7 Roots That Sustain Wealth

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.

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? 

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. 

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.

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.

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?

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?

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. 

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