Lifetime Planning

Most of my clients are concerned about preserving assets. Many are concerned about having sufficient funds for lifetime needs. Others wish to maximize what they are able to hand down to their children and grandchildren. Part of asset preservation concerns investment and tax strategies. Another important aspect of asset preservation is attention to various lifetime planning opportunities that limit expenses without diminishing quality of life.

How can lifetime planning help to preserve assets? Lifetime planning focuses on limiting expenses without diminishing quality of life. One of the most important strategies is to insure that healthcare options are in place so that the medical bills do not eat up ones life savings. This involves a careful evaluation of various insurance options including Medicare, Medigap, Prescription Plans and Long Term Care Insurance.

How can I think more constructively about investments and tax strategies to preserve assets? Investment decisions and taxes can have important implications on asset preservation. The specifics will depend on the assets of the individual, his/her standard of living and future needs. For example: Investment decisions must be include consideration of tax ramification such as capital gains taxes. Estate planning must take into account assets of the client (and his/her spouse) in order to minimize estate taxes. Gifts to family members must be made with an eye toward maximizing the annual exclusion if there might be estate taxes. And investment decisions must be made with a eye toward future needs of the investor - - insuring that there are sufficient liquid assets for a healthcare emergency.

Note: I am constantly amazed at how many banks and financial advisors recommend annuities for senior based on the interest rate without considering the fact that the investor might have to pay a penalty for withdrawal.