance, tax, and estate planning professionals that work seamlessly on your success.
Are you ready to see what a full-service wealth team can do for you? Click “Get Started”, fill out some basic information, and schedule a call with our team so that you can get a complimentary Rooted Wealth Analysis and see how “deep” your roots run.
It starts now, even if you are not retired. Lifestyle Planning focuses on planning for income and expenses so that you can maximize your quality of life.
How do you want to live your life today, tomorrow, and in years to come?
There is no such thing as a perfect investment. With Growth Planning, you can strategically diversify your investments on multiple levels so that your wealth grows, based on the purpose that drives it.
Are your assets growing in the right direction so that they can do what you want them to do?
A market crash may be one of the biggest fears people have, but it's not the only way you could lose your wealth and quality of life. Protection Planning focuses on how to minimize the different areas you may be at risk so that you can sustain your quality of life and wealth.
Don't lose it right before you need it. Are you protected?
Taxes will most likely be your biggest expense for the rest of your life. Did you know that getting to a zero-tax bracket for the rest of your life may end up costing you more in taxes overall? Tax Planning allows you to work with an advisor and a CPA so that you pay the least amount of taxes possible.
How money could you save from tax planning?
Long-Term Care is a conundrum. If you can afford it, you probably don't need it. If you need it you probably can't afford it. Healthcare Planning is a deep dive into the different options you have available to you while looking at your Medicare/Medicaid plans so that you can be prepared for potentially rising medical expenses. Anticipate the possible expenses while it's still cheap. The options available to you may surprise you.
Want to see other options that may be a better fit for you?
When correct planning is done, you may find that you have extra funds that you want to give. Whether it is to your family, the local church or charities, or something else, you don't need to wait until you pass to give. Gifting Planning focuses on efficiently passing your generosity while you are alive so that you can enjoy watching others receive your gifts.
Where do you want to send extra funds?
Legacy or Estate Planning is for everyone. One of the kindest acts you can do before you pass is to get your estate documents in order so that your heirs don't deal with probate. Relationships can be lifted or ruined over how your legacy planning is done, or not done. Determine the legacy you want to leave without compromising others.
Do you have the necessary estate documents?
Whether you realize it or not, you are living your lifestyle plan right now. The quality of life you are living today is the result of your decisions in the past and the confidence you have in your current situation.
Lifestyle Planning focuses on your income and expenses, now and in the future, and how you can enjoy the quality of life you want to enjoy for the rest of your life. Lifestyle planning must be done with a distribution plan. It is a line-by-line account of all of your assets that also shows the inflows (income) and outflows (expenses, debt, etc.).
With a distribution plan, you can organize and optimize your Social Security benefit, your pension (if you have one), and all other aspects of your life.
Maximize Your Quality Of Life
Create A Custom Rooted Wealth Plan
Optimize Your Social Security
Compare Your Options (IE Pension Vs Lump Sum)
Transition Easily From One Stage To The Next
There is no such thing as a perfect investment. The trick to an effective growth plan is to be able to use the different investments and their advantages while not allowing their detriments to cause any problems.
The act of growing your assets is only half the battle. Making sure that you grow the right assets in the right direction is the other half.
Too often, assets grow into a difficult situation, such as large tax bills. Having a strategic growth plan that also considers the other roots can help you sustain yourself and your wealth.
What do you want your assets to do for you?
Be Prepared For Up, Down, Or Flat Markets
Custom Portfolio To Match Your Expectations
Grow Your Wealth Based On What It Is Meant To Do
Avoid Taking More Risk Than Necessary
Create Exist Strategies For Difficult Situations
Most people seem to believe that a stock market crash is their biggest risk of losing wealth. Though a market crash can hurt, it typically takes a couple of them to lose everything.
One of the biggest blind spots that can destroy wealth in an instant is a lawsuit. Unless proper protection is in place, you could lose it all right before you need it. Luckily, there’s still time.
Protection Planning addresses what you need to protect your wealth. From umbrella policies to diversification and contingency planning, this “root” may be one of the most important when it comes to sustaining yourself and your wealth.
Review Your Current Umbrella Policies
Run Contingencies Scenarios
Prepare Income For When Markets Crash
Get Identity Protection
Protect The Surviving Spouse's Quality Of Life
Taxes will most likely be your biggest expense in retirement. That means that effective tax planning could be one of the most effective ways to maximize your wealth. The less you pay, the more you keep. You can’t control the market, but you can control your tax minimization strategies.
Tax Planning is most effective when you work with an advisor and a CPA who specializes in tax planning strategies. Madrona Financial is one of the few that has both in-house.
See how you can save a significant amount of money with proactive tax planning.
Review And File Your Annual Tax Returns
Plan To Pay The Least Amount Of Taxes Possible
Prepare For Your Required Minimum Distributions
Develop Advanced Exit Strategies (IE Real Estate Sale)
Review Your Tax Deductions And Credits
How you want to address your healthcare is completely dependent on how you want to enjoy your life. Some want to stay in their home as long as they can while others want to move to a retirement community and enjoy the social aspect it offers.
Whichever you prefer, planning so that it can become reality is a critical component of your planning. Healthcare Planning is a deep dive into the different options you have available to you while looking at your Medicare/Medicaid plans so that you can be prepared for potentially rising medical expenses.
Plan How To Pay For Future Healthcare Costs
Review Medicare/Medicaid Plans
Determine Your Future Living Environment
Review Current Life Insurance Policies
Create Each Step For When Health Declines
When correct planning is done, you may find that you have extra funds that you want to give. Whether it is to your family, the local church or charities, or something else, you don’t need to wait until you pass to give.
WARNING: Gifting cannot interfere with or compromise your quality of life. This “root” is only when there are extra funds.
Gift Planning focuses on efficiently passing your generosity while you are alive so that you can enjoy watching others receive your gifts.
Where do you want to send extra funds?
Create Custom Annual Gifting Strategies
Minimize Your Taxes Through Your Gifting
Setup Gifting Schedules Within Trusts
Consider CRUTs, CRATs, And Endowment Funds
Diversify Your Assets To Fulfill Their Gifting Purpose
Legacy or Estate Planning is for everyone. One of the kindest acts you can do before you pass is to get your estate documents in order so that your heirs don’t deal with probate.
Relationships can be lifted or ruined over how your legacy planning is done, or not done. Determine the legacy you want to leave without compromising others.
Another critical component of estate planning that is often overlooked is directing your wishing if you become incapacitated. This includes your finances and healthcare wishes.
Do you have the necessary estate documents?
Review/Create Your Estate Documents
Update Your Estate Documents, As Needed
Prepare Your Executor With Documents
Update Your Beneficiaries On Different Accounts
Minimize Estate Taxes
Ready To Get Rooted?
Madrona Financial strives in creating the best financial plans, rooted in all 7 areas that sustain wealth so that you can enjoy the quality of life you want and leave the legacy you want to leave.
If you want to see what a Rooted Wealth Plan could do for you, click “Get Started”, fill out some basic information, and request the Rooted Wealth Analysis. Based on your results, we’ll be able to have a conversation that outlines what is needed to be rooted in all 7 areas that sustain wealth.
If in the end, you decide that you want us to create an official Rooted Wealth Plan, you’ll be able to proceed at that point. If not, no problem.