Planning Tiers Critical to Multigenerational Wealth Retention
Managing a productive vegetable garden for longevity is a far more complicated endeavor than most young gardeners understand. Since the four main crop types require different primary nutrients, annual plant rotation must be practiced to deter nutrient depletion. This necessitates an education in companion planting, or the proximate placement of ‘like’ species to save water and space while accessing primary nutrients towards maximum productivity. The nutrient base must still be replenished continually while controlling the PH balance, and a weed control program is required to ensure all fruit feeds the family, not bugs and critters. This is just the beginning of the program!
Building wealth during one’s lifetime, like tending a vegetable garden for a season, is an attainable goal for anyone willing to work hard, spend less than net earnings on subsistence, and invest the difference productively. Retaining wealth multi-generationally, however, like tending a productive garden for a lifetime, is a feat requiring higher levels of planning and is reserved exclusively for the very intentional wealth builder. Consider the four tiers of financial planning critical to multigenerational wealth retention:
A Retirement Plan takes every factor into consideration to reveal the extent to which a future retirement is funded and provides specific solutions to resolve projected deficiencies. A sound retirement plan makes conservative assumptions with unknown factors, like future rates of return, tax rates, inflation rates, and increases in Social Security payments. It should be the first plan we construct because higher levels of planning for an estate that will be depleted trying to fund retirement may be a waste of precious resources.
An Estate Plan seeks to maximize the efficiency and success with which wealth is distributed at the end of each generation’s earthly habitation. It also expresses the deepest convictions and purposes behind a person’s wealth-building efforts, and as such, once in place will become the guiding, or authoritative plan (read, “Estate Planning is a Vital Family Enterprise”, 7/10/2023). Work with an attorney who specializes in estate planning in your ultimate state of residence, and whom you trust and communicate well with.
A Tax Plan, unlike tax preparation or tax management (read “Differentiating Tax Management and Tax Planning”, 5/16/2025), involves the use of special tools to minimize lifetime taxes, or even taxes over multiple generations to complement a family’s multigenerational wealth-building efforts. The thesis behind tax planning is to intentionally pay more taxes in low bracket years (and less taxes in high bracket years), with the goal of never missing a highly beneficial tax maneuver due to ignorance. Tax planning exceeds the habitual minimization of annual taxes in both purpose and effect.
A Logistical Income Plan (read, “Planning the Intelligent Income Stream”, 9/20/2024) creatively identifies the right mix of the right income sources at the right time to source retirement income needs most efficiently, and in a manner consistent with one’s retirement, estate, and tax plans; now that is an exciting puzzle to solve!
May we remember to be generous with those in need as we strive to be good stewards with that which Adonai has entrusted to us, Shaun.
“I want to give my children enough money to do something, but not enough to do nothing” ~George Clooney in “The Descendants”
“Wealth gathered hastily will dwindle, but whoever gathers little by little will increase it.” ~Proverbs 13:11
The opinions voiced in this material are general and are not intended to provide specific recommendations.
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