The answer starts with net worth. Net worth is really the end result of all our life’s work. The culmination of every decision we’ve made thus far. A lot of money has slipped through our fingers, and that’s good because we took vacations, had dinners, gave to charity etc… But net worth is the result of all of those decisions. It’s important because that is where the hopes/dreams of our future
Most people are familiar with a balance sheet. Assets minus liabilities equal net worth.
Usually, the way the money gets to net worth is from cash flow. So we added the cash flow domain to the balance sheet.
Cash flow is how it gets on the balance sheet, but it is also how it comes off most times. By focusing on cash flow we can look for inefficiencies that cause leaks. When we lose $1 we don’t just lose the dollar, we lose what it could do for us had we kept it. If we can recover those dollars we can recover everything it can do for us. That might be saving or it might be buying more burgers, but either way, it’s better to have it than not.
We often save more money in taxes than your CPA. The goal for a CPA is to make taxes as low as possible that year, and the strategies used to do that aren’t the same as the ones that create long-term tax savings. Sometimes they don’t save us money at all, they just kick them down the road to be paid later. That might be good if taxes are paid at a lower rate and conventional wisdom says we’ll be in a lower tax bracket. With the Drop and pension coordinated properly with your Deferred Comp and other finances, you shouldn’t have a much lower income. Even if you are down a bracket, if tax rates are higher, the amount paid might not be less.
So we help clients measure if it is really a good idea to be doing these things. To create strategies that save taxes long term, not just in accumulation, but in distribution as well. The biggest problem in our industry is the lack of distribution planning.
Conventional wisdom says… save a bunch of money. Invest. Live off interest.
We have to do this so we don’t dip into principal and run out of money. This strategy creates the highest need for savings, lowest income generated, and highest taxes. So it’s not a very good strategy. Yet everyone does it because they’ve never seen anything else or weren’t in a position to take advantage if they have.
By studying cash flow through retirement, we can coordinate your benefits by measuring alternate distribution strategies that dramatically increase gross income and decrease taxes.
We added protection to the balance sheet too. While the cash flow and savings part
It can also affect cash flow, and when it does, it damages our lifestyle. So we work to build an impenetrable layer of protection so loss can’t get in. If we do this well, not only can we protect net worth today, but also the future of that number, which as I said, is really where all of our hopes and dreams live.
Our process gives our clients the power to take control of their finances by having a financial strategy and making holistic decisions. This provides real results now, and in the future.
Your Deferred Comp, Drop, and pension decisions all proactively coordinated with your spouse’s benefits and other financial pieces to benefit you not just at and through retirement, but as you work as well.
More efficient deployment of cash flow.
Substantially better protection and many times large holes are filled. The fear is that to increase protection, costs will increase. Often we can improve protection without additional cash flow outlay.
More wealth accumulation & much much better distribution of that wealth.
Typically with lower taxes & usually with less risk.
Organized and confident like never before. Our high touch, high tech system helps you always be on top of it.