All true wealth begins with positive cash flow; without it, little wealth can be generated. Cash flow refers to the net amount of cash and cash equivalents being transferred in and out of a household (its inflows less outflows). Using this formula, we seek to determine if/how we can optimize your cash flow by reviewing where inflow is coming from and where outflow is going. The primary outflow categories include: living expenses (budget), liability payments, insurance, planned expenses, savings, and taxes. The difference between your gross inflow and this outflow is either free cash flow (surplus) or cash flow deficit (shortage).

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All net worth is determined by assets minus liabilities. With an understanding of your cash flow efficiency, we can now look to where the free cash flow is allocated as well as its liquidity. Your assets are allocated to six buckets: cash, investments, retirement, insurance, entity, and property.

Retirement Modeling is centered around providing the cash flow to support a work optional lifestyle. Our “Probability of Success” retirement formula is Expenses (driven by living needs) X Longevity = Cost of Retirement. We then build the strategies to fund your retirement, starting with retirement cash inflows (Social Security, pensions, annuities, and planned distributions). The remaining need is supplemental withdrawal and the withdrawal rate percentage. If you are underfunded and still accumulating assets (working) we will then look at if you need to save more, defer retirement, or reduce living expenses.

Wealth and lifestyle protection is designed to evaluate the strategies that are used to protect your money so you can maintain your desired lifestyle and preserve your legacy wealth. These core areas include: Estate, Tax, and Insurance.

Legacy and multigenerational wealth is the plan you have set in place to transfer your wealth at passing. The core areas we review include: family legacy discussion, estate tax, and tax on decedent in worst case scenario (current year and at passing).