The goal of accumulation planning is to build wealth and create the liquidity needed to meet the desired financial goals.
People accumulate wealth for many reasons...
- to accumulate capital for future financial independence
- to provide funding for college education expenses
- to purchase homes, businesses and other investment opportunities
- to protect family and income during the growing years
People preserve wealth by...
- having proper asset allocation to reduce portfolio volatility
- creating enough liquidity to meet financial goals
- managing cash flow and investments to set the stage for distribution
- having proper insurance in place to protect your assets, family and/or businesses
Difficulties We Face:
- Taxes – Managing taxes now and in the future
- Investment Risk – Loss of principal • Inflation – Loss of purchasing power
- Liquidity – Having money available without penalties
- Asset Protection – Insuring you and your assets
- Time – Not saving soon enough to attain goals
- Debt – Paying too much interest expense
- Procrastination – Delaying the implementation of a financial plan