Center Valley, PA 18034
Did you recently add a second comma to your bank balance? Has a recent financial event raised your net worth to the next level? It’s an exciting time, whether it’s the result of your long-term goals (e.g., from the sale of a business), a windfall transfer of wealth, or a key promotion. You’re probably already considering how to protect and manage your wealth.
Keep in mind that this article is for informational purposes only and is not a replacement for real-life advice. Consult tax, legal, and accounting professionals before modifying your financial strategies as your income changes. This article was written to provide insights into a few related factors you may wish to consider.
You may already have an estate strategy in place. However, reaching a new level of wealth may be an excellent time to revisit your approach. More wealth can mean a larger estate and more complex estate issues. For example, it may be time to consider a living trust. You create a living trust while alive and fund it with the assets you choose to transfer therein. The trustee (typically you) has full power to manage these assets. But using a trust involves a complex set of tax rules and regulations. So before moving forward with a trust, consider working with a professional familiar with the relevant rules and regulations.
Many newly wealthy individuals feel like they are in a rush once they have their money. Now that the world is your oyster, you may be better off waiting for the pearl. This means getting accustomed to your new bank balance before putting the money to any practical effect. A few conversations with a financial professional regarding your ambitions may help put things into perspective.
Your new wealth will create as many questions as it will opportunities. For example, if you’ve sold your business or are considering leaving your job, you will need to consider health insurance choices for yourself and your household. Other household demands may also warrant consideration, from travel costs to big one-time purchases. You will almost certainly face some unplanned expenses along the way, so be sure that your short-term budget makes an allowance for that.
Your risk tolerance will be affected in part by your ongoing day-to-day needs. For example, if you’re considering buying a new home, money may need to be earmarked for all expenses related to that purchase. The risk takes into account not only the home itself but also your overall strategy. The time horizon determines the lengths of time considered for your various expenditures. Some unexpected expenses may happen within a few months, while others can be put off for up to a year.
Congratulations on that second comma becoming a part of your everyday life. It will mean many exciting things for you and your household, some of which you’ve prepared for and others you might not have anticipated. A trusted financial professional in your corner may provide answers to your questions along the way. Contact us if you have any questions.
The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG, LLC, is not affiliated with the named broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. Copyright FMG Suite.
Estate planning focuses on three key areas: Documenting your wishes, Stewardship Goals and Tax Efficiency.
At Capital Planning, our experts can work with an attorney to help you document your wishes and protect your family. We can guide you on the benefits of a Will, Power of Attorney, Advanced Health Care Directives (Living Wills) and Trusts.
Stewardship planning can help you protect your heirs from potential risks such as creditors, divorce, or poor money management skills. Stewardship can also help you meet your goals for charitable giving and life’s passions.
Tax efficiency planning can save your family upwards of 50%+ in taxes when combining estate tax, inheritance tax, and capital gains tax planning strategies.
If you would value advice on any of the above, book a discovery meeting today and speak with one of our advisors about independent financial planning with purpose, so you can focus on enjoying life.
Many people are curious to understand the potential tax benefits available to them. Questions such as “Is a 529 plan right for me and my goals?” are common, and at Capital Planning, we’ll be happy to guide you on this and any other questions you have.
We can work with you to conduct an analysis of funding needs, and provide recommendations as to investment allocation, ultimately helping you to select the right investments for your goals.
Book a discovery meeting today and speak with one of our advisors about independent financial planning with purpose, so you can focus on enjoying life.