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Given the broad financial knowledge required today, establishing a relationship with a fee-based financial planner like Golden Gate Advisors, Inc. is what matters most. Our objective is to help put you in control of your financial future and so you can experience the joy of achieving your goals. Our Wealth Planning for high net worth individuals is personal financial planning that uses the same approaches and risk management techniques favored by institutional investors.
WEALTH PLANNING TOPICS YOUR FINANCIAL PLAN From complex investment products to convoluted tax laws, planning for your financial success is complicated. We will help put you in control of your financial concerns, focus your objectives and illustrate how you can decide how to achieve them. We can then help you implement and monitor your objectives by providing you with the necessary financial products and services. Throughout the process, we never lose sight that the one essential goal is personal service to you and your family. We are dedicated to helping you refine the assumptions and clarify our understanding of your goals as required. A financial plan answers these questions: Where Are You Going? Where Are You Now? How Will You Get There?
The Planning Function involves Six Areas: 1. Financial and Cash Flow Planning: Determining your financial position by developing current financial statements and projected budget statements based on planner and client collaboration. 2. Risk Management and Insurance Planning: Capital needs for maintaining your current position in the event of disasters and accidents. With risk, you want to either avoid it, retain it, transfer it, share it, or reduce it. Risk can be either voluntary or involuntary by failing to recognize exposure. This involves the following areas: Risk of Negligence and Property Damage: Property Fire and Casualty Insurance Liability Insurance - Home. Auto, Business (E&O, Malpractice) Risk of Health Problems: Medical Insurance Disability Insurance Long Term Care Insurance Medicare, Medicaid, Social Security, COBRA Risk of Death: Life Insurance (Term, Whole Life, Universal, Second to Die, Split Dollar) Annuities: Risk of Living too long Employee Benefits: Analysis of employer offered benefits.3. Investment Planning: Planning for allocation of assets and investment pursuant to risk tolerance guidelines. Analysis of stock options including Incentive Stock Options (ISO) and Non-Qualified Stock Options (NQSO) with recommendations on exercising and selling and the resulting tax consequences. 4. Income Tax Planning: Focus on wealth maximization not just minimize income tax expenditures. Tax avoidance not tax evasion. Use tax-free investments and tax-deferred investments. 5. Retirement Planning: Capital needs projections at retirement. Planning for investment and saving before retirement so that retirement goals are met. Qualified Plans (Defined Benefit and Defined Contribution) and Non-Qualified Plans available to the client are analyzed and recommendations are given to improve performance. 6. Estate Planning: Capital needs projections at death and estate planning to minimize estate taxes and maximize transfer of estate assets to family and/or charitable entities. Use of the martial deduction, trusts and other lifetime transfers such as GRATS, GRUTS, QPRTS, CRATS, CRUTS, and Pooled Income Trusts. Ways to avoid common estate planning mistakes. See Developing an Estate Plan. Five Secrets to Wealth in the 21st Century Let's
talk about how to build personal wealth in the 21st
century. However, if you’re expecting hot stock tips or a nifty new way to use
the Internet to invest your money, you’ve come to the wrong place. In fact, we
confess to being somewhat deceptive with the title. There are no “new” secrets
for building wealth in the new millennium. They’re really the same old secrets
smart people used in the last century to get wealthy. 1. Have a goal.
“I wanna build wealth” and “I wanna retire rich” aren’t goals. They’re dreams,
and vague ones at that. To build wealth, you first need to determine what you
want that wealth for. Do you need the money to buy your own business or retire
in a certain place by a certain time? Then you can decide how much money you
actually need to accomplish those goals. Instead of thinking about becoming “wealthy,” a better concept might be to become “financially independent.” That suggests enough money to allow you to make the choices you want to make. Perhaps you want to have enough money to quit the job you’re in so you can pursue another career that you love more but that doesn’t pay as well. You may not need a lot of “wealth” to accomplish that goal. 2. Spend less than you earn. There isn’t a millionaire on the planet who got that way by spending all the money they made. That means living below your means. It doesn’t have to be far below your means, say Certified Financial Planner practitioners, but it does mean not spending every penny you earn. Take housing, for example. People often buy the maximum amount of home they can afford. Yet for every dollar they don’t spend on a house, they save approximately $2.40 over the life of a 30-year mortgage. One trick is to design and follow a spending plan, or budget, so your money goes exactly where you want it to. Another key is to spend wisely. Research has found that Americans “waste” 20 to 30 percent of their money by not getting the most for their dollars through such simple steps as using coupons, comparative shopping for the best buys from food to auto insurance, and a zillion other money-saving tricks. 3. Minimize your debt. It’s difficult—and not always wise—to avoid debt entirely. Yet too many Americans saddle themselves with needless debts. It’s little wonder bankruptcies are near an all-time high despite a booming economy. Too many consumers can’t wait to spend. One key is to avoid consumer debt that pays nothing in return (unlike mortgage or college debt), provides no tax breaks and is often high priced. This particularly applies to credit-card debt. 4. Invest early, wisely, often and as much as you can afford. “Early” is especially the key. Nothing consistently makes money like time. Investments that return even modestly over the years will usually make far more money than investments made hurriedly at the last minute. Other “old fashioned” 20th century secrets to investing include maximizing investments in tax-deferred accounts and investing regularly every month. And skip the day-trading and market timing. A recent study of mutual fund investors by the Boston-based financial services research firm of DALBAR found that investors who bought and held their stock mutual funds over the past 15 years earned 17.9 percent a year. The average investors, who switched in and out of funds every three years, earned just 7.25 percent a year. 5. Protect your wealth. As you build wealth, the last thing you want to do is lose it to an unexpected financial catastrophe. Most of us get the basic insurances—life, auto, home. But some of us skip medical coverage because it’s expensive and tough to get sometimes, even though a serious medical illness can wipe you out financially. Many of us overlook disability coverage—insurance that replaces income lost because of sickness or disability. Only a small percentage buy long-term care insurance, and many overlook liability insurance and the use of asset protection trusts to protect us from someone suing us for all we’re worth. You don’t want others becoming wealthy on the money you worked so hard to save. (Financial Planning Association)
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