Financial Planning: Disconnects
Your situation is too big that it is critical that there are no mistakes
It is critical that there is a seamless connection between your business and personal planning and that there are no disconnects.
When you have a family, add a marriage, add a business, and have active/inactive family members there can be unintended consequences.
Financial planning: Probate
If you have assets in probate – it is a chance for others to take one last shot at you. The lawyer for your estate has to disprove the claims, then it passes according to your will.
Upon owner’s death: AP accelerated, key employees may leave, AR may slow, creditors may call loans – how will the value get to your family?
Life insurance: Guarantees
3-legged stool of guarantees: Death Benefit, cash value, and premium. Anytime we deviate from these guarantees, customer starts to assume some of the risk.
Life Insurance: Cash-value growth
Between years 5-6 the guaranteed cash value grows more than the annual premium amount.
Life Insurance: Capital Recovery
You will obtain full capital recovery within 20 years.The death benefit is for them; the cash-value is for you
Life Insurance: As a savings vehicle
Life ins as a savings vehicle: There are two types of money; high profile and low profile
If you borrow money from life insurance – it doesn’t show up on your balance sheet.
Do you have a plan in place to protect your most valuable asset?If you lost the race with a cement truck on the way home or if you were at home and slipped on a banana peel or if you woke up with chest pain and the doctor said you are ok but can’t work for 6 months, 1 year, or 5 years; how many tax-free dollars do you need coming in each month to keep you going; not to keep you in Rolls Royce's, but enough so that you aren’t scraping either.If you are disabled, you are economically dead; physically alive, still a consumer, and depleting what you have simply by being alive. The chances are 1 in 3 that you or I will suffer a LTD between now and 65 and that lasts an average of 5 years according to the SSA Would you allow me to show you a plan that addresses this issue?
Disability: Draw 4 boxes
What should you insure first? Car, house, retirement savings, income
Disability: Which job would you prefer?
Job A $100,000; if you are sick or hurt you make nothing.
Job B $100,000 - $1,000 DI premium = $99,000. $60,000 income
Disability: Client discovery
Are you aware that you can go through 10 years of savings within 1 year of a disability?
Will your parents or someone else be willing and able to provide for your family?
If you don’t have an income, how will you save for retirement?
Success Complexity Trap
- No master plan.
- Scattered assets and non-coordinated financial products.
- Too much paperwork.
- Paying too much in taxes.
- Reactive, not proactive.
- Unaware of financial dangers and choices.
- No new ideas - Not reaching lifetime and legacy goals.
- Fragmented team / no quarterback.
- Key people do not know about the plan